The Role of Renewable and Nonrenewable Energy on Agricultural Economics in Indonesia

Abstract

Recently, the prominent involvement of energy in the agriculture sector significantly influences agriculture economics and needs researchers’ focus. Hence, the current article examines the impact of renewable energy production (REP) and renewable energy consumption (REC), fossil fuel energy consumption (FFEC) and energy import and use on the agriculture economics in Indonesia using data from 1986 to 2020. The current research has used the Augmented Dickey-Fuller test for checking the unit root and autoregressive distributed lag to test the nexus among constructs. The results revealed that REP and REC, FFEC and energy import and use have a positive association with agriculture economics in Indonesia. This study provides guidelines to the policymakers while developing regulations related to the improvement of agriculture economics.