Declining Energy Intensity in the U.S. Agricultural Sector: Implications for Factor Substitution and Technological Change

Suh, Dong Hee

doi:10.3390/su71013192

Cited by 9 publications

(2 citation statements)

References 27 publications

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“…Takeshima et al [41] explored the substitution relationship between energy and labor in southern Nigeria, and found that the substitution relationship between them was beneficial to increasing farmers' income. Suh [42] found that energy-capital and energy-labor in U.S. agriculture exhibited substitutability between 2000 and 2011, with rising energy prices reducing their intensity of use and output contribution. This paper provides empirical research for studying the substitution relationships of production factors in Chinese agriculture Table 7.…”

Section: Substitution Elasticitiesmentioning

confidence: 99%

How to Maintain Sustainable Development of China’s Agriculture under the Restriction of Production Resources? Research with Respect to the Effect on Output of the Substitution of Input Factors

Liu

et al. 2022

Energies

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China agricultural development has been facing the problem of resource constraints because its resources per capita such as land and energy are relatively lower than the global average. By applying the provincial agricultural panel data from 2000 to 2015 and fixed effect model based on the translog production function, this paper estimates both output elasticities and substitution elasticities of agricultural inputs, which may provide insights into sustainable agricultural development. The results show that, except for capital, the output elasticities of other production factors are all positive. Energy has always played an important role in agricultural production, whose elasticity in agriculture increased from 0.0203 in 2000 to 0.1694 in 2015. We also find a severe scarcity of land, and the high intensity of energy in the field of agriculture. Moreover, there exists a substitute relationship between all factors, which means that in the short term, one production factor can be employed to replace another to maintain agricultural development. From the empirical results of this paper, some policy suggestions are proposed as follows: it is crucial that more attention should be placed on land and to plan energy use wisely. In addition, on account of the current situation in China, the input of labor force should be stepped up and energy should be used more efficiently to make up for the shortage of land resources. The empirical results and policy suggestions in this paper may benefit the sustainable development of China’s agricultural economy.

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Section: Substitution Elasticitiesmentioning

confidence: 99%

How to Maintain Sustainable Development of China’s Agriculture under the Restriction of Production Resources? Research with Respect to the Effect on Output of the Substitution of Input Factors

Liu

et al. 2022

Energies

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“…The use of labor has been replaced either by machinery and agricultural chemicals, such as fertilizers and pesticides or by purchased contract labor services [16,17]. In addition, rising energy prices have forced the sector to endure increasing energy costs under the producers' budget constraints [18], and the agricultural sector has substituted chemicals for land to intensify productivity as land becomes scarce relative to other inputs [19,20]. The composition changes in input usage were attributed to rising and volatile input prices and unproductive weather conditions, which seemed to put pressure on production costs.…”

Section: Introductionmentioning

confidence: 99%

Examining the Input and Output Linkages in Agricultural Production Systems

Suh

Moss

2021

Agriculture

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This paper conducts a comprehensive analysis of the agricultural sector’s resource allocation and production decisions. This paper uses the differential systems with quasi-fixity to evaluate the complete agricultural production system, which examines the input and output linkages in terms of elasticities. The differential systems are estimated using the maximum likelihood estimation technique based on the two-step profit-maximizing procedure in theory. The results reveal that livestock production requires more intermediate inputs, but crop production depends on all the inputs, such as labor, capital, and intermediate inputs. In addition, the results show that input demand is inelastic, indicating that the agricultural sector has little flexibility in adjusting the demand for inputs in response to changes in input prices. Substitutable relationships among labor, capital, and intermediate inputs exist, which may reduce the pressures on production costs when input prices rise. Regarding the quasi-fixed input, land expansion changes the composition of labor and intermediate inputs, showing that the agricultural sector reduces the intensive margin when it pursues the extensive margin. Furthermore, the results show that agricultural supply is not very responsive to the respective price changes. Along with the inelastic output supply, there exist substitutable relationships between livestock and crop supply, showing that relative price changes can alter output composition in supply. The agricultural sector also reallocates more land areas into crop production rather than livestock production.

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Sustainable energy changeover in Pakistan: prospects, progress, and policies

Raza,

Cucculelli

2024

Environ Sci Pollut Res

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Declining Energy Intensity in the U.S. Agricultural Sector: Implications for Factor Substitution and Technological Change

Cited by 9 publications

References 27 publications

How to Maintain Sustainable Development of China’s Agriculture under the Restriction of Production Resources? Research with Respect to the Effect on Output of the Substitution of Input Factors

How to Maintain Sustainable Development of China’s Agriculture under the Restriction of Production Resources? Research with Respect to the Effect on Output of the Substitution of Input Factors

Examining the Input and Output Linkages in Agricultural Production Systems

Sustainable energy changeover in Pakistan: prospects, progress, and policies

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