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Bioeconomics II

Course developer

Prior knowledge

Ekon2100, Bioeconomics I

Ekon2109, Macroeconomics

VadZ2028, Economic Management Studies

Course abstract

The course provides students with knowledge, develops professional and general skills in identifying the newest trends in the development of bioeconomies at the global and especially European and national scales. The course deals with primary industries – agriculture, forestry, fisheries–, as well as manufacturing and other industries that exploit biotechnologies, thereby sustainable consuming and producing natural, quality, and innovative bioproducts.

Learning outcomes and their assessment

Students will be able to demonstrate:
KNOWLEDGE of
1) the key principles of synergy between agricultural and environmental policies, as well as main possibilities for more complete and efficient use of bioresources in the bioeconomy. Independent work, a test.
2) key indicators for the industries of the bioeconomy and rural development, as well as the factors affecting them. Discussion, an examination.
SKILLS
Professional skills to
1) independently analyse and compare endogenous and exogenous factors affecting the development of bioeconomy sector industries and rural areas as well as assess the sustainable use thereof. Independent work, a case study.
2) identify the principles of and criteria for selection of a proper biotechnology method for the sustainable use of bioresources in producing products. Practical individual/group assignments, a presentation.
Soft skills to
1) identify and analyse the causes of failure, combine, synthesize and interpret the results of the assignments done. Independent work.
2) develop communication skills relevant to the profession. Practical assignments, discussion.
COMPETENCES to

Cooperate and develop their own conclusions and proposals on the effects of agricultural and environmental policies on the bioeconomic sector and rural development as well as methodologically correctly manage and analyse economic processes in bioeconomy sector industries and rural development. Examination.

Course Content(Calendar)

1. Resources used in biomass production
The economics of the demand for and supply of resources (factors of production) (land, capital, investment, labour, information and social capital) used in the bioeconomy industries. Relationships between the markets for products and the factors of production. (1h - lecture, 2h - practicals)
2. Possibilities to increase the output value of products
Product value formation. Farm Accountancy Data Network (FADN). Economic accounts for agriculture (EAA). Bioproducts as commodities, their exports and the benefits thereof. Agricultural processing opportunities in Latvia, the exports of processed agricultural products and the benefits thereof. (1h - lecture, 2h - practicals)
3. Production, costs, revenue, efficiency
Production, costs, revenue. Economic and technological efficiency. The Cobb-Douglas production function. A production function with one variable. A production function with two variables. The law of diminishing returns. Producer equilibrium. (1h - lecture, 2h - practicals)
4. Opportunities to increase value added
The physical change of a product (grain milling and processing; division into components). The types of production that increase the value of products (organic farming). Product identity creation (sklandrausis; sprats). Cascading. Symbiosis. The role of bioeconomy industrial parks. (1h - lecture, 2h - practicals)
5. Economic processes
Intensification and productivity, the theoretical foundations thereof; scientific and technological progress, innovations; absolute and comparative advantages; the scientific foundations of specialization; specialization and diversification. (1h - lecture, 2h - practicals)
6. Cooperation
Cooperation models. Sectoral integration. Cooperation development in Latvia, the European Union and the world. (1h - lecture, 2h - practicals)
7. Rural development
The economic problems of the agricultural and food industries, forestry, fisheries and bioresources in relation to the opportunities and benefits of further use of the resources and the products produced. (1h - lecture, 2h - practicals)
8. Crop economics
The characteristics of crop production: output, changes in output and economic performance. The role of the bioeconomy in the production of crops, as well as the benefits and opportunities thereof. (1h - lecture, 2h - practicals)
9. Livestock economics
The characteristics of livestock production: output, changes in output and economic performance. The role of the bioeconomy in the production of livestock products, as well as the benefits and opportunities thereof. (1h - lecture, 2h - practicals)
10. Economics of food production
The characteristics of food production: output, changes in output and economic performance. The role of the bioeconomy in the development of the food industry. The characteristics of a food production chain. (1h - lecture, 2h - practicals)
11. Forestry economics
The characteristics of forest industries: output, changes in output and economic performance. The role of the bioeconomy in the production of forest products. The characteristics of a forest product production chain. (1h - lecture, 2h - practicals)
12. Economics of fisheries
The characteristics of fisheries industries: output, changes in output and economic performance. The role of the bioeconomy in the production of fishery products. The characteristics of a fishery product production chain. (1h - lecture, 2h - practicals)
13. Economics of biofuel, electricity and heat production
Costs and revenues. GHG emissions. The symbiosis of industries. Energy/heat; electricity; fuel/production. (1h - lecture, 2h - practicals)
14. Development of alternative industries in rural areas
Organic farming. Home production. (1h - lecture, 2h - practicals)
15. Linking bioeconomic science and practice for rural development
Production, processing, processing options and prospective models, discussion. A link between bioeconomic science and practice – prospective examples of bioeconomy development in Latvia and other EU Member States. (1h - lecture, 2h - practicals)
16. Trade in products of bioeconomy industries
Wholesale and retail of organic products. Imports and exports of organic products. Trade in the European Union’s single market and in the world. Special import and export measures. The World Trade Organization. (1h - lecture, 2h - practicals)

Requirements for awarding credit points

In the theoretical classes of the course, students learn the process of changes in agricultural and environmental policies and the impacts of the policies on the bioeconomy sector and rural economic development. In practicals classes, students analyse the possibilities of more complete and efficient use of bioresources in the bioeconomy, producing products according to innovative biotechnology principles. Students must take a test to assess the extent to which they have completed their independent work. During the group work in practicals, students analyse economic development indicators for the bioeconomy industries and rural areas and the factors affecting the economic development by doing a case study. The results acquired are summarized and presented.
The course ends with an examination.

Description of the organization and tasks of students’ independent work

1) Students get acquainted with and study the literature on changes in agricultural and environmental policies, as well as on the possibilities of more complete and efficient use of bioresources in the bioeconomy.
2) During the course, an analysis of economic development indicators of the bioeconomy industries and rural areas and the factors influencing the economic development is done independently. The results of the case study are presented in practicals.

3) Students acquire information and build up an understanding of the discussion topics of the bioeconomy for practicals.

Criteria for Evaluating Learning Outcomes

The final mark consists of the following pieces of assessment: an examination 50%; a case study of the bioeconomy sector and a presentation of the results 20%; the student’s activity in discussions and debates in practicals 15%; independent work on bioeconomic theory 15%.

Compulsory reading

1. Bioeconomy. Shaping the Transition to a Sustainable, Biobased Economy. Editor Levwandowski I. Stuttgart: University of Hohenheim, 2018, 354 pp. ISBN 978-3-319-68151-1
2. Vide un ilgtspējīga attīstība. Kļaviņš M., Zaļoksnis J. Rīga: LU Akadēmiskais apgāds, 2010, 334 lpp. ISBN 978-9984-45-220-3

3. Siltumnīcefekta gāzu emisiju samazināšanas iespējas ar klimatam draudzīgu lauksaimniecību un mežsaimniecību Latvijā. Rivžas P. red. Jelgava: LLU, 2018, 277 lpp. ISBN 978-9984-48-308-5

Further reading

1. Biotehonomika. Blumberga D., Barisa A., Kubule A. Rīga: RTU, 2016. 340 lpp.
2. Atjaunojamā enerģija un tās efektīva izmantošana Latvijā. Monogrāfija. Rivžas P. red. Jelgava, LLU, 2012, 391 lpp. ISBN 978-9984-48-085-5.

3. Treisijs M. Lauksaimniecība un pārtika tirgus ekonomikā. Rīga: LVAEI, 1996. 406 lpp.

Periodicals and other sources

1. Ziņojumi par Latvijas tautsaimniecības attīstību. Rīga: LR Ekonomikas ministrija.
2. Lauksaimniecības gada ziņojumi. Rīga: LR Zemkopības ministrija.

3. Latvijas Valsts meži. www. lvm.lv

Notes

Restricted elective course (Part B) for the ESAF academic bachelor programme Economics.