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

Area of Science:

• Environmental Science
• Economics
• Energy Policy

Background:

• Global concern exists regarding environmental degradation and balancing production with energy demands.
• Human activities significantly contribute to environmental issues, necessitating sustainable practices.
• The emerging seven (E7) countries face unique challenges in managing emissions alongside development.

Purpose of the Study:

• To investigate the impact of agricultural development, energy use, and economic growth on CO2 emissions in E7 countries (1990-2016).
• To analyze the causal relationships between these key economic and environmental factors.
• To inform policies aligning with UN Sustainable Development Goals (SDGs) 7 and 13.

Main Methods:

• Econometric techniques including Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL).
• Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) for robust estimation.
• Dumitrescu and Hurlin causality test to determine the direction of causality.

Main Results:

• Value-added agriculture and economic growth were identified as significant drivers of CO2 emissions in E7 nations.
• Increased use of renewable energy was found to decrease CO2 emissions.
• Short-term economic growth positively impacted emissions, while a feedback causality existed between economic growth and emissions.

Conclusions:

• Economic growth and agricultural development are key factors influencing CO2 emissions in E7 countries.
• Renewable energy adoption is crucial for mitigating CO2 emissions.
• Energy use indirectly affects emissions through its influence on economic growth and agricultural development, highlighting the need for integrated policy approaches.