IDEAS home Printed from https://ideas.repec.org/a/sae/agspub/v3y2014i3p369-402.html
   My bibliography  Save this article

Decomposing Change in Energy Consumption of the Agricultural Sector in Pakistan

Author

Listed:
  • Vaqar Ahmed

    (Vaqar Ahmed is Deputy Executive Director at the Sustainable Development Policy Institute, Pakistan. E-mail: vaqar@sdpi.org)

  • Muhammad Zeshan

    (Muhammad Zeshan is PhD Student, currently involved with Inha University Incheon and Pukyong National University Busan, South Korea. E-mail: muh.zeshan@gmail.com)

Abstract

The agricultural sector provides the majority of employment in Pakistan, especially among the poorest segments of the population. Energy provision affects production and livelihoods, especially with the advance of mechanization in agriculture. Changes in gas and electricity prices affect the income of farmers significantly, thereby reducing the agricultural growth rate over time. Agriculture also has a positive impact on industrial sector exports. The dependence of agriculture on electricity consumption in Pakistan has increased over time, while power generation has not kept up with demand. This article decomposes energy consumption in Pakistan and analyzes the behaviour of change in agricultural production, energy intensity and structural changes over the time.

Suggested Citation

  • Vaqar Ahmed & Muhammad Zeshan, 2014. "Decomposing Change in Energy Consumption of the Agricultural Sector in Pakistan," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 3(3), pages 369-402, December.
    • Handle: RePEc:sae:agspub:v:3:y:2014:i:3:p:369-402
    DOI: 10.1177/2277976014560944
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/2277976014560944
    Download Restriction: no
    File URL: https://libkey.io/10.1177/2277976014560944?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Muhammad Arshad Khan & Usman Ahmad, 2008. "Energy Demand in Pakistan: A Disaggregate Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 437-455.
    2. Burke, Paul J., 2010. "Income, resources, and electricity mix," Energy Economics, Elsevier, vol. 32(3), pages 616-626, May.
    3. Cleveland, Cutler J. & Kaufmann, Robert K. & Stern, David I., 2000. "Aggregation and the role of energy in the economy," Ecological Economics, Elsevier, vol. 32(2), pages 301-317, February.
    4. G. Boyd & J. F. McDonald & M. Ross & D. A. Hansont, 1987. "Separating the Changing Composition of U.S. Manufacturing Production from Energy Efficiency Improvements: A Divisia Index Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 77-96.
    5. Robert K. Kaufmann, 2004. "The Mechanisms for Autonomous Energy Efficiency Increases: A Cointegration Analysis of the US Energy/GDP Ratio," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 63-86.
    6. Binswanger, Hans, 1986. "Agricultural Mechanization: A Comparative Historical Perspective," The World Bank Research Observer, World Bank, vol. 1(1), pages 27-56, January.
    7. Unknown, 2008. "Institute of Agricultural Economics," Economics of Agriculture, Institute of Agricultural Economics, vol. 55(3).
    8. Shahid Javed Burki, 2008. "Industrial Policy: Domestic Challenges, Global Imperatives, and Pakistan’s Choices," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 13(Special E), pages 23-34, September.
    9. Rashid Amjad, 2012. "Stagflation, the Labor Market Impact, and the Poverty Puzzle in Pakistan: A Preliminary Analysis," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(Special E), pages 51-71, September.
    10. Liu, F. L. & Ang, B. W., 2003. "Eight methods for decomposing the aggregate energy-intensity of industry," Applied Energy, Elsevier, vol. 76(1-3), pages 15-23, September.
    11. Stern, David I., 2000. "A multivariate cointegration analysis of the role of energy in the US macroeconomy," Energy Economics, Elsevier, vol. 22(2), pages 267-283, April.
    12. Shaista Alam & Mohammad Sabihuddin Butt, 2001. "Assessing Energy Consumption and Energy Intensity Changes in Pakistan: An Application of Complete Decomposition Model," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 40(2), pages 135-147.
    13. Milunovich George & Yang Minxian, 2013. "On Identifying Structural VAR Models via ARCH Effects," Journal of Time Series Econometrics, De Gruyter, vol. 5(2), pages 117-131, May.
    14. Shahiduzzaman, Md. & Alam, Khorshed, 2013. "Changes in energy efficiency in Australia: A decomposition of aggregate energy intensity using logarithmic mean Divisia approach," Energy Policy, Elsevier, vol. 56(C), pages 341-351.
    15. Kaufmann, Robert K., 1994. "The relation between marginal product and price in US energy markets : Implications for climate change policy," Energy Economics, Elsevier, vol. 16(2), pages 145-158, April.
    16. Ang, B. W., 2004. "Decomposition analysis for policymaking in energy:: which is the preferred method?," Energy Policy, Elsevier, vol. 32(9), pages 1131-1139, June.
    17. Narayan, Seema, 2013. "A structural VAR model of the Fiji Islands," Economic Modelling, Elsevier, vol. 31(C), pages 238-244.
    18. Gustavo A. Marrero & Francisco J. Ramos-Real, 2013. "Activity Sectors and Energy Intensity: Decomposition Analysis and Policy Implications for European Countries (1991–2005)," Energies, MDPI, vol. 6(5), pages 1-20, May.
    19. Ang, B. W., 2005. "The LMDI approach to decomposition analysis: a practical guide," Energy Policy, Elsevier, vol. 33(7), pages 867-871, May.
    20. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
    21. Ang, B. W. & Liu, F. L. & Chew, E. P., 2003. "Perfect decomposition techniques in energy and environmental analysis," Energy Policy, Elsevier, vol. 31(14), pages 1561-1566, November.
    22. Kaufmann, Robert K., 1992. "A biophysical analysis of the energy/real GDP ratio: implications for substitution and technical change," Ecological Economics, Elsevier, vol. 6(1), pages 35-56, July.
    23. Liu, Wenling & Spaargaren, Gert & Heerink, Nico & Mol, Arthur P.J. & Wang, Can, 2013. "Energy consumption practices of rural households in north China: Basic characteristics and potential for low carbon development," Energy Policy, Elsevier, vol. 55(C), pages 128-138.
    24. Ang, B.W. & Liu, Na, 2007. "Handling zero values in the logarithmic mean Divisia index decomposition approach," Energy Policy, Elsevier, vol. 35(1), pages 238-246, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anthony N. Rezitis & Shaikh Mostak Ahammad, 2017. "Sectoral Growth and Energy Consumption in South and Southeast Asian Countries: Evidence from a Panel Data Approach," Review of Economics & Finance, Better Advances Press, Canada, vol. 10, pages 1-17, November.
    2. Sohail Amjed & Iqtidar Ali Shah & Adnan Riaz, 2022. "Investigating the Interactive Role of Demand Side Factors Potentially Responsible for Energy Crisis in Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 236-246, May.
    3. Javed, Asif, 2019. "Pakistan’s Agriculture Trade with South Asia," MPRA Paper 95729, University Library of Munich, Germany.
    4. Abbasi, Kashif Raza & Abbas, Jaffar & Tufail, Muhammad, 2021. "Revisiting electricity consumption, price, and real GDP: A modified sectoral level analysis from Pakistan," Energy Policy, Elsevier, vol. 149(C).
    5. Koondhar, Mansoor Ahmed & Shahbaz, Muhammad & Memon, Kamran Ali & Ozturk, Ilhan & Rong, Kong, 2020. "A visualization review analysis of the last two decades for Environmental Kuznets Curve “EKC” based on co-citation analysis theory and pathfinder network scaling algorithms," MPRA Paper 104949, University Library of Munich, Germany, revised 18 Dec 2020.
    6. Dogan, Eyup & Sebri, Maamar & Turkekul, Berna, 2016. "Exploring the relationship between agricultural electricity consumption and output: New evidence from Turkish regional data," Energy Policy, Elsevier, vol. 95(C), pages 370-377.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David I. Stern, 2010. "The Role of Energy in Economic Growth," CCEP Working Papers 0310, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    2. Yu-Kai Huang & Jyh-Yih Hsu & Lih-Chyun Sun, 2017. "A Study of Energy Efficiency and Mitigation of Carbon Emission: Implication of Decomposing Energy Intensity of Manufacturing Sector in Taiwan," International Journal of Energy Economics and Policy, Econjournals, vol. 7(2), pages 26-33.
    3. Seck, Gondia Sokhna & Guerassimoff, Gilles & Maïzi, Nadia, 2016. "Analysis of the importance of structural change in non-energy intensive industry for prospective modelling: The French case," Energy Policy, Elsevier, vol. 89(C), pages 114-124.
    4. Liu, Na & Ang, B.W., 2007. "Factors shaping aggregate energy intensity trend for industry: Energy intensity versus product mix," Energy Economics, Elsevier, vol. 29(4), pages 609-635, July.
    5. Sorrell, Steve, 2009. "Jevons' Paradox revisited: The evidence for backfire from improved energy efficiency," Energy Policy, Elsevier, vol. 37(4), pages 1456-1469, April.
    6. Jialing Zou & Weidong Liu & Zhipeng Tang, 2017. "Analysis of Factors Contributing to Changes in Energy Consumption in Tangshan City between 2007 and 2012," Sustainability, MDPI, vol. 9(3), pages 1-14, March.
    7. Lin, Boqiang & Ouyang, Xiaoling, 2014. "Analysis of energy-related CO2 (carbon dioxide) emissions and reduction potential in the Chinese non-metallic mineral products industry," Energy, Elsevier, vol. 68(C), pages 688-697.
    8. Jialing Zou & Zhipeng Tang & Shuang Wu, 2019. "Divergent Leading Factors in Energy-Related CO 2 Emissions Change among Subregions of the Beijing–Tianjin–Hebei Area from 2006 to 2016: An Extended LMDI Analysis," Sustainability, MDPI, vol. 11(18), pages 1-17, September.
    9. Jimenez, Raul & Mercado, Jorge, 2014. "Energy intensity: A decomposition and counterfactual exercise for Latin American countries," Energy Economics, Elsevier, vol. 42(C), pages 161-171.
    10. Jiabin Chen & Shaobo Wen, 2020. "Implications of Energy Intensity Ratio for Carbon Dioxide Emissions in China," Sustainability, MDPI, vol. 12(17), pages 1-13, August.
    11. Fernández González, P. & Presno, M.J. & Landajo, M., 2015. "Regional and sectoral attribution to percentage changes in the European Divisia carbonization index," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1437-1452.
    12. Wang, H. & Ang, B.W. & Su, Bin, 2017. "Assessing drivers of economy-wide energy use and emissions: IDA versus SDA," Energy Policy, Elsevier, vol. 107(C), pages 585-599.
    13. Li, DuoQi & Wang, DuanYi, 2016. "Decomposition analysis of energy consumption for an freeway during its operation period: A case study for Guangdong, China," Energy, Elsevier, vol. 97(C), pages 296-305.
    14. Yong Yang & Junsong Jia & Chundi Chen, 2020. "Residential Energy-Related CO 2 Emissions in China’s Less Developed Regions: A Case Study of Jiangxi," Sustainability, MDPI, vol. 12(5), pages 1-28, March.
    15. Vaninsky, Alexander, 2014. "Factorial decomposition of CO2 emissions: A generalized Divisia index approach," Energy Economics, Elsevier, vol. 45(C), pages 389-400.
    16. Chen, Bin & Yan, Jun & Zhu, Xun & Liu, Yue, 2023. "The potential role of renewable power penetration in energy intensity reduction: Evidence from the Chinese provincial electricity sector," Energy Economics, Elsevier, vol. 127(PB).
    17. Yi Liang & Dongxiao Niu & Haichao Wang & Yan Li, 2017. "Factors Affecting Transportation Sector CO 2 Emissions Growth in China: An LMDI Decomposition Analysis," Sustainability, MDPI, vol. 9(10), pages 1-20, September.
    18. Jain, Princy & Goswami, Binoy, 2021. "Energy efficiency in South Asia: Trends and determinants," Energy, Elsevier, vol. 221(C).
    19. Wang, Qiang & Li, Rongrong, 2016. "Drivers for energy consumption: A comparative analysis of China and India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 954-962.
    20. Wang, Qiang & Jiang, Xue-ting & Li, Rongrong, 2017. "Comparative decoupling analysis of energy-related carbon emission from electric output of electricity sector in Shandong Province, China," Energy, Elsevier, vol. 127(C), pages 78-88.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:agspub:v:3:y:2014:i:3:p:369-402. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.