Abstract
This study interrogates the effects of electricity consumption and government agricultural spending on agricultural output in Nigeria using data that spanning through from 1981 to 2017. The unit root test was conducted with Phillip Perron (PP) at constant and trend while the dynamic model of autoregressive distributed lags (ARDL) was used in ascertaining the existence of cointegration among the variables in the model. The outcome of the study shows that poor electricity supply has significantly retarded the level of agricultural output in Nigeria while public agricultural spending indicates a weak positive lag effect on agricultural sector performance. These outcomes capture the adverse effect of shortage in electric energy supply and poor government allocation on agricultural production of goods and services. We, therefore, advocate for sector-driven energy policies that will foster the growth and development of the agricultural sector through mechanisation of agricultural system.
Highlights
The quest for energy and the utilisation of electricity have witnessed significant increase over the last two decades due to its pivotal role in real sector productivity which most importantly includes the agricultural sub sector
Electricity in its usefulness and application to agriculture facilitates commercialisation of agricultural practice through large scale production, processing and packaging of agricultural output (AGOP). It further encourages the establishment of agro-allied industries that are involved in the agricultural value chain which mostly rely on electric energy to power their machines and equipment
The model is applied to estimate the influence of energy consumption and public spending on AGOP where agricultural commodity output has been captured as the dependent variable
Summary
The quest for energy and the utilisation of electricity have witnessed significant increase over the last two decades due to its pivotal role in real sector productivity which most importantly includes the agricultural sub sector. Et al.: Electricity Consumption, Public Agricultural Expenditure and Output in Nigeria: A Time Series Dynamic Approach as heat generation and processing of agricultural products It is one of the three highly ranked basic infrastructure that is lacking in developing countries. Electricity in its usefulness and application to agriculture facilitates commercialisation of agricultural practice through large scale production, processing and packaging of agricultural output (AGOP) It further encourages the establishment of agro-allied industries that are involved in the agricultural value chain which mostly rely on electric energy to power their machines and equipment. A conducive business environment is one that is characterised by low cost of production especially in the process of generating power In such case, the role of public infrastructural expenditure which includes the provision of constant electricity supply become very pertinent for production to strive. Policy implications in relation to government spending and consumed energy are suggested based on the empirical validations
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