Analysis of the possibility of prisovervæltning of energy expenditure in agriculture and industry
Energistyrelsen | Published October 8, 2013 - Deadline October 30, 2013
The analysis of prisovervæltning of energy costs shall include the following activities: 1 Description of the method / model 2 Analysis and description of the markets for each product 3 Calculation of the expected prisovervæltning for each of the products. In the following, the contents of the various activities described in detail. 1 Description of the method / model, carry out a quantitative analysis of prisovervæltning and used meto-de/model is essential. It is important that the method / model and its strengths and weaknesses described. The consultant must therefore explain the model or methodology applied in the quantitative analysis of prisovervæltning in a way that is understandable to a broader audience. The description should include the economic-theoretical basis, main features of the model and the main uncertainties, strengths and weaknesses of the model and its results. In addition, the consultant will assess the possibilities and limitations of generalizing from the 5 selected products for broader assessments of the potential for prisovervæltning at branch level. 2 Analysis and description of the markets for each product. The description must be made for each of the following products: - Brick - Malt - Houseplants - Pesticides - Sugar products are not representative of Danish production companies, but are chosen based on criteria of energy intensity, turnover, transport and suspected international competition. There has also been a desire to have a product from horticultural (potted plants), a product that will be impacted by PSO tariff on gas (brick) and products produced primarily in the "peripheral Denmark" (pesticides and sugar) . The description must for each product provide a thorough understanding and production of the market conditions, the Danish producers are facing. This will include include the description of its cost structure in the production of products, national and international competitors, transport costs and possible. market barriers and preferences, etc.. affecting interna-tional trade in the product. 3 Calculation of the expected prisovervæltning for each of the products. Please provide a quantitative estimate of the expected absorption by a unilateral Danish increment-tion of corporate energy costs, for example. as a result of an increased energy. The possibility of absorption expressed as the proportion of the increased cost of energy, measured in percent who passed on the price, and as far as possible by indicating the calculated change in profit (bottom line) of production of the goods as a result of the increased costs. The analysis relies on information on the company and product level collected in Activity 2, for example. from books or other sources, as well as data on competition in the markets for the on-current product. The latter include number of companies that sell the goods (or a close substitute) in the markets of firms in markets from countries that are not exposed to a corresponding increase in costs and distances to market and transport costs. Deliveries from the analysis should be available the following supplies at the end of the analysis: 1 Method / Model Description: A pedagogical explanation of the method used and the model used tool, including the assumptions and the main uncertainties, strengths and weaknesses associated with the methodology and the data used. 2 Analysis of prisovervæltning by increased energy costs for five products, including market descriptions for each product, and calculating prisovervæltning and bottom-line consequences. 3 Reporting of the above.