Horticulture is of great economic importance in Europe, as demonstrated by large production value and many employment opportunities (Bogers, 2007). Since sustainability and reduction of energy use and carbon-dioxide (CO2) emissions are key issues in society, national and supranational (EU) governments come with policies, which have to reduce energy use and increase sustainable energy measures. The greenhouse horticulture sector is the most energy-intensive agricultural sector, and therefore authorities force the sector to search for energy saving options and sustainable energy innovations. In addition, the greenhouse sector gets strong pressure from the retail chains nowadays. Due to increasing retail concentration (market power), and a rapidly changing competitive environment in the food manufacturing and retail sector, it is expected that farmers and processors suffer from the exertion of market power by retailers (Anders, 2005; Sexton and Lavoie, 2001; Bogers, 2007).
To maintain the strong international position of the Dutch greenhouse sector, the sector has to tackle these two changes in the market conditions and governmental policies. They may have major implications for pricing on input and output markets in the greenhouse supply chain indeed and, as a result, may lead to changes in production and (international) trade patterns. The present proposal set outs a research strategy and aims to investigate and quantify the possible effects of these two major developments for the Dutch greenhouse sector. Since micro-economic models are a powerful tool in analysing agricultural policies and their impact on market variables and the sector, the present study wants to design a partial equilibrium model suitable for policy analysis and changes in the greenhouse horticulture sector. This model focuses on the products tomatoes, peppers, cucumbers, flowers and pot plants. It will identify impacts of upcoming (national or supranational) agricultural policies with respect to CO2 emission trade system and energy tax in the European greenhouse sector and the impact of the growing influence of the retail sector. These impacts regard changes in production, trade, prices, and therefore changes in buying behavior of the selected products. |
