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Effects of the Renewable Energy Act on structural change in Agriculture- The case of biogas

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  • Appel, Franziska
  • Ostermeyer-Wiethaup, Arlette
  • Balmann, Alfons

Abstract

Biogas production affected agricultural and land markets significantly. This paper provides insights in effects of biogas production on farms and farm structures for the period 2012-2026 in two German regions by using the agent-based simulation model AgriPoliS. We compare the agricultural development in both regions under alternative policy scenarios in order to analyze the effects of biogas production and the impact of the latest amendment in the REA in 2014. Our results show that biogas production provides especially for large farms a profitable income opportunity. However, it implies an increasing dependency of these farms on biogas production and their whole production structures change. Due to an increased competition among farms, rental prices rise. This effect threatens particularly smaller biogas farms. The last amendment of the REA in 2014 with a substantial reduction of the support level attenuates partly some of these effects.

Suggested Citation

  • Appel, Franziska & Ostermeyer-Wiethaup, Arlette & Balmann, Alfons, 2015. "Effects of the Renewable Energy Act on structural change in Agriculture- The case of biogas," 2015 Conference, August 9-14, 2015, Milan, Italy 210956, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:210956
    DOI: 10.22004/ag.econ.210956
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    References listed on IDEAS

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    1. Happe, Kathrin & Balmann, Alfons & Kellermann, Konrad & Sahrbacher, Christoph, 2008. "Does structure matter? The impact of switching the agricultural policy regime on farm structures," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 431-444, August.
    2. Christoph Sahrbacher & Amanda Sahrbacher & Alfons Balmann & Arlette Ostermeyer & Franziska Schoenau, 2012. "Capping Direct Payments in the CAP: Another Paper Tiger? Plafonnement des aides directes: simple tigre de papier? Kappung der Direktzahlungen: Noch ein Papiertiger?," EuroChoices, The Agricultural Economics Society, vol. 11(3), pages 10-15, December.
    3. Happe, Kathrin, 2004. "Agricultural policies and farm structures: Agent-based modelling and application to EU-policy reform," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 30, number 14945, September.
    4. Kathrin Happe, 2005. "Agricultural policies and farm structures - agent-based simulation and application to EU-policy reform," Others 0504011, University Library of Munich, Germany.
    5. Habermann, Hendrik & Breustedt, Gunnar, 2011. "Einfluss der Biogaserzeugung auf landwirtschaftliche Pachtpreise in Deutschland," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 60(02), pages 1-16, May.
    6. Habermann, Hendrik & Breustedt, Gunnar, 2011. "Einfluss der Biogaserzeugung auf landwirtschaftliche Pachtpreise in Deutschland," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 60(2).
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    Cited by:

    1. Heinrich, Florian & Appel, Franziska & Balmann, Alfons, 2019. "Can land market regulations fulfill their promises?," FORLand Working Papers 12 (2019), Humboldt University Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets – Efficiency and Regulation".
    2. Brémond, Ulysse & de Buyer, Raphaëlle & Steyer, Jean-Philippe & Bernet, Nicolas & Carrere, Hélène, 2018. "Biological pretreatments of biomass for improving biogas production: an overview from lab scale to full-scale," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 583-604.
    3. De Clercq, Djavan & Wen, Zongguo & Gottfried, Oliver & Schmidt, Franziska & Fei, Fan, 2017. "A review of global strategies promoting the conversion of food waste to bioenergy via anaerobic digestion," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 204-221.
    4. Alexandra Pehlken & Kalle Wulf & Kevin Grecksch & Thomas Klenke & Nina Tsydenova, 2020. "More Sustainable Bioenergy by Making Use of Regional Alternative Biomass?," Sustainability, MDPI, vol. 12(19), pages 1-22, September.
    5. Iván García Kerdan & Sara Giarola & Ellis Skinner & Marin Tuleu & Adam Hawkes, 2020. "Modelling Future Agricultural Mechanisation of Major Crops in China: An Assessment of Energy Demand, Land Use and Emissions," Energies, MDPI, vol. 13(24), pages 1-31, December.
    6. Olena Myrna & Martin Odening & Matthias Ritter, 2019. "The Influence of Wind Energy and Biogas on Farmland Prices," Land, MDPI, vol. 8(1), pages 1-14, January.
    7. Mohrmann, Sören & Steins, Aaron & Schaper, Christian, 2021. "Erfolgsfaktoren und Zukunftsaussichten für eine wirtschaftliche Biogasproduktion in Deutschland - Ergebnisse einer qualitativen Inhaltsanalyse," 61st Annual Conference, Berlin, Germany, September 22-24, 2021 317072, German Association of Agricultural Economists (GEWISOLA).
    8. Stelios Rozakis & Andrea Bartoli & Jacek Dach & Anna Jędrejek & Alina Kowalczyk-Juśko & Łukasz Mamica & Patrycja Pochwatka & Rafał Pudelko & Kesheng Shu, 2021. "Policy Impact on Regional Biogas Using a Modular Modeling Tool," Energies, MDPI, vol. 14(13), pages 1-21, June.
    9. Xueqing Yang & Yang Liu & Mei Wang & Alberto Bezama & Daniela Thrän, 2021. "Identifying the Necessities of Regional-Based Analysis to Study Germany’s Biogas Production Development under Energy Transition," Land, MDPI, vol. 10(2), pages 1-20, February.
    10. Cord-Friedrich von Hobe & Marius Michels & Oliver Musshoff, 2021. "German Farmers’ Perspectives on Price Drivers in Agricultural Land Rental Markets—A Combination of a Systematic Literature Review and Survey Results," Land, MDPI, vol. 10(2), pages 1-22, February.

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