Diversity of activity, A Strategy to Promote Energy Productivity in Agriculture (Causality analytical approaches Toda - Yamamoto and Bounds test)

Document Type : Research Paper


Nowadays, continuous growth of developed countries and the rapid growth in developing countries owe to use of energy. But in recent decades, the need to move towards sustainable development, public thought to increase energy productivity to upgrade the production by the specific energy consumption. On the other hand, researchers believe that the move to a diversified production system and economies of scope due to it can increase the productivity of inputs. Hence, the present study has been checked the causal relationship between energy productivity and diversity of activities in the agricultural sector by the Toda-Yamamoto causality and Bounds tests. The results indicate the existence of a unidirectional causal relationship from energy productivity to diversity of activities. So, due to the positive influence of energy productivity from diversity of agricultural activities, it is suggested that government encourage agricultural system to more diversification instead of various supporting policies from specific products.


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