Energy Efficiency, Energy Conservation and Determinants in the Agricultural Sector in Emerging Economies

Abstract

Improving energy efficiency and conservation is integral to sustain agricultural growth in emerging economies. This paper investigates the energy efficiency and energy-saving potential of the agricultural sector of 27 emerging economies using a stochastic frontier approach and Shephard distance function, and their determinants are examined using the Tobit quantile regression model. Results revealed that energy efficiency in the agricultural sector fluctuated during the period from 1998 to 2017. The median average energy efficiency was estimated at 0.74, and the cumulative energy-saving potential was estimated at 542.80 million tons of oil equivalent (Mtoe), which can be achieved by eliminating energy inefficiency alone. Differences exist in energy efficiency and energy-saving potential across continents, with higher potential in Asia and lower potential in Europe. Economic structure, urbanization and GDP per capita have negative influences on agricultural energy efficiency. Energy mix and pesticide use are significant drivers of energy efficiency, while the ratio of agricultural land that has varied influences different quantiles. Policy implications include optimization of the energy mix, economic structure and pesticide use.