Net Surplus Research Articles

Effects of short-term exercise and energy surplus on hormones related to regulation of energy balance

Energy surplus raises circulating concentrations of leptin and insulin while lowering plasma ghrelin. Exercise has the opposite effects. The purpose of this study was to determine whether exercise counters the hormonal effects of energy surplus independent of changes in energy balance. To do that, we assessed plasma concentrations of leptin, insulin, and ghrelin at baseline, after overfeeding, and after overfeeding plus exercise. Baseline (B) leptin and insulin concentrations and ghrelin area under the curve were measured during an oral glucose challenge in 9 healthy, active subjects (6 male, 3 female) after 2 days in energy balance without exercise. Measurements were repeated after subjects were overfed by +3213 ± 849 kJ/d for 3 more sedentary days (OF). In the third condition, the same net energy surplus (+3125 ± 933 kJ/d) was generated for 24 hours by doubling the overfeeding (+6284 ± 1669 kJ/d) and countering it with a bout of exercise (expenditure = 3063 ± 803 kJ); and measurements were made the next day (OF + EX). Compared with B, leptin went up (5.8 ± 8.2 to 7.6 ± 10.6 ng/mL) after OF, but was not significantly higher after OF + EX (7.1 ± 10.2 ng/mL). Compared with B, insulin was +36% and +43% higher after OF and OF + EX, respectively. In contrast, ghrelin area under the curve did not change after OF but was significantly lower (−14%) than B or OF after OF + EX (indicating greater suppression). These data suggest that the effect of short-term exercise on fasting leptin and insulin depends on energy balance but the ghrelin response may be partially mediated by effects of exercise independent of energy balance.

Does Immigration Raise Natives Income? National and Regional Evidence from Spain

How immigration affects the labor market of the host country is a topic of major concern for many immigrant-receiving nations. Spain is no exception following the rapid increase in immigrant flows experienced over the past decade. We assess the impact of immigration on Spanish natives’ income by estimating the net immigration surplus accruing at the national level and at high immigrant-receiving regions while taking into account the imperfect substitutability of immigrant and native labor. Specifically, using information on the occupational densities of immigrants and natives of different skill levels, we develop a mapping of immigrant-to-native self-reported skills that reveals the combination of natives across skills that would be equivalent to an immigrant of a given self-reported skill level, which we use to account for any differences between immigrant self-reported skill levels and their effective skills according to the Spanish labor market. We find that the immigrant surplus amounts to 0.04 percent of GDP at the national level and it is even higher for some of the main immigrant-receiving regions, such as Cataluna, Valencia, Madrid, and Murcia.

Using energy pricing as a tool for efficient, equitable and sustainable use of groundwater for irrigation: evidence from three locations of India

This paper analyzes the potential impacts of energy pricing on efficiency, equity and sustainability in groundwater use. The analysis uses empirical data on water productivity in agriculture for crops, dairying and farms for north Gujarat, east US and south Bihar. For north Gujarat, the analysis uses data from well owners who pay flat rate tariff, and well owners who pay pro-rata tariff. For eastern UP and south Bihar, the analysis uses data from well owners and water buyers from diesel and electric well commands. The analysis also compares data from diesel well owners and electric well owners in south Bihar. The findings are as follows: Introducing marginal cost for electricity motivates farmers to use water more efficiently at the farm level through careful use of irrigation water; use of better agronomic inputs; optimize costly inputs; optimize livestock composition and carefully select crops and cropping patterns, which give higher return from every unit of water and grow low water consuming crops. It also shows that higher cost of irrigation water (because of higher energy cost) will not lower net return from every unit of water used as the farmers will modify their farming system accordingly. Further, change in the structure of power tariff from flat rate to pro-rata will not have any adverse effects on access and equity in groundwater use. Nor will it increase the monopoly power of well owners. The number of potential water sellers and not the number of potential buyers of water govern the price of water. Pro-rata pricing reduces cost of groundwater pumping per unit of land. It also reduces aggregate pumping, which is disproportionately higher than the reduction in net returns per unit of land. This leads to more sustainable groundwater use. This means that in water scarce regions, it would be possible for farmers to maintain net farm surpluses at higher energy tariff by improving productivity of water use. The empirical evidence further reinforces that the arguments against pro-rata pricing are flawed. Raising power tariff in the farm sector to achieve efficiency, equity and sustainability in groundwater use is socially and economically viable.

On the Profit Neutrality of Access Charges in Network Competition

This note demonstrates that the puzzling profit neutrality of access charges, i.e., the networks' profits are independent of the access charge with two-part call tariffs, depends crucially on a specific property of subscription demand. Profit neutrality is equivalent to the subscription elasticity being proportional to consumer net surplus at symmetric prices. The standard formulations of subscription demand - the Hotelling, the circular city and the random utility model - all display this feature. However, the proportionality can be broken by means of a simple transformation of subscription utility.

Rights of First Refusal

This paper analyzes rights of first refusal and rights of first offer in a multiple-buyer, sequential bargaining setting. A right of first refusal entitles the right-holder to purchase a subject asset on the same terms as those accepted by a third party. A right of first offer requires a seller to first offer the right-holder to buy a subject asset and prohibits the seller from subsequently selling the asset to a third party on better terms than those offered to the right-holder. We examine when and how such rights yield benefits to, or impose costs, on the right-holder and the seller. We show that a right of first refusal transfers value from other buyers to the right-holder, but may also force the seller to make suboptimal offers. A right of first offer induces the seller to lower his first-period offer, which will tend to increase the net surplus to the seller and right-holder, but also forces the seller to make suboptimal subsequent offers. We find conditions under which it is in the ex ante interest of the seller and the right-holder to contract for a right of first refusal or a right of first offer, respectively.

Holistic emergy analysis of Macao

Cities rely on ecosystems beyond their limits to provide natural resources that are unavailable within their boundaries, and this reliance increases as cities grow. With its development, Macao is changing from a city based primarily on consumption of natural resources to one supported mainly by the gambling and tourism industry. As a result, Macao has recently experienced an economic boom and rapid social development. This paper adopts the emergy analysis method to evaluate the sustainability of Macao's exchange processes in 2004 with respect to the life-support systems outside the city, tourism, and waste treatment processes. Tourism emergy was estimated using the proportional approach, waste emergy synthesis was expanded to include labor and waste treatment services, and Macao's trading partners were divided into China and “other regions” to produce more accurate results. In 2004, imported emergy equaled 241.95 × 10 20 sej, versus exported production equaling 137.23 × 10 20 sej and service exports equaling 42.70 × 10 20 sej. The gambling and tourism industry earned US$ 8.10 billion in 2004, and with a purchasing power of 211.53 × 10 20 sej, it is the largest source for sustaining Macao's dissipative structure. Since sustainability combines social, economic, and ecological factors, a single emergy index cannot measure sustainability adequately. By expanding Odum and Brown's net emergy surplus concept, we developed two aggregated emergy-based indicators: net emergy (NE) and the net emergy ratio (NER). These indicators more accurately reflect the development condition of the city. In addition, we used published data to compare Macao's emergy-based indices with those of four selected cities.

What Explains the US Net Income Balance?

Despite a significant deterioration in the US net foreign asset position, there has not been a corresponding deterioration in the net income balance. In fact, there has generally been a net income surplus. Two factors have been particularly important for the positive net income balance over the past 15 years or so. The first is that the United States has a positive net external equity balance and a negative net external debt balance. This contributes to a net income surplus because the income yield on equity has been higher than the income yield on debt. The second factor is that the United States earns a persistently higher income yield on its foreign direct investment (FDI) assets than foreigners earn on their direct investments in the United States. This paper summarises the evidence from firm-level studies and time-series data for the United States, as well as cross-country comparisons, to weigh up alternative explanations for this outcome. The evidence presented suggests that differences in income yields on FDI are not explained by the presence of large stocks of unmeasured assets. Moreover, they do not appear to be related to different characteristics of the investment such as industry composition or riskiness. There is some evidence that differences in the average maturity of investment have had some effect on yield differentials, especially in the 1980s. There are also incentives to minimise taxes that are consistent with the relatively low income yields earned on FDI in the United States, but no firm evidence that this is an important explanation.

Costly enforcement of property rights and the Coase theorem

We examine a setting in which property rights are initially ambiguously defined. Whether the parties go to court to remove the ambiguity or bargain and settle privately, they incur enforcement costs. When the parties bargain, a version of the Coase theorem holds. Despite the additional costs of going to court, other ex post inefficiencies, and the absence of incomplete information, however, going to court may be an equilibrium or ex ante Pareto-superior over settlement; this is especially true in dynamic settings whereby a court decision saves on future enforcement costs. When the parties do not negotiate and go to court the Coase theorem ceases to hold, and a simple rule for the initial assignment of rights maximizes net surplus. (JEL C70, K40)

Disclosure Effectiveness: Evidence from the Field

Field-based experiment are used to examine whether variations in pension fund accounting information affects pension members' investment judgments. Disclosure effectiveness is defined as the strength of making an additional voluntary contribution on the basis of pension fund annual reports containing variations in both news favorableness (defined in terms of either funding or investment risk) and environmental complexity. Environmental complexity in turn is defined in terms of variations in both data load (reflecting different mixes of financial and non-financial information contained in public sector or private sector sponsored pension fund accounts) and information load (statement of net assets plus footnote of pension funding ratio, or balance sheet showing net surplus or deficit). Individual pension plan members' investment judgments are found to be sensitive to environmental complexity. The results support the argument that disclosure effectiveness is enhanced by providing more extensive financial information for pension plan members as is presently required for shareholder reporting under UK GAAP.Our empirical results are supported by supplemental analysis and policy recommendations.

Identification of frequency changes in synoptic circulation types and consequences for glacier mass balance in Norway

The cumulative net mass balances of maritime glaciers in Norway display a net surplus during the period 1963–2000. The article seeks to establish the causal mechanisms that resulted in the positive net balances occurring on Norwegian maritime glaciers. To achieve this, a Temporal Synoptic Index (TSI) was derived for a 30-year period for a number of synoptic meteorological stations in Norway. The TSI is derived using Principal Components Analysis (PCA) and subsequent clustering of component scores to classify days for both winter and summer seasons. Findings indicate that the occurrence of ‘warm’ type air masses during the summer months have increased in frequency, particularly since the late 1980s. A reduction in the frequency of ‘cold’ cluster types during the winter months is evident after this period, while the frequency of ‘warm’ types, with an increased moisture carrying capacity, has increased in frequency. The frequency occurrence of these key air mass types is shown to be significantly related to glacier mass balance during both the accumulation and ablation season. Winter air mass types from maritime source regions act to enhance accumulation and suppress ablation, while summer continental source types suppress accumulation and enhance ablation.

Sulfur based hazardous waste solidification

Existing uses for sulfur are relatively advanced and offer limited opportunities to consume significant new supplies. Currently, sulfur is in net surplus on a global basis, and with environmental regulations, greater sulfur recovery from petroleum and gas processing is mandated. The outlook is clear: there will be substantial and growing surpluses in global sulfur supply in the foreseeable future. Sulfur prices are likely to be under pressure, and producers could face substantial and growing disposal fees. Therefore, new markets must be found for sulfur to avoid disposal crises. One potential new market is the production of sulfur-solidified concrete. This is a thermoplastic composite of mineral aggregates bound together with chemically modified sulfur. The product is more durable than Portland cement. There may be monetizeable benefits in reducing greenhouse gas emissions that would enhance the attraction of sulfur solidified cement applications. The main objective of this study is to evaluate experimentally the potential use of sulfur as a solidifying agent for hazardous waste. To achieve this objective, the study reviewed the sulfur concrete literature, analyzed locally produced sulfur, evaluated a number of sulfur polymer modifiers and physical stabilizing agents, designed a set of experiments and evaluated the produced product for its hydro-mechanical-chemical properties. The results indicated that the manufactured sulfur polymer cement is an excellent candidate for: waste management practices such as solidification/stabilization of hazardous waste; barrier systems for landfilling of hazardous waste; and waste water treatment plants.

Constraints on oceanic N balance/imbalance from sedimentary <sup>15</sup>N records

Abstract. According to current best estimates, the modern ocean's N cycle is in severe deficit. N isotope budgeting provides an independent geochemical constraint in this regard as well as the only means for past reconstruction. Overall, it is the relative proportion of N2 fixation consumed by water column denitrification that sets average oceanic δ15N under steady-state conditions. Several factors (conversion of organic N to N2, Rayleigh closed and open system effects) likely reduce the effective fractionation factor (ε) for water column denitrification to about half the inherent microbial value for εden. If so, the average oceanic δ15N of ~5‰ is consistent with a canonical contribution from water column denitrification of 50% of the source flux from N2 fixation. If an imbalance in oceanic N sources and sinks changes this proportion then a transient in average oceanic δ15N would occur. Using a simple model, changing water column denitrification by ±30% or N2 fixation by ±15% produces detectable (>1‰) changes in average oceanic δ15N over one residence time period or more with corresponding changes in oceanic N inventory. Changing sedimentary denitrification produces no change in δ15N but does change N inventory. Sediment δ15N records from sites thought to be sensitive to oceanic average δ15N all show no detectible change over the last 3 kyr or so implying a balanced marine N budget over the latest Holocene. A mismatch in time scales is the most likely meaningful interpretation of the apparent conflict with modern flux estimates. Decadal to centennial scale oscillations between net N deficit and net surplus may occur but on the N residence timescale of several thousand years, net balance is achieved in sum. However, sediment δ15N records from the literature covering the period since the last glacial maximum show excursions of up to several ‰ that are consistent with sustained N deficit during the deglaciation followed by readjustment and establishment of balance in the early Holocene. Since imbalance was sustained for one N residence time period or longer, excursions in ocean N inventory of 10 to 30% likely occurred. The climatic and oceanographic changes that occurred over this period evidently overcame, for a time, the capacity of ocean biogeochemistry to maintain N balance.

Theories of behavior in principal–agent relationships with hidden action

In a laboratory experiment, we investigate behavior in a principal–agent situation with moral hazard. We evaluate the predictive success of two theories. One is the standard agency theory, which assumes that the agent will accept any contract offer that satisfies his participation constraint, typically requiring zero expected utility. The other is the “fair-offer” theory suggested by Keser and Willinger [2000. Principals’ principles when agents’ actions are hidden. International Journal of Industrial Organization 18 (1), 163–185], which requires that the principal provide full insurance against losses to the agent and leave him a share of at most 50% of the generated surplus. The treatment variable of our experiment is the cost of effort. As effort costs increase, expected net surplus of a contract decreases. We observe that fair-offer theory generally predicts observed contract offers better than standard agency theory. However, the predictive success of the fair-offer theory decreases, while the one of standard agency theory increases with decreasing expected net surplus.

Multilevel genomics analysis of carbon signalling during low carbon availability: coordinating the supply and utilisation of carbon in a fluctuating environment.

Plants alternate between a net surplus of carbon in the light and a net deficit at night. This is buffered by accumulating starch in the light and degrading it at night. Enough starch is accumulated to support degradation throughout the night, with a small amount remaining at the end of the 24-h diurnal cycle. This review discusses how this balance between the supply and utilisation of carbon is achieved in Arabidopsis. It is important to regulate starch turnover to avoid an acute carbon deficiency. A 2-4 h extension of the night leads to exhaustion of starch, a collapse of sugars, a switch from biosynthesis to catabolism and an acute inhibition of growth by low carbon, which is not immediately reversed when carbon becomes available again. In starchless pgm mutants, where sugars are depleted each night, this leads to a recurring inhibition of growth that is not reversed until 5-6 h into the following light period. Several lines of evidence show that starch accumulation is regulated in response to events that are initiated during periods of low carbon. Starch accumulation is decreased when small amounts of sucrose are included in the growth medium. Sets of sugar-responsive genes were identified by supplying sugars to carbon-starved seedlings, or by illuminating 5-week-old plants in the presence of 350 or 50 ppm [CO2]. Almost all of these genes show large diurnal changes in starchless pgm mutants, which are driven by the depletion of carbon during the night. Many show significant diurnal changes in wild type plants, showing that 'anticipatory' changes in signalling pathways occur before acute carbon limitation develops. However, these diurnal changes of transcripts do not lead to immediate changes of enzyme activities. Whereas an extension of the night leads to major changes of transcripts within 4-6 h, changes in enzyme activities require several days. In pgm, enzyme activities and the levels of >150 metabolites resemble those found in wild type plants after several days in the dark. It is concluded that diurnal changes in transcript levels are integrated, over days, as changes in the levels of enzymes. We hypothesise that this facilitates an adjustment of metabolism to a mid-term shift in the conditions, while ignoring noise due to diurnal changes and day-to-day fluctuations. The rapid adjustment of starch synthesis after a period of acute carbon depletion is a consequence of the transient inhibition of growth. This leads to accumulation of sugars when carbon becomes available again, which triggers a large increase in trehalose-6-phosphate. This signal metabolite promotes thioredoxin-dependent post-translational activation of ADP glucose pyrophosphorylase. Mid-term acclimation to a decreased carbon supply may be mediated by a combination of post-translational regulation, longer-term changes in enzyme activities, and a decrease in the rate of growth.

Estimating consumer surplus in the mobile telecommunications market: The case of Korea

This paper estimates consumer surplus in the Korean mobile telephone services (MTS) market. The Korean mobile telecommunications market has grown rapidly since 1997 when competition was introduced and Code Division Multiple Access (CDMA) technology was commercialized. Because consumer surplus is relevant to the controversy over establishing an appropriate price level between consumers and service providers, the need for a robust measurement of benefit from MTS is increasing. The measured net consumer surplus estimated by means of elasticities of demand reached about US$48.8 billion in the period 1996–2004 and the changes amounted to about US$8.8 billion during the same period. In particular, after competition was introduced into the market with an accompanying price decrease and increase in the number of subscribers, consumers have benefited greatly. Therefore, it can be inferred that a facility-based competition policy and the reduction in price of access such as handset subsidies all played a positive role in the early diffusion of MTS in Korea. The estimated consumer surplus in this paper does not include network externality (option externality); if this were considered, the total social welfare of the consumer would be larger.

Acute effects of knowledge-based work on feeding behavior and energy intake

The aim of this study was to evaluate the impact of knowledge-based work (KBW) on feeding behavior and spontaneous energy intake with the use of a repeated measures/within-subjects design. We used a two-session protocol including an ad libitum buffet preceded by either rest in a sitting position for 45 min or a cognitive task (reading a document and writing a summary of 350 words using a computer) over the same time period. In this regard, 15 healthy Laval University female students (mean age = 24.1 ± 2.2 years, mean BMI = 24.0 ± 4.3 kg/m 2) were recruited to participate in this study. Anthropometric variables, energy expenditure, heart rate, blood pressure, food intake (dietary record), and appetite sensation markers were measured at each testing session, and two questionnaires [Three-Factor Eating Questionnaire (TFEQ) and State–Trait Anxiety Inventory (STAI)] were administered. In addition, a buffet-type meal was used to measure spontaneous energy intake and macronutrient preferences. We found that the mean energy expenditure of the two conditions was about comparable (difference of 13 kJ between the two tasks) whereas the mean ad libitum energy intake after the KBW task exceeded that measured after rest by 959 kJ ( p < 0.01). Although a higher absolute energy intake was observed for the three macronutrients after the KBW task ( p < 0.05), no specific preference was detected, as reflected by the comparable percent of energy from each macronutrient in the two conditions. No significant difference in appetite sensation markers was observed between the two conditions, although the subjects ate more in the buffet-type meal after the KBW task. Furthermore, the subjects did not compensate by decreasing food intake for the rest of the day, suggesting a net caloric surplus. We also observed negative correlations between cognitive dietary restraint (TFEQ) and spontaneous energy intake in both conditions. In conclusion, our results demonstrate that mental work solicited by KBW has the potential to induce a higher spontaneous energy intake. This also raises the possibility that KBW adds a new component to sedentariness that might further accentuate the positive energy balance that is more likely to occur when one is inactive.

Nitrogen Use Efficiency in an 11-Year Study of Conventional and Organic Wheat Cultivation

Resource conservation with respect to nitrogen (N) was compared in organic and conventional cultivation of winter and spring wheat. Sustainability was measured in the nitrogen use efficiency of plant‐available N. The amounts of N entering each system and the amounts removed in the harvested crop and remaining as unused mineral nitrogen in the soil at harvest were determined. Net surpluses and losses during the growing season were also monitored, and the environmental variables influencing N harvest in the different cultivation systems were identified. The study was carried out in three different cultivation systems: conventional animal production (CONV), organic animal production (ORG1), and organic cereal production (ORG2). On average for all years and sampling occasions in winter wheat, there were approximately 60 kg more mineral nitrogen left in the soil during the growing season in CONV than in ORG1, and coefficients of variation were higher in CONV. The maximum values were considerably higher in CONV than in ORG1 (p=0.06–0.09), which increased the risk of leaching in the former, particularly in winter wheat cultivation. Nitrogen use efficiency in winter and spring wheat cultivation was 74% in whole crop conventional winter wheat and 81% in organic. Nitrogen use efficiency in harvested winter wheat grain was 44% for CONV and 49% for ORG1. ORG1 spring wheat was as efficient as ORG1 winter wheat, whereas ORG2 spring wheat used 73% of N in the whole crop and 39% in grain. Multivariate regression analysis showed that climate affected CONV and ORG1 winter wheat differently. High temperature in May increased grain yields in ORG1, but the converse was true for CONV. Large unused mineral N reserves at harvest coincided with large N harvest in CONV winter wheat. Residual fertility effects from the preceding crop produced high yields in ORG1 winter and spring wheat but had no effect in CONV. Generally, an increase in N reserves between plant development stages 13 and 31 was positive for both CONV and ORG1 winter wheat. Both winter and spring wheat require most N during this period, so the potential for improvement seems to lie in increasing mineralization (e.g., by intensified weed harrowing early in stage 13 in winter wheat and between stages 13 and 31 in spring wheat). Cultivation of winter wheat in ORG1 was a more efficient use of nitrogen resources than CONV. CONV efficiency could be improved by precision fertilization on each individual field with the help of N analysis before spring tillage and sensor‐controlled fertilization.

Equity effects of congestion pricing: Quantitative methodology and a case study for Stockholm

It is widely recognised that congestion pricing could be an effective measure to solve environmental and congestion problems in urban areas—a reform that normally also would generate a net welfare surplus. Despite this the implementation of congestion pricing has been very slow. One reason for a low public and political acceptance could be that equity impacts have not been given enough concern. In studies of distributional impacts of congestion pricing it has often been claimed that the reform is regressive rather than progressive even if there are studies claiming the opposite. We develop a method for detailed, quantitative assessment of equity effects of road pricing and apply it to a real-world example, namely a proposed congestion-charging scheme for Stockholm. The method simultaneously takes into account differences in travel behaviour, in preferences (such as values of time) and in supply of travel possibilities (car ownership, public transport level-of-service etc.). We conclude that the two most important factors for the net impact of congestion pricing are the initial travel patterns and how revenues are used. Differences in these respects dwarf differences in other factors such as values of time. This is accentuated by the fact that the total collected charges are more than three times as large as the net benefits. With respect to different groups, we find that men, high-income groups and residents in the central parts of the city will be affected the most. If revenues are used for improving public transport, this will benefit women and low-income groups the most. If revenues are used for tax cuts, the net benefits will be about equal for men and women on the average, while it naturally will benefit high-income groups. Given that it is likely that the revenues will be used to some extent to improve the public transport system, we conclude that the proposed congestion-charging scheme for Stockholm is progressive rather than regressive.

Assuring fish safety and quality in international fish trade

International trade in fishery commodities reached US$ 58.2 billion in 2002, a 5% improvement relative to 2000 and a 45% increase over 1992 levels. Within this global trade, developing countries registered a net trade surplus of US$ 17.4 billion in 2002 and accounted for almost 50% by value and 55% of fish exports by volume. This globalization of fish trade, coupled with technological developments in food production, handling, processing and distribution, and the increasing awareness and demand of consumers for safe and high quality food have put food safety and quality assurance high in public awareness and a priority for many governments. Consequently, many countries have tightened food safety controls, imposing additional costs and requirements on imports. As early as 1980, there was an international drive towards adopting preventative HACCP-based safety and quality systems. More recently, there has been a growing awareness of the importance of an integrated, multidisciplinary approach to food safety and quality throughout the entire food chain. Implementation of this approach requires an enabling policy and regulatory environment at national and international levels with clearly defined rules and standards, establishment of appropriate food control systems and programmes at national and local levels, and provision of appropriate training and capacity building. This paper discusses the international framework for fish safety and quality, with particular emphasis on the United Nation’s Food and Agricultural Organization’s (FAO) strategy to promote international harmonization and capacity building.

Conserving energy in smallholder agriculture: A multi-objective programming case-study of northwest India

In semi-arid conditions in Northwest India, smallholder agriculture has made increasing use of subsidised mechanisation and energy inputs to reduce short-term risks. However, detrimental environmental consequences have occurred, not least a rapidly falling water table, and energy-intensive production is threatened by the prospect of increasing scarcity and expense of energy supplies, especially as urban demands are forecast to grow rapidly. This paper describes the energy flows through four subsystems of smallholder agricultural villages: the crop system; non-crop land uses; livestock systems; and households. It employs a multi-objective programming model to demonstrate choices available for maximands either of net solar energy capture or financial surpluses. Applied to three villages selected to represent major settlement types in the Saurashtra region of Gujarat, the results demonstrate that both energy conservation and financial performance can be improved. Although these results need qualifying because of the reductionist, linear character of the model used, they do provide important insights into the cultural role of mechanisation and the influence of traditional agricultural practices. They also underline the need for local energy conservation strategies as part of an overall approach to improved self-determination in progress towards rural sustainability.