The Impacts of Energy Price Fluctuations on China's Agriculture and Rural Economic Development

Abstract

This paper develops a China urban-rural input-output model and applies the input-output price model to evaluate the impact of rise in energy price on fluctuations of agricultural products prices and urban-rural income and expenses. The results show that energy price rises may lead to the rise of agiricultural products price by 26-47%. With rise in energy price, the net profit of agriculture hurts in those coastal provinces and some central provinces who have higher intensification, while the net income of agriculture benefits in the central and western regions with lower intensification. The consumer surplus both in urban and rural residents is reduced by energy price rise. While the influence of energy price on urban residents is greater than that on rural residents.