Reconciling the micro‐ and macro‐perspective in agricultural energy efficiency analysis for sustainable development

Abstract

AbstractEfficient use of energy resources is the key element ensuring the development of the agricultural sector in a sustainable way. The reduction of energy use in Lithuania's agriculture is considered in strategic documents, and the energy efficiency is seen as crucial element of development for ensuring climate neutrality and eventually reaching climate‐smart agriculture. At the same time, the energy use is supported in terms of excise duty relief for fuel used in agricultural activities. Setting reasonable policy targets requires an integrated approach towards energy efficiency. The aim of the paper is to investigate the energy intensity and efficiency in Lithuanian farms across different farming types and to perform the energy intensity in the European Union (EU) context. Four energy intensity indicators were chosen, and based on these indicators, the energy performance score is constructed using the simple additive weighting method. The data envelopment analysis is applied to identify the policy targets for improving energy efficiency at different levels. Lithuanian farm accountancy data (FADN) of family farms and the standard results of the EU FADN were used in the research for the period of 2004–2019 and 2004–2018, respectively. The analysis revealed that the managerial efficiency levels are lower technological gaps in farms indicating on‐farm innovations being a major issue to improve energy efficiency. The results showed that energy costs can be reduced by some 49%, 48%, 37%, 30% and 20% in Lithuanian cereals, oilseeds and protein crops (COP), milk, field crops, cattle and orchards‐fruit farms, respectively.