Abstract
Petroleum products such as heavy oil A, produced from crude oil, are important for agricultural production. The impact of increasing oil prices on agricultural production costs is unclear. This study analyzed the impact of increasing crude oil import prices on agricultural production costs since 2005 using input-output analysis. Comparing the rate of increase in agricultural production costs between 2005 and 2015, this study found that only the sectors of wheat, institutional vegetables, and flowers and flowering plants saw a reduced rate of increase in agricultural production costs. Institutional vegetables and flowers and flowering plant sectors use heavy oil A. Hence, these sectors are changing their production structure to reduce dependence on crude oil.
