Abstract The interconnections between energy, agriculture and environment in rural India are analyzed in this paper using a systems perspective. Rural areas of developing countries use biomass for fuel, fodder, fertilizer and other purposes, and it is necessary to understand the fuel-fodder–fertilizer relationships for optimal biomass allocation. The allocation is explored using a linear programming model. First, the model is validated by simulating it using data for the year 1990–1991. The model is then applied for the year 2000, and several scenarios are generated to obtain answers to various policy questions. The results show that it is necessary to increase fertilizer consumption, to increase efficiencies of cooking stoves, to improve livestock feed, and/or to decrease population growth for maximizing the revenue generated in the rural system of India. It shows that when the prices of fertilizers increase, a large increase in kerosene requirements can be expected. It also points to the necessity to increase kerosene consumption to reduce emissions (due to non-commercial fuels) and soil fertility loss. For example, the carbon dioxide emissions associated with the scenarios range from 137.50 to 62.50 million tons (in carbon equivalent terms) for the high and low cases, respectively. Correspondingly, kerosene consumption ranges from 0.18 to 15.49 kilotons (kT).
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