Agriculture, trade openness and emissions: an empirical analysis and policy options

Abstract

This article investigates the impact of sectoral production allocation, energy usage patterns and trade openness on pollutant emissions in a panel consisting of high-, medium-and low-income countries. Extended STIRPAT (Stochastic Impact by Regression on Population, Affluence and Technology) and EKC (Environmental Kuznets Curve) models are conducted to systematically identify these factors driving CO2 emissions in these countries during the period 1980-2010. To this end, the study employs three different heterogeneous, dynamic mean group-type linear panel models and one nonlinear panel data estimation procedure that allows for cross-sectional dependence. While affluence, nonrenewable energy consumption and energy intensity variables are found to drive pollutant emissions in linear models, population is also found to be a significant driver in the nonlinear model. Both service sector and agricultural value-added levels play a significant role in reducing pollution levels, whereas industrialisation increases pollution levels. Although the linear model fails to track any significant impact of trade openness, the nonlinear model finds trade liberalisation to significantly affect emission reduction levels. All of these results suggest that economic development, and especially industrialisation strategies and environmental policies, need to be coordinated to play a greater role in emission reduction due to trade liberalisation.

The role of renewable energy and agriculture in reducing CO 2 emissions: Evidence for North Africa countries

“…This result is similar to that reached by Rafiq et al (2015) for a panel of 53 countries, and differs from that of Ben Jebli and Ben Youssef (2015b) for the case of Tunisia. Our Granger causality results show the existence of a short and long-run unidirectional causality running from renewable energy to agriculture indicating the important role played by renewable energy in improving agricultural production.…”

Panel heterogeneous distribution analysis of trade and modernized agriculture on CO2 emissions: The role of renewable and fossil fuel energy consumption

“…The empirical results of trade openness are consistent with the aggregate model while fossil fuel energy consumption is consistent with Rafiq et al (2016b). In contrast, an increase in agricultural value added and renewable energy consumption declines carbon dioxide emissions by 0.49% and 0.36%-consistent with the aggregate energy model and Liobikien_ e and Butkus (2019) and Rafiq et al (2016a).…”

“…In contrast, an increase in agricultural value added and renewable energy consumption declines carbon dioxide emissions by 0.49% and 0.36%—consistent with the aggregate energy model and Liobikienė and Butkus () and Rafiq et al . ().…”

Investigating the Interdependence Between Non-Hydroelectric Renewable Energy, Agricultural Value Added, and Arable Land Use in Argentina

“…This result might be due to the more renewable energy use and/or more efficient energy use of agriculture in comparison to the other economic sectors in Argentina. This result is similar to that of Rafiq et al (2016) and that of Ben Jebli and Ben Youssef (2017b), but it is contrary to the finding of Ben Jebli and Ben Youssef (2017a) study on Tunisia. Interestingly, increasing agricultural land use reduces CO 2 emissions.…”

“…Several econometric papers, not concerned by Argentina, have studied the relationship between energy consumption and agriculture (Dogan et al, 2016;Karkacier et al, 2006;Mushtaq et al, 2007;Qureshi et al, 2016;Rafiq et al, 2016;Sebri and Abid, 2012;Shahbaz et al, 2016;Tang and Shahbaz, 2013;Turkeful and Unakitan, 2011). We conclude from these researches on the existence of a causal relationship between energy consumption and agricultural value added and that energy is needed for agricultural production.…”