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http://dx.doi.org/10.5855/ENERGY.2018.27.3.010

Analysis on the Effect of the Electricity Tariff for Agricultural Use by LMDI Methodolgy  

Moon, Hyejung (Department of Economics, Chungnam National University)
Lee, Kihoon (Department of Economics, Chungnam National University)
Publication Information
Journal of Energy Engineering / v.27, no.3, 2018 , pp. 10-20 More about this Journal
Abstract
Due to cheap electricity tariff on agricultural use, electricity consumption in agricultural sector has grown dramatically. We evaluated the negative effects of the cheap electricity tariff such as electricity over-consumption, increased dependency on electricity, decreased electricity productivity, and unequal distribution of the benefit. We also estimated the effects of agricultral output growth, structural change, and electricity intensity change on sharp electricity consumption increase in agricultural sector between 1998 and 2016 using the Log Mean Divisia Index decomposition method. The findings reinforce the necessity of raising the electricity tariff for agricultural use.
Keywords
agricultural electricity tariff; decomposition; LMDI; electricity tariff policy;
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