Abstract
This study aims to empirically test the relationship between agriculture economic growth and energy consumption in India covering the annual time series data for the period 1985 to 2017 on four economic indicators namely agricultural value added (constant 2010 US$) as an alternate favoring fiscal development of agriculture, energy spending represented by agricultural electricity consumption (GWh), agricultural gas consumption (mmcft) and agricultural oil consumption (tons) in India. The study variables are assessed for stationary using the ADF tests and after confirming the same order of integration, the Johansen's Co-integration Test is exercised to find the extended association amid agriculture growth and energy consumption. Both the Trace and Lmax tests found that there exists one co-integrating equation in the system. The co-integration test confirms the long run equilibrium relation between energy consumption and agricultural economic growth in India. The short run relationships are tested by using the VECM methodology and finally the impulse responses are studied for the forecast horizon of ten years period to assess the performance of agricultural growth Vis a Vis energy consumption by imposing one standard deviation shock to the independent variables.Keywords: Co-integration, Agricultural Growth, Energy Use & Time Series AnalysisJEL Classifications: C32, O13, Q40DOI: https://doi.org/10.32479/ijeep.9711
Highlights
Agricultural economic growth and energy consumption is vital for the decision making of both the agricultural policy and energy policy
Electricity use for agriculture has increased from 84729 GWh in the year 2000210611 GWh in the year 2017; agricultural gas use has increased from 7254 mmcft in the year 2000-15611 mmcft in the year 2017, oil use for agriculture has decreased from 2732 tons in the year 2000-489 tons in the year 2017
For one period lag there subsists a uni-directional causality amid agricultural fiscal expansion and agri-electric use, where agricultural fiscal expansion (Granger) causes agri-electric use meaning that changes in agricultural fiscal expansion are valuable to assume alteration in agri- electric usage within one-year time period
Summary
Agricultural economic growth and energy consumption is vital for the decision making of both the agricultural policy and energy policy. Energy is one of the critical impelling strengths for monetary goings-on, agriculture growth. Energy has relentlessly performed an imperative function in the lives of human-beings and economic development has been getting the fillip through it. Agriculture has always been making a vital impact on the Indian economy. There can be no economic activity devoid of agriculture. The agricultural sector has to pass-through intricate ordeals with unprecedented force of energy consumption. It was accounted that energy consumption in 26 developed nations had grown at an average yearly rate of 0.62 percent and in the developing nations at an average rate of
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
