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Energy Economics in Agriculture

Course developer

Prior knowledge

Ener6001, Alternative Energetics

Course abstract

The aim of the course is to analyze the peculiarities of energy supply of agricultural production objects, taking into account the involvement of biological objects in the production process. Students acquire the principles of agriculture production management strategic approach by analyzing the processes affecting the energy market. They will learn the principles of energy prices formation, affecting the production and processing of agricultural products and rational use of energy.

Learning outcomes and their assessment

1. Knowledge - about the economic aspects of the energy sector, and the impact of energy on agricultural production - theoretical and practical aspects. Knowledge are assessed through practical works and independent works (home assignments);
2. Skills - to assess the technical, technological, social and commercial aspects of energy projects related to agricultural production, linking them with financial and economic factors. Skills are assessed through practical works and independent works (home asignments), as well as in a summary presentation;

3. Competence - economic impact assessment of energy projects related to agricultural production. Competences are assessed in practical and independent works, as well as in a summary presentation, especially in the discussion section.

Course Content(Calendar)

1. Energy sector, its place in the national economy, impact on agriculture - 2h
2. Principle of sustainable development in energy and agriculture - 2h
3. Supply and demand in energy and agriculture, price formation - 2h
4. Consumers behavior in the energy sector - individuals and business - 2h
5. Energy production - centralized, decentralized, autonomous - 2h
6. Energy production - resources, processes, transmission, distribution - 2h
7. Energy production and costs - traditional production, alternative energy sources -2h
8. Competition in energy branch, its impact on agricultural production - 2h
9. Monopolistic competition, its impact on energy and agricultural production - 2h
10. Oligopolies and vertical integration, their impact on energy and agricultural production - 2h
11. Capital market and energy interaction - inflation, value for money, credit resources, investments, derivatives, future / forward market - 4h,
12. Capital market and energy interaction – stock/resources exchange - 2h
13. Financial indicators characterizing the company's activity, their application in energy impact assessment - 4 h

14. Trends in energy and agriculture in Latvia and in the world - new trends - 2h

Requirements for awarding credit points

Positive grade if:

4 practical works and 2 independent works were handed over (sent, uploaded to the e-learning environment), as well as an individual presentation - defense of the summary of practical works was made.

Description of the organization and tasks of students’ independent work

Practical works:
1. Use of energy resources in agricultural production
2. Characteristics of energy consumers - peculiarities of the sector
3. Competition in energy - the company's point of view
4. The use of capital market tools in the company's energy supply - the company's point of view

Independent works:
1. Influence of energy development tendencies on production - analysis of a specific (student’s choice) company's activity
2. Economic and financial impact of energy on the company's operations - assessment of financial and economic indicators for a particular company

3. Summarizing presentation - defense with discussion

Criteria for Evaluating Learning Outcomes

Each practical and individual assignment handed in.(no positive final grade if any of them is missed).
Share of submitted works in the final evaluation:
1. Each practical work - 10% (40% in total);
2. Each independent work - 20% (total 40%);
3. Summary presentation of independent works - defense - 20%.

Positive grade if at least 40% obtained.

Compulsory reading

1. Roosa S.A., Doty S., Turner W.C. Energy Management Handbook.River Publishers; 9th edition (2018), 893 p.

2. Atjaunojamā enerģija un tās efektīva izmantošana Latvijā : monogrāfija. Jelgava, Latvijas Lauksaimniecības universitāte, 2012. 392 lpp.

Further reading

1. Introduction Of Energy Saving Principles: Technologies And Awareness, Latvian Experience Mutule A ; Teremranova J, Latvian journal of physics and technical sciences, 01 December 2018, Vol.55(6), pp.52-62

2. Guide to energy management/by Barney L. Capehart, Wayne C. Turner, William J. Kennedy - 8th ed.

Periodicals and other sources

Lauksaimnieciskās ražošanas un energoapgādes uzņēmumu gada pārskati

Notes

Compulsory for Master study program “Agriculture engineering” subprogram ”Agriculture energetics”