Analysis of the impact of agricultural product demand on energy consumption

Document Type : Research Paper

Authors

1 Graduated with a PhD in Agricultural Economics from Tarbiat Modares university.

2 Associate Professoor of Agricultural Economics ,Tarbiat Modares university.

3 Phd student of Agricultural Economics ,Tarbiat Modares university.

Abstract

Energy is one of the most important inputs of agricultural production, the consumption of which is directly related to increasing demand for various products in this sector. In this regard, due to the implementation of various phases of targeted subsidies law, energy consumption pattern has been changed in this sector, so the present study intends to show the effect of increasing the final demand of selected agricultural products on direct and indirect uses. In order to achieve the objectives of this research, the latest supply and consumption tables (2016) were used. Therefore, first the supply and consumption tables were integrated, then the effect of increasing demand for cereals, livestock and other agricultural products on the consumption of liquefied petroleum gas, diesel, gasoline, electricity, refined and distributed gas and other products were investigated. The results showed that with the increase in demand for agricultural products, diesel is still the most widely used energy carrier directly. But directly and indirectly, liquefied petroleum gas has the highest consumption coefficients among energy carriers for the agricultural sector. Therefore, based on the analysis of the results, it is suggested that appropriate measures be taken according to the type of product, energy consumption ratios, energy resources, as well as various subsidy policies. Also pay sufficient attention to the role of energy carriers such as liquefied gases that are used indirectly.

Keywords

Main Subjects


Abbasi, E. (2014). Energy consumption forecast in Iran's agricultural sector. Financial Economics, 9(32), 81-102.
Ahanghari, A., kamranpour, S. (2016). The effect of financial development and value added on energy consumption in Iran's agriculture and industury sectors. Journal of Applied Economics Studies in Iran, 5(19), 269-286.
Ahmadvand, M.R. and Jalilpiran, H. (2007). The application of the input-output model in the analysis of dependence between agriculture and energy sectors. Economic Journal. 6(63): 5-16.
Bekhet, H. A., & Abdullah, A. (2010). Energy use in agriculture sector: input-output analysis. International Business Research3(3), 111.
Bochtis, D., Sørensen, C. A. G., & Kateris, D. (2019). Energy inputs and outputs in agricultural operations. Operations management in agriculture, 187-196.
Chen, X., Shuai, C., Zhang, Y., & Wu, Y. (2020). Decomposition of energy consumption and its decoupling with economic growth in the global agricultural industry. Environmental Impact Assessment Review, 81, 106364.
Chen, Z. M., & Chen, G. Q. (2011). An overview of energy consumption of the globalized world economy. Energy Policy39(10), 5920-5928.
Deng, H. M., Wang, C., Cai, W. J., Liu, Y., & Zhang, L. X. (2020). Managing the water-energy-food nexus in China by adjusting critical final demands and supply chains: An input-output analysis. Science of The Total Environment, 720, 137635.
Eurostat/European Commission. (2008). Eurostat Manual of Supply, Use and Input-Output Tables. Office for Official Publications of the European Communities, Luxembourg.
FAO. (2011). “Energy-Smart” Food for People and Climate – Issue paper.
Fei, R., Wang, H., Wen, Z., Yuan, Z., Yuan, K., & Chunga, J. (2021). Tracking factor substitution and the rebound effect of China’s agricultural energy consumption: A new research perspective from asymmetric response. Energy, 216, 119307.
Flammini, A., Puri, M., Pluschke, L., & Dubois, O. (2014). Walking the nexus talk: assessing the water-energy-food nexus in the context of the sustainable energy for all initiative. FAO.
https://pep.moe.gov.ir
IEA. (2010). World Energy Outlook 2010. Paris: OECD/ International Energy Agency.
Kargar-Dehbidi, N., Shafei, S., Tarazkar, M. H., & Bakhshoodeh, M. (2019). Effects of Population Change and Agricultural Value Added on Agricultural Energy Intensity in Iran. Journal of Population Association of Iran, 13(26), 187-211.
Kargwal, R., Kumar, A., Garg, M. K., & Chanakaewsomboon, I. (2022). A review on global energy use patterns in major crop production systems. Environmental Science: Advances.
Lam, K. L., Kenway, S. J., Lane, J. L., Islam, K. N., & de Berc, R. B. (2019). Energy intensity and embodied energy flow in Australia: An input-output analysis. Journal of Cleaner Production, 226, 357-368.
Lenzen, M., & Rueda-Cantuche, J. M. (2012). A note on the use of supply-use tables in impact analyses. SORT-Statistics and Operations Research Transactions, 139-152.
Liu, L., Huang, G., Baetz, B., Cheng, G., Pittendrigh, S. M., & Pan, S. (2020). Input-output modeling analysis with a detailed disaggregation of energy sectors for climate change policy-making: A case study of Saskatchewan, Canada. Renewable Energy, 151, 1307-1317.
Mahmoodi, S. and jalaee esfand abadi, S. A. (2017). The Effect of Energy Intensity on Economy Sectors by Input-Output Approach. Economic Growth and Development Research, 7(28), 127-140.
 Martinho, V. J. P. D. (2021). Direct and indirect energy consumption in farming: Impacts from fertilizer use. Energy236, 121504.
Mikkola, H. J., & Ahokas, J. (2010). Indirect energy input of agricultural machinery in bioenergy production. Renewable Energy35(1), 23-28.
Miller, R. E., & Blair, P. D. (2009). Input-output analysis: foundations and extensions. Cambridge university press.
Moghaddasi, R., & AnoushehPour, A. A. (2016). Energy consumption and total factor productivity growth in Iranian agriculture. Energy Reports, 2, 218-220.
Pachauri, S., & Spreng, D. (2002). Direct and indirect energy requirements of households in India. Energy policy30(6), 511-523.
Pyatt, G., & Round, J. I. (1979). Accounting and fixed price multipliers in a social accounting matrix framework. The Economic Journal, 89(356), 850-873.
Raeeni, A. A. G., Hosseini, S., & Moghaddasi, R. (2019). How energy consumption is related to agricultural growth and export: An econometric analysis on Iranian data. Energy Reports, 5, 50-53.
Shepard, J. U., & Pratson, L. F. (2020). Hybrid input-output analysis of embodied energy security. Applied energy279, 115806.
Sun, C., Chen, Z., Guo, Z., & Wu, H. (2022). Energy rebound effect of various industries in China: Based on hybrid energy input-output model. Energy, 261, 125147.
Zhang, L., Pang, J., Chen, X., & Lu, Z. (2019). Carbon emissions, energy consumption and economic growth: Evidence from the agricultural sector of China's main grain-producing areas. Science of the Total Environment, 665, 1017-1025.