Energy Consumption Management and growth in agriculture sector: An implication for the Environmental Kuznets Curve

This paper tries to unfold the short-run and long-run relationship between Energy consumption management in agriculture and agricultural growth in Iran over the period 1976-2006 using Vector Auto Regressive and Vector Error Correction Model. The results indicate that there is unidirectional causality running from agriculture Energy consumption to agriculture value added. Results show that energy consumption has a significant positive long-run impact on Iran agricultural growth. This study also evaluates relationship between agriculture energy consumption per capita and agriculture growth by implication of Environmental Kuznets Curve Hypothesis. Results show that during the considered period, energy consumption per capita as an indicator of environmental problem keeps on growing in time as long as the agriculture sector keeps on growing.