The Consequences of Economic Growth, Energy Use, and Agricultural Methane Emissions on Environmental Deterioration in Sweden.

Abstract

The purpose of this study is to look into how environmental deterioration in Sweden changed from 1990 to 2021 as a result of energy use, economic growth, and agricultural methane emissions. The empirical analysis makes use of various econometric methods, including the bounds test for autoregressive distributed lags (ARDL). The tests for Granger causality and FMOLS are applied to the data. At levels, the variables are non-stationary, other than renewable energy, in light of the results of the unit root and stationarity tests, despite the fact that they remain stationary in the I (1) or first-differences form. The five variables are shown to be related over the long term by the ARDL limits F-test. Additionally, both a rise in the usage of fossil fuels and clean energy usage has a major long-term impact on environmental deterioration. The coefficients of the estimated error correction component are also negative and statistically significant. Additionally, the research employs Granger causality tests to investigate the variables' causal connections. The outcomes demonstrated that use of clean energy does not contribute to CO2 emissions, whereas GDP, fossil fuel consumption, and agricultural methane emission do. The study’s also addressed a vacuum in the literature by using the ARDL method to look at this important topic for Sweden.