How Does Financial Risk Affect Agricultural Energy Demand

Financial risk severely influences farmers' production decisions. It negatively affects farmers’ access to credit resources resulting in inability to response timely resource demands. This study aims to examine the relationship between financial risk and energy demand in the agricultural sector in Iran and selected developing countries. To do this, economic, financial, and political risk indicators have been defined and applied for two groups of oil-exporting and non-oil-exporting developing countries during the period ۲۰۱۰-۲۰۲۰. The Smooth Transition Regression model was used to analyze data. This approach allows for examining non-linear relationships between variables. The findings suggest that financial risk (financial, economic, and political) is associated with an increase in per capita energy demand in the agricultural sector. The magnitude of the impact of variables in non-oil-exporting countries is generally estimated to be higher than in oil-exporting countries.

کلیدواژه ها:

Energy Consumption ، Financial Risk ، Smooth Transition Regression ، Agriculture