Advanced Search
MyIDEAS: Login

Rigid growth characteristic of demand for oil in China's agro-production

Contents:

Author Info

  • Lihong Wang
  • Zhihong Tian
Registered author(s):

    Abstract

    Purpose – The demand for oil in agricultural production increases continuously with the world oil price soaring, reflecting a rigid growth characteristic, but there are no clear reasons for this. The purpose of this paper is to assess the essential reasons of this issue in theoretical and empirical perspectives. Design/methodology/approach – The paper develops the model of derived demand for petroleum in agro-production; analyzes the effect on agricultural labor-machinery due to the changes in relative price of input factors; and reveals the reasons for the rigid growth of the demand for farm diesel; as well as estimates the substitution of agricultural machine for labor. Findings – The results indicate that the rigid growth characteristic of the demand for farm diesel is due to the adjustment of the product and factor markets; and the most important reason is the changes in structure of the agro-production inputs caused by the relative soaring price of agricultural labor-machinery. Practical implications – The government should attach importance to its impact on farmers and take effective measures to insure the stable development of agricultural production. Originality/value – This research investigates the main reasons for the rigid growth characteristic of demand for oil in China's agro-production from a novelty perspective. The proposed conceptual model is unique, it analyzes the substitution of agricultural mechanical for labor from the perspective of changes in relative price, and selects the two level constant elasticity substitution production functions to estimate the substitution of agricultural machinery for labor.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.emeraldinsight.com/journals.htm?issn=1756-137x&volume=1&issue=3&articleid=1790031&show=abstract
    Download Restriction: Cannot be freely downloaded

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal China Agricultural Economic Review.

    Volume (Year): 1 (2009)
    Issue (Month): 3 (September)
    Pages: 327-341

    as in new window
    Handle: RePEc:eme:caerpp:v:1:y:2009:i:3:p:327-341

    Contact details of provider:
    Web page: http://www.emeraldinsight.com

    Order Information:
    Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
    Email:
    Web: http://www.emeraldinsight.com/caer.htm

    Related research

    Keywords: China; Economic growth; Oil industry; Petroleum;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eme:caerpp:v:1:y:2009:i:3:p:327-341. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.