Does agricultural development induce environmental pollution in E7? A myth or reality

Abstract

Environmental degradation caused by various human activities has been a subject of attention over the globe. There is a concern on how to maintain a clean environment and at the same time achieve optimum production of food and non-food products amidst global energy demand. To this end, this study examines the impact of agricultural development, energy use, and economic growth on CO2 emissions in the emerging seven countries that comprises China, India, Brazil, Mexico, Russia, Indonesia, and Turkey for the annual time frequency from 1990 to 2016. The study uses a battery of econometrics techniques for soundness of analysis the consist of pooled mean group autoregressive distributed lag methodology, dynamic ordinary least squares, and fully modified ordinary least squares as estimation techniques alongside Dumitrescu and Hurlin causality test for the direction of causality analysis. Empirical results revealed that value-added agriculture and economic growth are drivers of CO2 emission in the E7 countries, and the rise in renewable energy causes a reduction in CO2 emissions, while in the short run, economic growth has a positive impact on emissions in the focus countries. Causality analysis shows that there is a feedback causality between economic growth and emissions, between value-added agriculture and energy usage, between emission and value-added agriculture, and between economic growth and agricultural development. Furthermore, energy use does not cause emissions directly; it causes economic growth and value-added agriculture which causes emissions. This position aligns with the advocacy of the United Nations Sustainable Development Goal (UN-SDG) Targets 7 and 13 of clean energy access and mitigation of climate changes issues.