Energy consumption across European Union farms: Efficiency in terms of farming output and utilized agricultural area

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Energy consumption is a global concern, namely due to the limited availability of energy sources and the consequences in terms of gas emissions, with its implications upon greenhouse gas emissions. In the agricultural sector this question bears an additional concern, considering that it is an economic activity which is sensitive to the dimension of the costs associated with production factors. In this way, the objective of the study presented here is to analyze, the efficiency of energy consumption, for the twelve former European Union countries, at farm level, in terms of farming output and utilized agricultural area, over the period 1989–2009 and for the years 2004–2012, with data available in the Farm Accountancy Data Network. On the other hand, the implications of energy consumption in farms' economic performance were analyzed, through econometric techniques (time series, panel data and generalized method of moments) and models based on the Kaldor developments. As a main conclusion, to stress the decrease in efficiency related with energy consumption by farms in the twelve former European Union countries.