At the start of 2010, the National Energy Regulator of South Africa (NERSA) announced that electricity tariffs would increase at an average rate of 25 percent per year over a three year period (Njobeni, 2010). This raised fears within the economy and specifically within the agricultural sector that these increases would negatively impact the agricultural sector. Various stakeholders within the agricultural sector also raised opinions on what the true impact will be on agricultural production and market prices. The main objective of this study was to quantify the true impact of higher electricity tariffs on production and market prices within the potato industry. The study focused on the potato producing regions of the Sandveld, Limpopo and South Western Free State. On-farm data were collected in an attempt to capture the electricity consumption and costs associated with potato farming in these specific regions. An effort was also made to calculate and capture production costs in these three regions which, together with the collected electricity costs, formed the basis of the analysis. The study applied a supply response model developed by the Bureau for Food and Agricultural Policy to evaluate the impact of increased electricity tariffs on potato production and prices in South Africa. The supply response model used is a standard econometric recursive dynamic model that has the purpose to model policy analysis, iv with short, medium and long term projections on an annual baseline basis (van Tongeren et al, 2000). However, in order to conduct analysis on electricity tariff increases, this supply response model required adaptation and improvement in order to incorporate electricity costs. Before this adjustment, the model applied the producer price / fertilizer price ratio as a proxy for production costs. Since detailed production costs (including electricity costs) were acquired through this study it was now possible to alter this ratio to a producer price / production costs ratio which included the electricity costs. To illustrate the impact of the electricity price increase the electricity cost component in production cost was shocked to reflect an increase at the set rate of an average of 25 percent per annum for the 2010, 2011 and 2012 production years. The results demonstrated that these three regions will see a decrease in hectares planted over the period between 2013 and 2020 as a result of the increased electricity tariffs, but that this decrease in hectares planted will be very small. The Sandveld region had the highest impact as it was calculated that on average, over the period between 2013 and 2020, a total of 35 hectares of potato production will be lost due to this higher electricity tariff. It can further be expected that the market price in the Sandveld region would increase slightly by 52c/10kg over the same period. The South Western Free State region was least effected by the higher electricity tariffs as a mere 1.6 hectares of potato production land could be lost due to the higher electricity tariffs which will lead to an increase of around 36c/10kg in market prices over the period between 2013 and 2020. The study further introduced a cost saving technique that farmers can use to counter the higher electricity tariffs. The majority of farmers consume electricity under the Landrate and Ruraflex tariff structure. It is this Ruraflex tariff structure that farmers can use to their advantage by consuming electricity during specific periods of the day that would result in a lower c/kWh cost. By reviewing the irrigation scheduling and activities of farmers the study established that most farmers pay far too much for electricity since their peak usage are during the periods of the day where higher rates apply. The study calculated that farmers, by applying this technique, could save between R190 and R455 on electricity costs per hectare in the Sandveld region. The study concluded that the impact of higher electricity tariffs on potato production and market prices in the Sandveld, Limpopo and South Western Free State regions are of a small nature which will most likely be absorbed by the farmers. The claims by various industry participants that the potato industry would be adversely negatively impacted were unfounded in this study. Nevertheless, in the event that electricity tariffs continue to increase in the future, farmers have to their disposal a cost saving technique that will aid them in countering some of the negative effects of electricity price hikes. / Dissertation (MCom)--University of Pretoria, 2012. / Agricultural Economics, Extension and Rural Development / unrestricted

In high-motorisation, car-dependent countries, transport affordability is intimately linked to the price of oil derived motor fuels, which may become increasingly volatile in the future due to global oil price movements and environmental taxation. The negative impacts of fuel price spikes in terms of increased household expenditure and economic stress are unevenly spatially and socially distributed. Previous research has found that vulnerability to fuel price increases is higher in peripheral, peri-urban and rural areas, and that low income tends to be co-located with high car dependence and low vehicle fuel efficiency, with a compounding effect on vulnerability. The goal of this article is to test these hypotheses for England, providing new evidence on spatial patterns of vulnerability to fuel price increases at the small-area level. We propose a composite vulnerability indicator combining data on income, accessibility, vehicle inspection and vehicle registration for 2011. Within English city-regions, we find little evidence of the socially regressive patterns previously identified in the literature. This is explained by the persistent concentration of poverty in urban cores, as well as by the poor fuel economy of the vehicle fleet in wealthier areas, due to the prevalence of powerful vehicles there. On the other hand, our analysis suggests that the impacts of fuel price increases would be very unequal between city-regions, as the least sensitive metropolitan area (Greater London) is also characterised by high levels of adaptive capacity. We conclude by setting out an agenda for future research on spatial vulnerability to fuel price increases.

Gotlands geografiska läge gör att många behöver ta sig till och från fastlandet med båt eller flyg. För åkerinäringen som kör gods till och från Gotland är färjan det enda alternativet. Destination Gotland är den enda aktör som främjar resor till och från fastlandet. Den senaste tiden har Destination Gotland haft plötsliga prishöjningar som i sin tur har väckt starka reaktioner bland företag, politiker och gemene man.  Syftet med studien är att undersöka hur åkerinäringen på Gotland hanterar plötsliga prisförändringar. Hur de arbetar för att vara resilienta och hur de arbetar med att bibehålla relationerna när det uppstår en kris/plötslig händelse. Vidare söker studien svar på hur åkerinäringen arbetar för att vara resilienta.  Denna studie genomfördes med en kvalitativ metod baserad på semistrukturerade intervjuer. Det empiriska materialet har tillhandahållits av sju intervjuer från sju olika företag på Gotland. De sju företagen varier, vad gäller storlek, antal anställda och Intervjuerna genomfördes med chefer och VD:ar från respektive företag.  Resiliens som begrepp, strategier om förhandlingsteknik, anpassningar, risk-hanteringen och teorin om social-utbytesteori utgör det teoretiska ramverket för denna studie.  Resultatet visar att åkeriföretagen i första hand försöker förhandla utifrån ett relationsperspektiv, där de önskar att samtliga parter blir nöjda, och att detta främjar långsiktigt företagsamheten. Företagen arbetar med anpassningar när någon plötslig händelse inträffar och kan anpassa verksamheten till viss mån. Det har framkommit att anpassningsförmågan varierar beroende på företagens storlek, resurser och tidigare erfarenheter. Genom att teckna rörliga priser i avtalet och införandet av ett ”båttillägg” blir de större företagen mer försäkrade att klara av den plötsliga prisförändringen från Destination Gotland än de små företagen.  Uppföljning, förtroende och kommunikation är tre nyckelord som framkom frekvent i det empiriska datamaterialet. Åkeriföretagen genomför uppföljningar för att säkerställa att kundernas förväntningar har uppfyllts. Företagen i studien engagerar sig i händelser som är av betydelse för företaget och kunderna och strävar efter att vara transparenta i sitt arbete. Förtroende är en central aspekt för företagen och de strävar efter att etablera ökat förtroende samt att bygga och bevara hållbara kundrelationer. / The geographical location of Gotland means that many people need to get to and from the mainland by boat or plane. For the haulage industry that haul goods to and from Gotland, the ferry is the only option to get to the mainland. Sudden price increases from Destination Gotland as an actor to provide travel to and from the mainland have caused many strong reactions among companies, politicians, and ordinary people.  The purpose of the study is to investigate how the trucking industry on Gotland handles sudden price changes. How they work to be resilient but also how they work to maintain relationships when a crisis/sudden event occurs. Furthermore, the study seeks answers to how the trucking industry works to be resilient.  A qualitative survey with semi-structured interviews is chosen for the implementation of this study. The empirical material consists of seven interviews from seven different companies on Gotland. The seven companies are of different sizes in terms of the number of employees and the interviewees are managers and CEOs of the company.  Resilience as a concept, strategies on negotiation techniques, adaptations, risk management and the theory of social exchange theory constitute the theoretical framework for this study.  The result shows that the haulage companies always try to negotiate from a relational perspective where they want all parties to be satisfied, because they believe that this promotes business in the long run. Companies work with adaptations when something sudden happens and companies can adapt operations to a certain extent when something unexpected happens. It has emerged that the ability to adapt varies depending on size, resources, and previous experiences. With agreements on variable prices, which in this case are called boat supplements, the larger companies are more insured to cope with the sudden price change from Destination Gotland.  Follow-ups, trust, and communication are three keywords that appeared many times in the empirical data material. The haulage companies do follow-ups to ensure that expectations have been met. The companies in the study constantly communicate what happened and try to be transparent in their work. Trust that they built over time and creating increased trust is something that the company strives to maintain continued sustainable relationships.

In 2022, food prices increased rapidly, prompting this investigation into how the price shock has impacted consumer behavior. Previous studies have found that price shocks affect low- income households with children the most. A switch to more calorie-dense food and a decreased consumption of snacks. This study aims to estimate the price elasticity of various food products and to identify how the elasticities differ among various types of households. The elasticities are calculated using OLS regression on receipt data from Coop. Results show that household variables, including income level, presence of children, shopping location, and organic product preferences, significantly impact the price elasticity of food products. Low-income households without children, living outside major cities and their suburbs, have a higher price elasticity, meaning these shoppers are more sensitive to price changes. The same tendencies were observed for all products even though the exact parameters could only be proven for a third of the products. The findings have important implications for understanding how price changes affect consumer behavior and can inform food policy decisions. / Under 2022 ökade livsmedelspriserna kraftigt, vilket inspirerade denna undersökning av hur prischocken har påverkat konsumenternas beteende. Tidigare studier visar att prischocker har störst påverkan på låginkomsthushåll med barn. Även en övergång till mer kaloririk mat och en minskad konsumption av snacks har observerats. Syftet med denna studie är att uppskatta priselasticiteten för olika livsmedel och identifiera hur elasticiteten skiljer sig åt mellan olika typer av hushåll. Elasticiteterna beräknas med hjälp av en OLS-regression på kvittodata från Coop. Resultaten visar att hushållsvariabler, inklusive inkomstnivå, barn i hushållet, varans inköpsplats och val av ekologiska produkter, påverkar priselasticiteten för livsmedel markant. Hushåll med låg inkomst utan barn, som bor utanför större städer och deras förorter, har en högre priselasticitet, vilket innebär att dessa kunder är mer priskänsliga. Samma tendenser observerades för alla produkter även om de exakta parametrarna endast kunde bevisas för en tredjedel av produkterna. Resultaten har viktiga implikationer för förståelsen av hur prisförändringar påverkar konsumentbeteenden och kan även informera livsmedelspolitiska beslut.