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A Multi-Product Analysis of Energy Demand in Agricultural Subsectors

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  • Adelaja, Adesoji
  • Hoque, Anwarul

Abstract

A multi-product cost function model was used to analyze energy demand in various agricultural subsectors. This approach has advantages over previously used approaches since it reduces aggregation bias, considers technological jointness, and provides various disaggregative measures related to energy input demand. When fitted to West Virginia county level data, labor and miscellaneous inputs in crop and livestock production were found to be substitutes for energy, while capital, machinery, and fertilizer were complementary to energy. Energy demand was inelastic and increases in machinery prices had the largest reduction effect on energy demand. Technological change was found to be capital, machinery, and fertilizer using, but it was labor and energy saving. Analyses indicated that the elasticity of demand for energy inputs with respect to livestock output was significantly larger than the elasticity with respect to crop output.

Suggested Citation

  • Adelaja, Adesoji & Hoque, Anwarul, 1986. "A Multi-Product Analysis of Energy Demand in Agricultural Subsectors," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 18(2), pages 51-64, December.
    • Handle: RePEc:cup:jagaec:v:18:y:1986:i:02:p:51-64_00
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    1. Musser, Wesley N. & Lambert, Dayton M. & Daberkow, Stan G., 2006. "Factors Affecting Direct and Indirect Energy Use in U.S. Corn Production," 2006 Annual meeting, July 23-26, Long Beach, CA 21063, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Lopez, Rigoberto A. & Adelaja, Adesoji O. & Andrews, Margaret S., "undated". "The Impact of Suburbanization on Agricultural Production Choices," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 269990, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Vicente E. Montano & Rosalia T. Gabronino & Restie E. Torres, 2019. "The curious relationship between agricultural and energy price index: A Vector Error Correction Model (VECM) analysis approach," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 5(3), pages 161-177.
    4. Kim, C.S. & Hallahan, Charles B. & Taylor, Harold & Schluter, Gerald E., 2002. "Market Power And Cost-Efficiency Effects Of The Market Concentration In The U.S. Nitrogen Fertilizer Industry," 2002 Annual meeting, July 28-31, Long Beach, CA 19674, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Gezahegn, T.W. & Maertens, M., 2018. "Economic Incentives for Collective Action in Agriculture: Evidence from Agricultural Co-operatives in Tigray, North Ethiopia," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277137, International Association of Agricultural Economists.

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