The influence of agricultural policy on carbon emissions in selected OECD countries

Global agriculture is actively impacted by policies which affect the composition and location of produce and the production methods. This paper examines how agricultural policy affects carbon emissons in 27 OECD countries over the period 2000 to 2020. This research deploys the Generalised Methods of Moments (GMM) and Pooled Mean Group (PMG) to analyse panel data. The study findings demonstrate that the indicators of agricultural policy (agricultural financial support and producer protection ratio) predominantly display a significantly positive relationship with emissions in the short term. Still, that link is mostly significantly negative in the long run. As such, agricultural policy is a driver of emissions in the short run, which is in line with the extended STIRPAT model, although in the long run, the variable seizes to be a driver. Economic growth, transport services and human capital support that their association is positively significant in the short run, chiefly negative and significant in the long run. There is overwhelming evidence that renewable energy is negatively and significantly associated with emissions in both periods. This research analysis is imperative to create vital cornerstones towards a complete understanding of the effects of agricultural policy on developing green economies.