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26 CHAPTER 2


Figure 2.10 Intensity of energy and oil use in production: Some macroeconomic measures


Energy use per million U.S. dollars of output (thousand metric tons of oil equivalent)


1.20 1.00 0.80 0.60 0.40 0.20


0.00 ab


Sources: Calculations by the authors using data from IEA energy balance sheets on energy use by source of energy and sector (IEA 2008), and United Nations (2008) national accounts data on value-added in U.S. dollars by sector.


Note:


Sample includes a set of more-developed countries (excluding one significant outlier, Australia) and less-developed countries.


rising export prices, although some of his calculations are rather sensitive to the methodology he adopts. First, Mitchell (2008) finds that the contribu- tion of the energy-intensive components of total production costs (fertilizer, chemicals, fuel, lubricants, and electricity) in U.S. production were 13.4 per- cent for maize, 6.7 percent for soybeans, and 9.4 percent for wheat. Mitchell uses these data to calculate that the production-weighted average increase in the cost of production due to these energy-intensive inputs for these crops was 11.5 percent between 2002 and 2007. Transport costs also increased because of higher fuel costs, and the margin between domestic and export prices reflects this increase. Mitchell (2008) calculates that the margin for maize between central Illinois and the Gulf ports increased from US$0.36 to US$0.72 per bushel, whereas the margin for wheat between Kansas City and the Gulf ports registered hardly any increase at all. An export-weighted aver- age of these prices suggests that transport costs could have added as much as 10.2 percent to the export prices of maize and wheat (comparable data were not available for soybeans). Hence Mitchell (2008) estimates that the combined increase in production and transport costs for the major U.S. food commodities—maize, soybeans, and wheat—was at most 21.7 percent during 2002–07.


Non-oil Oil


Share of oil in total energy use (percent)


100 90 80 70 60 50


10 20 30 40


0


More developed Less developed


Transport All other Industry Agriculture


Transport Agriculture Industry All other


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