Estimating the Demand for Diesel in Agriculture Sector of Iran

Lotfali Agheli

Article Details

Estimating the Demand for Diesel in Agriculture Sector of Iran

Authors:

Lotfali Agheli

Publisher:

İlhan ÖZTÜRK

Journal:

International Journal of Energy Economics and Policy 2015 Vol.5 Issue 3, pp.660-667

Document Type:

Article

Publication Date:

8/2015

Document Language:

Turkish

Document ID (Org No.):

2000816446

Frequency:

Bimonthly

eISSN:

2146-4553

Abstract:

 

This paper estimates per capita demand for diesel by agricultural sector in Iran using Auto-Regressive Distributed Lags (ARDL) method over 1973-2012. The findings indicate that the demand for diesel is relatively inelastic in response to changes in its price, electricity acts as substitute input for diesel, diesel is a necessary input in agriculture, and mechanization index, despite having expected positive sign, fails to explain variations in diesel use. In addition, there is a long-run relationship among variables. According to Error Correction Model, the speed of adjustment in short-run distortions towards long-run equilibrium is moderate. The findings show that government policy on cutting energy subsidies is not enough for reducing diesel consumption in Iranian agricultural sector. Thus, non-price measures such as innovations in inter-fuel substitution technologies and applying efficient machineries are recommended to manage energy uses in agriculture.

Article Details

Estimating the Demand for Diesel in Agriculture Sector of Iran

Authors: Lotfali Agheli

Publisher: İlhan ÖZTÜRK

Journal: International Journal of Energy Economics and Policy 2015 Vol.5 Issue 3, pp.660-667

Document Type: Article

Publication Date: 8/2015

Document Language: Turkish

Document ID (Org No.): 2000816446

Frequency: Bimonthly

eISSN: 2146-4553

Issues

Authors:

Lotfali Agheli

Publisher:

İlhan ÖZTÜRK

Journal:

International Journal of Energy Economics and Policy 2015 Vol.5 Issue 3, pp.660-667

Document Type:

Article

Publication Date:

8/2015

Document Language:

Turkish

Document ID (Org No.):

2000816446

Frequency:

Bimonthly

eISSN:

2146-4553