The Impacts of Climate Change, Carbon Dioxide Emissions (CO2) and Renewable Energy Consumption on Agricultural Economic Growth in South Africa: ARDL Approach

Abstract

One of the most affected economies by climate change is the agricultural sector. Climate change measured by temperature and precipitation has an impact on agricultural output, which in turn affects the economy of the sector. It is anticipated that using renewable energy will lower carbon emissions that are directly related to climate change. The main objective of this study was to evaluate the impact of carbon dioxide emissions (CO2), renewable energy usage, and climate change on South Africa’s agricultural sector from 1972 to 2021. The nexus was estimated using an Auto Regressive-Distributed Lag (ARDL) Bounds test econometric technique. In the short run, findings indicated that climate change reduces agricultural economic growth and carbon dioxide emissions increase as agricultural economic growth increases. The use of renewable energy was insignificant in the short and long run. Carbon dioxide emissions granger causes temperature and renewable energy unilateral. An ARDL analysis was performed to evaluate the short and long-term relationship between agricultural economic growth, climate change, carbon dioxide emissions and renew able energy usage. The study adds new knowledge on the effects of climate change and carbon emissions on the agricultural economy alongside the use of renewable energy which can be used to inform economic policy on climate change and the energy nexus in the agricultural sector. Study findings point to the prioritization of biomass commercialization, rural and commercial farming sector bioenergy regulations and socioeconomic imperatives research is crucial in order to promote inclusive participation in the production of renewable energy.

Socioeconomic determinants of modern climate change adaptation of small-scale vegetable farmers in Bohlabela District, Mpumalanga Province

“…However, this requires funding, which is inaccessible to small-scale farmers. Although small-scale farmers have the potential to meaningfully participate in producing renewable energy through bioenergy, the lack of green energy investment in the small-scale agricultural sector hampers this opportunity (Tagwi, 2022Tagwi and Chipfupa, 2022). Most small-scale farmers in Limpopo province in cooperatives reported an inability to cope with electricity costs due to 3-phase transformers installed in the farming plots by ESKOM which attracts higher rates (Maiwashe, 2017).…”

“…Climate change is widely caused by fossil fuel energy use currently dominating the world. The future food demand will put a strain on natural resources, especially energy sources (Tagwi, 2022), further making food security a challenge. Considering that most rural households depend on agriculture for livelihood across Africa, this will put immense pressure on the agricultural sector.…”

Electricity Consumption and Food Production in Malaysia: Implication for the Sustainable Development Goal 2

“…The findings indicated that decreasing agricultural productivity as an outcome of global warming brought on by carbon emissions had negatively impacted food availability. Tagwi (2022) assessed the effects of environmental degradation, green power use, and greenhouse gas pollution on South Africa's farming industry from 1972 to 2021. An econometric method called the Auto Regressive-Distributed Lag (ARDL) Bounds test was used to analyze the association.…”

Scaling Up Private Sector Financing for Climate Change Adaptation in Zimbabwe: A Brief Literature Review

“…The effects of the climate shocks are being felt harder in developing countries like Zimbabwe (Aluwani, 2022). This is largely attributed to the economic fragility, as well as the lack of technical and institutional capacity.…”