AGRICULTURE, ENERGY, AND THE ENVIRONMENT



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Please click on the titles below for each speaker's presentation.


 “How Vulnerable Is Agriculture to Higher Energy Prices?”
            David Roland-Holst, UC Berkeley


Rising energy prices pose a renewed challenge to U. S. economic security. A long legacy of low domestic fuel costs has sustained patterns of economic structure and technology adoption that may not be appropriate to future market conditions. This is particularly true in agriculture, where production relies on subsidized energy resources and the sales can be highly dependent on energy-intensive distribution services. In farming, significant and sustained increases in energy cost could induce far-reaching adjustments, yet the base of evidence for understanding our energy price vulnerability is relatively weak. Here we provide a snapshot of the energy price dependence of California agriculture, using a new dataset to estimate how energy costs pass through to producer prices. Our results indicate that vulnerability of California farmers is significant, and there is wide dispersion of energy dependence across the state’s diverse portfolio of farm products. Both these findings imply that farm policy needs to better anticipate energy price impacts on agriculture.

David Roland Holst is an Adjunct Professor in the Department of Agricultural and Resources Economics and Director of the Center for Energy, Resources, and Economic Sustainability (CERES) at the University of California, Berkeley.  Dr. Roland-Holst is one of the world’s leading authorities on economic policy modeling.  He has extensive research experience in economics related to environment, development, agriculture, and international trade, authoring three books and over 80 articles in professional journals and books.  Professor Roland-Holst has served in several academic posts in Europe and the U.S. He also conducted research in over 30 countries, working with many public institutions including a variety of Federal and state agencies, the Asian Development Bank, Inter-American Development Bank, Organization for Economic Cooperation and Development (OECD), World Bank, and several United Nations agencies, as well as governments in Asia, Latin America, Europe, and the U.S. Professor Roland-Holst holds a Ph.D. in Economics from the University of California, Berkeley, and is a U.S. citizen.





    “The Net Energy Content of Ethanol”
        Roger Conway, ERS, U. S. Department of Agriculture


Roger Conway is a native of Virginia and received his B.A. degree in Economics at The George Washington University, his M.A. in Economics at George Mason University, and his Ph.D. in Economics at The George Washington University.  He joined the Economic Research Service (ERS) of the U. S. Department of Agriculture (USDA) in 1978 as an Agricultural Economist specializing in commodity modeling.  In 1985, Roger spent a year with the Bureau of Economic Analysis, U.S. Department of Commerce, as an Econometrician before returning to ERS to become Section Leader of the Productivity and Public Policy Section in the Resources and Technology Division.  In that capacity, Roger led successful program initiatives to redesign the current USDA productivity indices, introduce important recent advances in agricultural production economics into the staff analysis and policymaking process, and evaluate sustainable agricultural production practices.  For his efforts with ERS, Roger has received four ERS Administrator Special Merit Awards.

Roger became Director of what is now called the Office of Energy Policy and New Uses  (OEPNU) in 1990.  As OEPNU’s Director, Roger led many interagency and interdepartmental efforts, presented results of special analysis and technical information and represented policy positions of the Department on a variety of sensitive issues.  He has served as the Department representative for such activities as the Department of Energy’s (DOE) National Energy Strategy, DOE Oil and Gas Initiative, and the White House Bioenergy Initiative. 





    “Water for Food, Energy, and the Environment”
        David Zilberman, UC Berkeley – Giannini Foundation


Higher energy prices will affect agriculture through higher output prices and higher input and transportation costs.  Irrigated agriculture will be especially affected because much of it relies on energy for pumping, conveyance, or desalinization.  High energy prices will increase the cost of groundwater pumping but may worsen groundwater depletion problems.  The cost of subsidization of water will increase, potentially leading to reform.  Specifically, subsidies may be reduced, leading to adoption of water conservation technologies and improved pumps. The price of surface water may decline in regions that produce hydroelectric power, and water use may increase. In other regions relying on energy-dependent conveyance, rising water prices may trigger more efficient pricing and resource use. Biofuel will increase pressure on water systems and may have negative consequences for the poor because of higher food prices.  Adoption of GMO and other supply-enhancing technologies will be essential to reduce the distributional consequences of biofuel introduction.  The integration of agribusiness with the energy sector may lead to increased efficiency of irrigation systems and cross-sectoral transfer of knowledge.  Agricultural and water policies should be more integrated with environmental and energy polices.

David Zilberman is a Professor and holds the Robinson Chair in the Department of Agricultural and Resource Economics at U. C. Berkeley. He is the Director of the Center for Sustainable Resource Development and was the Director of the Giannini Foundation from 2003-2007. David received his B. A. in Economics and Statistics at Tel Aviv University, Israel, and his Ph.D. at the University of California, Berkeley, in 1979. David’s areas of expertise include agricultural and environmental policy; marketing, the economics of innovation, risk, water, pesticides, and biotechnology.  David is a Fellow of the American Agricultural Economics Association (AAEA).  He won the AAEA 2007 Quality of Communication Award and Outstanding Review of Agricultural Economics Article, the AAEA 2005 Publication of Enduring Quality Award, the 2002 Quality of Research Discovery Award, and the 2000 Cannes Water and the Economy Award. David has published over 180 refereed articles in journals ranging form Choices to Science, and edited 10 books.  He has served as a consultant to the World Bank, FAO, USDA, CGIAR, EPA, and CDFA. He served as Department Chair from 1994 to 1999, and was on the boards of the AAEA and C-FARE and on two NRC panels.