The focus of our analysis is on nexus issues among energy use, incomes, employment,
investment decisions, and agricultural production for meeting food and feed demands, as well
as health-related effects on rural households. As an example we investigate potential policies,
such as public subsidies for solar panels and increase in non-agricultural employment
opportunities, for meeting energy demands and improving rural livelihoods, using an
agricultural household dynamic programming model. The model includes two types of
households that differ in their socio-economic characteristics - poor and rich as measured by
their asset and resource endowments, which are linked through the agricultural contracts
such as wage-labor and payment for irrigation supply. Moreover, we differentiate the
potential impacts of policies at the intra-household level, with special focus of effects on men,
women and children. The case study area is the Uttar Pradesh province of India and the main
data source is the household survey. The study shows that state subsidies for solar panels
improve energy use, agricultural production and incomes of both households in comparison
to the business-as-usual case. Also, interactions among two households with agricultural
contracts increase. The policy scenario on increasing non-agricultural employment
opportunities do not change much energy use pattern of rural households but substantially
improves the income levels of poor household, where such household allocates most of labor
force for non-agricultural work. In contrast, the household that is better endowed with
agricultural production resources looses from such a policy due to less labor available to
manage its farm.