Addressing agricultural energy poverty to enhance farmers' profitability and productivity: Policy interventions for global food security challenges

Yongming Huang, Qaiser Abbas and Muhammad Sharif

Energy Policy, 2025, vol. 206, issue C

Abstract: Despite international attention on energy access and rural development, empirical research that directly links agricultural energy poverty (AEP) with farmer's productivity and profitability remains limited. Utilizing primary data from farmers across Pakistan, the study employs Structural Equation Modeling (SEM) and bootstrapping techniques to analyze the direct and indirect impacts of AEP, energy costs (DEC-IEC), and agricultural technology (AgroTech) on farm outcomes. The Multidimensional Energy Poverty Index (MEPI) adapted for agriculture, underpins the measurement framework. Results confirm that agricultural energy poverty negatively affects both farm productivity and profitability. Conversely, efficient management of direct and indirect energy costs and adopting agro-technologies significantly enhances profitability. Productivity is mediating and amplifying the benefits of energy cost management and technological adoption. This study fills the critical literature gap by empirically quantifying the direct and indirect pathways through which agricultural energy poverty influences farmers' profitability. Thus,it presents a comprehensive framework for policymakers and stakeholders to address energy poverty for sustainable rural development.

Keywords: Agricultural-producer energy poverty; Farmer profitability; Agricultural technology adoption; Energy efficiency; Renewable energy in agriculture (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:206:y:2025:i:c:s0301421525002034

DOI: 10.1016/j.enpol.2025.114696

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