The Effect of Energy Consumption on Agricultural Added Value: Panel Data Analysis for EU Member Transition Economies

Energy plays an important role in maintaining vital activities. Like other sectors, with the developing technology, energy is used in agricultural activities. Therapid and uncontrolled increase in energy consumption in agricultural production,has sometimes led to a decrease in the efficiency of the energy use. Inefficient use of energy, which is a production input, leads to an increase in production costs. The increase in production costs leads to a relative decrease in output and such negativities exposing producers to loss of income.. Within the framework of the analysis, 10 countries who are called as transition economies and EU member as wellwere included in the study. Dynamic panel data method was used in the study which analyzed the period between 2009-2017. As a result of the analysis, it was observed that agricultural energy consumption had a positive effect on agricultural value added.