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The relationship between agricultural technology and energy demand in Pakistan

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  • Zaman, Khalid
  • Khan, Muhammad Mushtaq
  • Ahmad, Mehboob
  • Rustam, Rabiah

Abstract

The purpose of this study was two fold: (i) to investigate the casual relationship between energy consumption and agricultural technology factors, and (ii) electricity consumption and technological factors in the agricultural sector of Pakistan. The study further evaluates four alternative but equally plausible hypotheses, each with different policy implications. These are: (i) Agricultural technology factors cause energy demand (the conventional view), (ii) energy demand causes technological factors, (iii) There is a bi-directional causality between the two variables and (iv) Both variables are causality independent. By applying techniques of Cointegration and Granger causality tests on energy demand (i.e., total primary energy consumption and electricity consumption) and agricultural technology factors (such as, tractors, fertilizers, cereals production, agriculture irrigated land, high technology exports, livestock; agriculture value added; industry value added and subsides) over a period of 1975–2010. The results infer that tractor and energy demand has bi-directional relationship; while irrigated agricultural land; share of agriculture and industry value added and subsides have supported the conventional view i.e., agricultural technology cause energy consumption in Pakistan. On the other hand, neither fertilizer consumption and high technology exports nor energy demand affect each others. Government should form a policy of incentive-based supports which might be a good policy for increasing the use of energy level in agriculture.

Suggested Citation

  • Zaman, Khalid & Khan, Muhammad Mushtaq & Ahmad, Mehboob & Rustam, Rabiah, 2012. "The relationship between agricultural technology and energy demand in Pakistan," Energy Policy, Elsevier, vol. 44(C), pages 268-279.
    • Handle: RePEc:eee:enepol:v:44:y:2012:i:c:p:268-279
    DOI: 10.1016/j.enpol.2012.01.050
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    2. Zhihai Yang & Dong Wang & Tianyi Du & Anlu Zhang & Yixiao Zhou, 2018. "Total-Factor Energy Efficiency in China’s Agricultural Sector: Trends, Disparities and Potentials," Energies, MDPI, vol. 11(4), pages 1-16, April.
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    9. Jiake Li & Wei Wang & Meng Li & Qiao Li & Zeming Liu & Wei Chen & Yanan Wang, 2022. "Impact of Land Management Scale on the Carbon Emissions of the Planting Industry in China," Land, MDPI, vol. 11(6), pages 1-15, May.
    10. Marwen Elkamel & Luis Rabelo & Alfonso T. Sarmiento, 2023. "Agent-Based Simulation and Micro Supply Chain of the Food–Energy–Water Nexus for Collaborating Urban Farms and the Incorporation of a Community Microgrid Based on Renewable Energy," Energies, MDPI, vol. 16(6), pages 1-26, March.
    11. Stanisław Bielski & Renata Marks-Bielska & Paweł Wiśniewski, 2022. "Investigation of Energy and Economic Balance and GHG Emissions in the Production of Different Cultivars of Buckwheat ( Fagopyrum esculentum Moench): A Case Study in Northeastern Poland," Energies, MDPI, vol. 16(1), pages 1-24, December.
    12. 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.
    13. Anam Azam & Muhammad Rafiq & Muhammad Shafique & Muhammad Ateeq & Jiahai Yuan, 2020. "Causality Relationship Between Electricity Supply and Economic Growth: Evidence from Pakistan," Energies, MDPI, vol. 13(4), pages 1-20, February.
    14. Espinosa-Tasón, Jaime & Berbel, Julio & Gutiérrez-Martín, Carlos, 2020. "Energized water: Evolution of water-energy nexus in the Spanish irrigated agriculture, 1950–2017," Agricultural Water Management, Elsevier, vol. 233(C).
    15. Nayab Khalid & Ayesha Siddiqa & Sheraz Ahmad Ch & Khalid Zaman, 2018. "Impact of Agriculture Sector Development on Economic Growth: Application of Robust Linear Least Squares Regression on Pakistan’s Data Set," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(4), pages 631-641, AUGUST.
    16. Hasanov, Fakhri J. & Shannak, Sa'd, 2020. "Electricity incentives for agriculture in Saudi Arabia. Is that relevant to remove them?," Energy Policy, Elsevier, vol. 144(C).
    17. Shah, Syed Hasnain & Raja, Iftikhar Ahmed & Rizwan, Muhammad & Rashid, Naim & Mahmood, Qaisar & Shah, Fayyaz Ali & Pervez, Arshid, 2018. "Potential of microalgal biodiesel production and its sustainability perspectives in Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 76-92.
    18. Mumtaz, Rehma & Zaman, Khalid & Sajjad, Faiza & Lodhi, Muhammad Saeed & Irfan, Muhammad & Khan, Imran & Naseem, Imran, 2014. "Modeling the causal relationship between energy and growth factors: Journey towards sustainable development," Renewable Energy, Elsevier, vol. 63(C), pages 353-365.
    19. Tomasz Rokicki & Aleksandra Perkowska & Bogdan Klepacki & Piotr Bórawski & Aneta Bełdycka-Bórawska & Konrad Michalski, 2021. "Changes in Energy Consumption in Agriculture in the EU Countries," Energies, MDPI, vol. 14(6), pages 1-21, March.
    20. Zaman, Khalid & Khan, Muhammad Mushtaq & Ahmad, Mehboob & Khilji, Bashir Ahmad, 2012. "The relationship between agricultural technologies and carbon emissions in Pakistan: Peril and promise," Economic Modelling, Elsevier, vol. 29(5), pages 1632-1639.
    21. Suleman Sarwar & Rida Waheed & Mehnoor Amir & Muqaddas Khalid, 2018. "Role of Energy on Economy The Case of Micro to Macro Level Analysis," Economics Bulletin, AccessEcon, vol. 38(4), pages 1905-1926.
    22. Zaman, Khalid & Khan, Muhammad M. & Ahmad, Mehboob & Rustam, Rabiah, 2012. "Determinants of electricity consumption function in Pakistan: Old wine in a new bottle," Energy Policy, Elsevier, vol. 50(C), pages 623-634.

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