Linkage of Electricity with Agricultural Growth and Technology Factors: An Illustration of India’s Case
Abstract
:1. Introduction
2. Literature on Energy–Growth and Energy–Technology Factor Causality
3. Materials and Methods
3.1. Data
3.2. Methods
3.2.1. Panel Unit Root Tests
3.2.2. Panel Co-Integration Test
3.2.3. Causality from Panel Vector Error Correction Model
3.2.4. Johansen Test for Co-Integration
4. Results
4.1. Overview of the Indian Electricity Sector
4.2. Performance of the Indian Agriculture Sector
4.3. Electricity Consumption and Agriculture Growth Linkage
4.4. Electricity Consumption and Agriculture Technology Factors Linkage
5. Discussion
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Test | GSDP | EC | ||
---|---|---|---|---|
Statistic | Probability | Statistic | Probability | |
Level | ||||
Levin, Lin, and Chu | −2.17 | 0.014 | 0.24 | 0.595 |
Im, Pesaran, and Shin | −1.34 | 0.089 | 1.06 | 0.857 |
ADF-Fisher Chi-square | 45.1 | 0.096 | 41.02 | 0.189 |
PP-Fisher Chi-square | 55.47 | 0.011 | 32.4 | 0.545 |
1st Difference | ||||
Levin, Lin, and Chu | −15.77 | <0.01 | −17.10 | <0.01 |
Im, Pesaran, and Shin | −14.21 | <0.01 | −15.6165 | <0.01 |
ADF-Fisher Chi-square | 188.78 | <0.01 | 246.164 | <0.01 |
PP-Fisher Chi-square | 269.01 | <0.01 | 343.927 | <0.01 |
Test | Statistic | Probability |
---|---|---|
Panel v-Statistic | 4.52 | <0.01 |
Panel Rho-Statistic | −3.01 | <0.01 |
Panel PP-Statistic | −5.74 | <0.01 |
Panel ADF-Statistic | −4.39 | <0.01 |
Group Rho-Statistic | −1.34 | 0.08 |
Group PP-Statistic | −5.75 | <0.01 |
Group ADF-Statistic | −4.75 | <0.01 |
Test | Coefficient | t-Statistic | Probability |
---|---|---|---|
Panel FMOLS | 0.125 | 2.646 | <0.01 |
Long-Run Causality | Short-Run Causality | ||||
---|---|---|---|---|---|
ECT | t-Statistics | Probability | t-Statistics | Probability | |
National level | −0.025 | −2.48923 | 0.013 | 2.646 | 0.008 |
Augmented Dickey–Fuller | Phillip–Perron Test | |||
---|---|---|---|---|
t-Statistic | Probability | t-Statistic | Probability | |
Level | ||||
Electricity | −1.580 | 0.781 | −1.856 | 0.657 |
Fertilizer | −2.179 | 0.486 | −1.832 | 0.669 |
Irrigation | −1.381 | 0.850 | −1.119 | 0.912 |
Cereal | −0.422 | 0.524 | −1.884 | 0.057 |
Tractors | 0.387 | 0.998 | 0.214 | 0.997 |
1st difference | ||||
Electricity | −5.348 | <0.001 | −5.554 | <0.001 |
Fertilizer | −5.039 | <0.001 | −5.027 | <0.001 |
Irrigation | −8.049 | <0.001 | −8.806 | <0.001 |
Cereal | −9.324 | <0.001 | −12.366 | <0.001 |
Tractors | −4.812 | <0.001 | −4.812 | <0.001 |
Electricity vs. | Test Statistic | Probability | Decision |
---|---|---|---|
Fertilizer | |||
11.36 0.90 | 0.05 0.39 | Co-integrated | |
10.46 0.90 | 0.04 0.39 | Co-integrated | |
Irrigation | |||
21.88 1.96 | <0.001 0.18 | Co-integrated | |
19.92 1.96 | <0.001 0.18 | Co-integrated | |
Cereal | |||
8.57 0.01 | 0.19 0.94 | Not co-integrated | |
8.56 0.01 | 0.14 0.94 | Not co-integrated | |
Tractors | |||
17.99 2.79 | 0.005 0.11 | Co-integrated | |
15.20 2.79 | 0.009 0.11 | Co-integrated |
Error Correction Model for Long-Run Causality | Wald Test for Short-Run Causality | ||||
---|---|---|---|---|---|
Electricity vs. | Parameter Estimated | t-Test | Probability | Chi-Square Test | Probability |
Fertilizer | −0.30 | −2.70 | 0.01 | 0.10 | 0.75 |
Irrigation | −0.20 | −1.98 | 0.04 | 0.32 | 0.85 |
Cereal | - | - | - | - | - |
Tractors | −0.05 | −2.97 | <0.001 | 0.78 | 0.37 |
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Kumar, R.R.; Jha, G.K.; Velayudhan, P.K. Linkage of Electricity with Agricultural Growth and Technology Factors: An Illustration of India’s Case. Energies 2022, 15, 2422. https://doi.org/10.3390/en15072422
Kumar RR, Jha GK, Velayudhan PK. Linkage of Electricity with Agricultural Growth and Technology Factors: An Illustration of India’s Case. Energies. 2022; 15(7):2422. https://doi.org/10.3390/en15072422
Chicago/Turabian StyleKumar, Rajeev Ranjan, Girish Kumar Jha, and Praveen Koovalamkadu Velayudhan. 2022. "Linkage of Electricity with Agricultural Growth and Technology Factors: An Illustration of India’s Case" Energies 15, no. 7: 2422. https://doi.org/10.3390/en15072422