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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.

A Review on Energy Supply and Demand and Policy in Agriculture and Rural Communities

2013.12.30 36408
  • Author
    Kang, Changyong
  • Publication Date
    2013.12.30
  • Original

Background of Research
The Korean government has managed the country's whole energy at national level, and is directly responsible for development and management of some energy resources. However, its energy policy for agriculture and rural communities is not sufficient. Energy policy on the level of the Ministry of Agriculture, Food and Rural Affairs is extremely rare because a different ministry is responsible for the country's energy policy. Therefore, energy policy for agriculture, forestry and fisheries is required to be carried out, keeping pace with the country's whole energy policy.

Method of Research
This study examines existing materials, conducts surveys, and analyzes the results of the surveys. The existing materials are secondary sources published by the government, relevant agencies and organizations. Survey materials are surveys of farmers and public officials related to energy.

Research Results and Implications
The agriculture sector is required to take part in the country's energy management policy, since energy issues do not apply only to a single ministry. Nonetheless, the government has never published any objective data on which energy sources are being used in the agriculture sector and rural communities, and on where and how much they are being consumed. Such data may be considered unimportant because energy consumption in agriculture accounts for less than 3% of the country's total energy consumption. But energy-related issues will inevitably affect the agriculture sector and rural communities. Therefore, basic data needs to be collected and organized as a minimum of preparation.
Farmers do not have high awareness of energy policy for agriculture and rural communities. The reason is that they consider other issues relatively more urgent. Especially, the importance of energy is low among agricultural issues. In fact, "energy" has never been emphasized in the sector so far. Their low awareness of energy may be an inevitable result. But they need to raise the awareness of energy, since the importance of energy will sharply increase day by day. There is a gap between channels for them to acquire information and methods for the government to spread information. Thus, the channels and the methods are required to be adjusted or rectified.
In general, farmers have a low level of satisfaction with energy policy for agriculture and rural communities except for tax-free oil and agricultural electricity. Farmers who are aware of energy importance or participate in government-aided projects also do not make favorable assessments regarding the policy. Even some people hold critical opinions of a government-aided project to provide pellets and air source heat pumps.
Public officials do not make positive assessments regarding energy policy for agriculture and rural communities, either. They say that government-aided projects do not live up to expectations in terms of efficiency even though they maintain validity and objectivity to some extent. Therefore, it is necessary to undertake an overall review on the contents or methods of the projects.
In the future, tensions and conflicts over energy will become more acute. Many countries are keen on developing new and renewable energy to replace fossil fuels. The reason is that peak oil is coming soon. For the time being, it is difficult to commercialize unending, new and renewable energy that all human beings long for. This explains why Korea, highly dependent on foreign sources for almost all energy supplies, is required to further enhance its energy policy. The agriculture sector and rural communities are no exceptions. They should keep pace with the country's energy policy, develop and make use of their own unique energy sources. There is a rich repository of new and renewable green energy sources in the agriculture sector and rural communities. It is urgent to establish and organize a comprehensive energy management plan for agriculture and rural communities.


Researchers: Chang-Yong Kang, Dong-Hyun Moon
Research Period: 2013. 1 ~ 2013. 12
E-mail address: cykang@krei.re.kr

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The Current Status of Agricultural Energy Production and Consumption
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The Current Status of Energy use and Policy in Agriculture and Rural communities