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Impacts of Energy Price on Agricultural Production, Energy Consumption, and Carbon Emission in China: A Price Endogenous Partial Equilibrium Model Analysis

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  • Yongxi Ma

    (School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou 310018, China
    Zhejiang Academy of Eco-Civilization, Zhejiang Sci-Tech University, Hangzhou 310018, China)

  • Lu Zhang

    (School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou 310018, China)

  • Shixiong Song

    (School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou 310018, China
    Zhejiang Academy of Eco-Civilization, Zhejiang Sci-Tech University, Hangzhou 310018, China)

  • Shuao Yu

    (School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou 310018, China
    Zhejiang Academy of Eco-Civilization, Zhejiang Sci-Tech University, Hangzhou 310018, China)

Abstract

Energy market volatility will have systemic effects on agricultural production, energy consumption and carbon emissions. This paper aims to evaluate the impacts of energy price on agricultural production, energy consumption, and carbon emission in China. To achieve the objective, this paper, firstly, constructed a price endogenous partial equilibrium model, and then designed four scenarios of energy price fluctuations, finally evaluating the impacts of energy price fluctuations on agricultural production and its energy consumption and carbon emission. The results revealed that: (1) The impacts on agricultural production are very limited, but higher energy price will result in producers’ welfare loss by 0.6% to 1.4%, under different scenarios. (2) Energy price drives negative impacts on agricultural energy consumption and carbon emission, 1.6%/3.2% and 1.3%/2.6%, respectively, in low/high amplitude scenarios. (3) Heterogeneous impacts are confirmed in the regional analysis; South China is simulated to be the most sensitive area. To mitigate the impacts from energy price and reduce carbon emission in agriculture, several policy implications have recently been proposed, including strengthening supervision of the energy market, constructing an energy saving price-setting mechanism, launching policy instruments to improve energy efficiencies and facilitate cleaner farming techniques, and formulating specific measurements of energy saving and emission reduction for different regions.

Suggested Citation

  • Yongxi Ma & Lu Zhang & Shixiong Song & Shuao Yu, 2022. "Impacts of Energy Price on Agricultural Production, Energy Consumption, and Carbon Emission in China: A Price Endogenous Partial Equilibrium Model Analysis," Sustainability, MDPI, vol. 14(5), pages 1-14, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:5:p:3002-:d:764058
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    Cited by:

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    3. Oratilwe Penwell Mokoena & Thembelihle Sam Ntuli & Tshepo Ramarumo & Solly Matshonisa Seeletse, 2023. "Sustainability of Rural Small-Scale Farmers Using a Thematic Content-Fed Analytic Hierarchy Process," Sustainability, MDPI, vol. 15(15), pages 1-22, August.
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    5. Fiza Shaheen & Muhammad Saeed Lodhi & Joanna Rosak-Szyrocka & Khalid Zaman & Usama Awan & Muhammad Asif & Waqas Ahmed & Maria Siddique, 2022. "Cleaner Technology and Natural Resource Management: An Environmental Sustainability Perspective from China," Clean Technol., MDPI, vol. 4(3), pages 1-23, June.
    6. Qi Zhang & Yi Hu & Jianbin Jiao & Shouyang Wang, 2022. "Exploring the Trend of Commodity Prices: A Review and Bibliometric Analysis," Sustainability, MDPI, vol. 14(15), pages 1-22, August.
    7. Piotr Gołasa & Wioletta Bieńkowska-Gołasa & Magdalena Golonko & Paulina Trębska & Piotr Gradziuk & Arkadiusz Gromada & Marcin Wysokiński, 2022. "Sensitivity of the Agribusiness Sector to Sudden Changes in the Prices of Energy Carriers on the Example of Poland: Current State and Challenges," Energies, MDPI, vol. 15(22), pages 1-10, November.

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