| Abstract: | This study looks at how farmers adjust their consumption of electricity in response to changes in the price of energy. A demand model is specified and estimated. The conclusions suggest that the price of electricity is a factor impacting the quantity of electricity demanded by farmers for irrigation and for other (non-irrigation) uses, but there is no indication that other types of energy are substitutes for electricity. Additionally, the number of acres irrigated is an important factor driving the demand for electricity for irrigation and the number of acres planted is a factor determining the demand for electricity for other uses. Finally, the estimated models of electricity for irrigation and electricity for other uses are structurally stable over the period 1971–92. |
