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Energy Consumption and Agricultural Economic Growth Nexus: Evidence from India

Author

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  • Krishna Murthy Inumula

    (Symbiosis Institute of International Business, Symbiosis International (Deemed University), Pune, Maharashtra, India,)

  • Seema Singh

    (Director, Symbiosis Centre for Corporate Education, Pune, Symbiosis International (Deemed University), Pune, Maharashtra, India.)

  • Sandip Solanki

    (Symbiosis Institute of International Business, Symbiosis International (Deemed University), Pune, Maharashtra, India,)

Abstract

This study aims to empirically test the relationship between agriculture economic growth and energy consumption in India covering the annual time series data for the period 1985 to 2017 on four economic indicators namely agricultural value added (constant 2010 US$) as an alternate favoring fiscal development of agriculture, energy spending represented by agricultural electricity consumption (GWh), agricultural gas consumption (mmcft) and agricultural oil consumption (tons) in India. The study variables are assessed for stationary using the ADF tests and after confirming the same order of integration, the Johansen s Co-integration Test is exercised to find the extended association amid agriculture growth and energy consumption. Both the Trace and Lmax tests found that there exists one co-integrating equation in the system. The co-integration test confirms the long run equilibrium relation between energy consumption and agricultural economic growth in India. The short run relationships are tested by using the VECM methodology and finally the impulse responses are studied for the forecast horizon of ten years period to assess the performance of agricultural growth Vis a Vis energy consumption by imposing one standard deviation shock to the independent variables.

Suggested Citation

  • Krishna Murthy Inumula & Seema Singh & Sandip Solanki, 2020. "Energy Consumption and Agricultural Economic Growth Nexus: Evidence from India," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 545-552.
    • Handle: RePEc:eco:journ2:2020-06-70
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    References listed on IDEAS

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    6. Xue Wu & Yaliu Yang & Conghu Liu & Guowei Xu & Yuxia Guo & Fan Liu & Yuan Wang, 2021. "Sustainability of Regional Agroecological Economic System Based on Emergy Theory: A Case Study of Anhui Province, China," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
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    More about this item

    Keywords

    Co-integration; Agricultural Growth; Energy Use & Time Series Analysis;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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