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Research Reports

KREI publishes reports through medium- and long-term research related to agricultural and rural policies, and through studies in various fields to promptly respond to current issues.

Structure and Prospect for supply and demand of Energy in Agricultural Sector

2010.10.01 49877
  • Author
    Kim, Yeanjung
  • Publication Date
    2010.10.01
  • Original

According to economic development and changes in internal and external economic conditions, the energy consumption structure and consumption by energy source of our country are largely changing. Nevertheless, South Korea depends on imports for most of its energy, because natural energy resources are insufficient, and is very sensitive to energy-related issues. Recently, because the International Convention on Climate Change raised concern about diminishing fossil fuels and global warming, the importance of energy efficiency is increasing.
To understand the energy input structure of the agricultural sector in order to prepare for efficient energy management plans, it is necessary to predict energy consumption by main items. For this, input-outpur analysis was conducted.
It was found that our agriculture and forestry and fisheries industry consumed 3.79 million tons oil equivalent(toe) in 2007, and the agriculture sector is expanding; on the other hand, the livestock and forestry and fisheries sectors are generally shrinking. The agriculture sector remarkably uses energy for vegetables and flowering plants, and in the case of vegetables, consumption has increased by more than 9%, and even consumption of flowering plants has increased by more than 11% above the annual average.
In addition, the energy input coefficient in the agriculture sector decreased by more than 30% compared with 1995, confirming that, in general, dependence on energy is being avoided. The agriculture sector is an industry dependent on energy as a result of the relatively large input coefficient in horticulture.
Meanwhile, domestic new renewable energy use in our country is just 2.43% of total consumption of the first energy but has shown a tendency to swiftly increase the supply rate of new renewable energy since 2000; however, consumption in the agriculture sector is mainly oil related compared with other industries, and the consumption of new renewable energy is almost nothing. Nevertheless, the government established a goal of expanding the supply rate level of new renewable energy to 4.3% in 2015, 6.1% in 2020, and 11% in 2030, so the use of new renewable energy is expected to increase even in the agriculture sector in the future.
Energy is the most important resource for the entire range of the national economy, and because of the effect of oil price increases, it has become a major interest of agriculture. Therefore, the government is preparing various policies for the efficient use of energy as well as energy saving. Accordingly, it is important to plan energy-related efficient policy by supplying basic data on energy policy establishment in the agriculture sector by analyzing the supply and demand status of clean energy in the agriculture sector along with the potential energy demand of the main agricultural and livestock products.


Researchers: Yun-Jung Kim, Ki-Hwan Park, Chang-Yong Kang, Yun-Hyung Kim and Han-Ho Kim
E-mail address: yjkim@krei.re.kr

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