Hostname: page-component-78c5997874-dh8gc Total loading time: 0 Render date: 2024-11-10T11:47:54.194Z Has data issue: false hasContentIssue false
  • English
  • Français

Determinants of agricultural emissions: panel data evidence from a global sample

Published online by Cambridge University Press:  01 September 2020

Canh Phuc Nguyen Open the ORCID record for Canh Phuc Nguyen [Opens in a new window] ,
Thai-Ha Le Open the ORCID record for Thai-Ha Le [Opens in a new window] ,
Christophe Schinckus Open the ORCID record for Christophe Schinckus [Opens in a new window]  and
Thanh Dinh Su
Canh Phuc Nguyen
Affiliation:
University of Economics Ho Chi Minh City, 59C Nguyen Dinh Chieu Street, District 3, Ho Chi Minh City, Vietnam
Thai-Ha Le*
Affiliation:
Fulbright School of Public Policy and Management, Fulbright University Vietnam, Ho Chi Minh City, Vietnam Mekong Development Research Institute, Hanoi, Vietnam IPAG Business School, Paris, France
Christophe Schinckus
Affiliation:
Taylor's University, Selangor Darul Ehsan, Malaysia
Thanh Dinh Su
Affiliation:
University of Economics Ho Chi Minh City, 59C Nguyen Dinh Chieu Street, District 3, Ho Chi Minh City, Vietnam
*
*Corresponding author. E-mail: ha.le@fulbright.edu.vn
Get access Rights & Permissions [Opens in a new window]

Abstract

Using the panel data of 89 economies from 1995–2012, this study examines the major drivers of agricultural emissions while considering affluence, energy intensity, agriculture value added and economic integration. We find long-run cointegration among the variables. Furthermore, our empirical results based on a dynamic fixed effects autoregressive distributed lag model show that the increases in income and economic integration – proxied by trade and foreign direct investment (FDI) – are the major contributors to higher greenhouse gas (GHG) emissions from agriculture in the short run. Additionally, the increases in income, agriculture value added and energy consumption are the major drivers of agricultural emissions in the long run. Notably, trade openness and FDI inflows have significantly negative effects on GHG emissions from agriculture in the long run. These results apply to methane and nitrous oxide emissions. The empirical findings vary across three subsamples of countries at different development stages.

Keywords

agricultureemissionsglobal samplepollutionQ56O13O17Q53
Type
Research Article
Information
Environment and Development Economics , Volume 26 , Issue 2 , April 2021 , pp. 109 - 130
Copyright
Copyright © The Author(s), 2020. Published by Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abdullahi, MM, Bakar, NABA and Bassan, SB (2015) Determining the macroeconomic factors of external debt accumulation in Nigeria: an ARDL bound test approach. Procedia – Social and Behavioral Sciences 211, 745–752.CrossRefGoogle Scholar
Agovino, M, Casaccia, M, Ciommi, M, Ferrara, M and Marchesano, K (2019) Agriculture, climate change and sustainability: the case of EU-28. Ecological Indicators 105, 525–543.CrossRefGoogle Scholar
Amate, JI and De Molina, MG (2013) ‘Sustainable de-growth’ in agriculture and food: an agro-ecological perspective on Spain's agri-food system (year 2000). Journal of Cleaner Production 38, 27–35.CrossRefGoogle Scholar
Asteriou, D and Monastiriotis, V (2004) What do unions do at the large scale? Macro-economic evidence from a panel of OECD countries. Journal of Applied Economics 7, 27–46.CrossRefGoogle Scholar
Audet, J, Wallin, MB, Kyllmar, K, Andersson, S and Bishop, K (2017) Nitrous oxide emissions from streams in a Swedish agricultural catchment. Agriculture, Ecosystems & Environment 236, 295–303.CrossRefGoogle Scholar
Ben Jebli, M and Ben Youssef, S (2017) The role of renewable energy and agriculture in reducing CO2 emissions: evidence for North Africa countries. Ecological Indicators 74, 295–301.CrossRefGoogle Scholar
Ben Jebli, M and Ben Youssef, S (2019) Combustible renewables and waste consumption, agriculture, CO2 emissions and economic growth in Brazil. Carbon Management 10, 309–321.CrossRefGoogle Scholar
Bennetzen, EH, Smith, P and Porter, JR (2016) Agricultural production and greenhouse gas emissions from world regions – The major trends over 40 years. Global Environmental Change 37, 43–55.CrossRefGoogle Scholar
Bildirici, ME (2014) Relationship between biomass energy and economic growth in transition countries: panel ARDL approach. GCB Bioenergy 6, 717–726.CrossRefGoogle Scholar
Calvin, KV, Beach, R, Gurgel, A, Labriet, M and Loboguerrero Rodriguez, AM (2016) Agriculture, forestry, and other land-use emissions in Latin America. Energy Economics 56, 615–624.CrossRefGoogle Scholar
Caro, D, Mikkelsen, MH and Thomsen, M (2019) Non-CO2 emissions embodied in trade of Danish pork. Carbon Management 10, 323–331.CrossRefGoogle Scholar
Castesana, PS, Dawidowski, LE, Finster, L, Gómez, DR and Taboada, MA (2018) Ammonia emissions from the agriculture sector in Argentina; 2000–2012. Atmospheric Environment 178, 293–304.CrossRefGoogle Scholar
Chen, YH, Wen, XW, Wang, B and Nie, PY (2017) Agricultural pollution and regulation: how to subsidize agriculture? Journal of Cleaner Production 164, 258–264.CrossRefGoogle Scholar
Cole, C, Duxbury, J, Freney, J, Heinemeyer, O, Minami, K, Mosier, A, Paustian, K, Rosenberg, N, Sampson, N and Sauerbeck, D (1997) Global estimates of potential mitigation of greenhouse gas emissions by agriculture. Nutrient Cycling in Agroecosystems 49, 221–228.CrossRefGoogle Scholar
Dace, E and Blumberga, D (2016) How do 28 European Union Member States perform in agricultural greenhouse gas emissions? It depends on what we look at: application of the multi-criteria analysis. Ecological Indicators 71, 352–358.CrossRefGoogle Scholar
De Pinto, A, Li, M, Haruna, A, Hyman, GG, Martinez, MAL, Creamer, B, Kwon, HY, Garcia, JBV, Tapasco, J and Martinez, JD (2016) Low emission development strategies in agriculture. An Agriculture, Forestry, and Other Land Uses (AFOLU) perspective. World Development 87, 180–203.CrossRefGoogle Scholar
Dietz, T and Rosa, EA (1997) Effects of population and affluence on CO2 emissions. Proceedings of the National Academy of Sciences 94, 175–179.CrossRefGoogle ScholarPubMed
Ehrlich, PR and Holdren, JP (1971) Impact of population growth. Science (New York, N.Y.) 171, 1212–1217.CrossRefGoogle ScholarPubMed
Ertugrul, HM, Cetin, M, Seker, F and Dogan, E (2016) The impact of trade openness on global carbon dioxide emissions: evidence from the top ten emitters among developing countries. Ecological Indicators 67, 543–555.CrossRefGoogle Scholar
Fan, Y, Liu, LC, Wu, G and Wei, YM (2006) Analyzing impact factors of CO2 emissions using the STIRPAT model. Environmental Impact Assessment Review 26, 377–395.CrossRefGoogle Scholar
FAO (Food and Agriculture Organization) (2019) The State of Food and Agriculture 2019. Moving forward on Food Loss and Waste Reduction. Rome. License: CC BY-NC-SA 3.0 IGO. Available at http://www.fao.org/3/ca6030en/ca6030en.pdf.Google Scholar
Franks, JR and Hadingham, B (2012) Reducing greenhouse gas emissions from agriculture: avoiding trivial solutions to a global problem. Land Use Policy 29, 727–736.CrossRefGoogle Scholar
Galford, GL, Peña, O, Sullivan, AK, Nash, J, Gurwick, N, Pirolli, G, Richards, M, White, J and Wollenberg, E (2020) Agricultural development addresses food loss and waste while reducing greenhouse gas emissions. Science of the Total Environment 699, 134318.CrossRefGoogle Scholar
Giannadaki, D, Giannakis, E, Pozzer, A and Lelieveld, J (2018) Estimating health and economic benefits of reductions in air pollution from agriculture. Science of the Total Environment 622, 1304–1316.CrossRefGoogle ScholarPubMed
Hodges, RJ, Buzby, JC and Bennett, B (2011) Postharvest losses and waste in developed and less developed countries: opportunities to improve resource use. The Journal of Agricultural Science 149, 37–45.CrossRefGoogle Scholar
Kao, C (1999) Spurious regression and residual-based tests for cointegration in panel data. Journal of Econometrics 90, 1–44.CrossRefGoogle Scholar
Kastratović, R (2019) Impact of foreign direct investment on greenhouse gas emissions in agriculture of developing countries. Australian Journal of Agricultural and Resource Economics 63, 620–642.Google Scholar
Krey, V, O'Neill, BC, Van Ruijven, B, Chaturvedi, V, Daioglou, V, Eom, J, Jiang, L, Nagai, Y, Pachauri, S and Ren, X (2012) Urban and rural energy use and carbon dioxide emissions in Asia. Energy Economics 34, S272–S283.CrossRefGoogle Scholar
Le, TH, Chang, Y and Park, D (2016) Trade openness and environmental quality: international evidence. Energy Policy 92, 45–55.CrossRefGoogle Scholar
Le, TH, Chang, Y and Park, D (2019) Economic development and environmental sustainability: evidence from Asia. Empirical Economics 57, 1129–1156.CrossRefGoogle Scholar
Li, T, Baležentis, T, Makutėnienė, D, Streimikiene, D and Kriščiukaitienė, I (2016) Energy-related CO2 emission in European Union agriculture: driving forces and possibilities for reduction. Applied Energy 180, 682–694.CrossRefGoogle Scholar
Lin, B and Zhu, J (2017) Energy and carbon intensity in China during the urbanization and industrialization process: a panel VAR approach. Journal of Cleaner Production 168, 780–790.CrossRefGoogle Scholar
Luo, Y, Long, X, Wu, C and Zhang, J (2017) Decoupling CO2 emissions from economic growth in agricultural sector across 30 Chinese provinces from 1997 to 2014. Journal of Cleaner Production 159, 220–228.CrossRefGoogle Scholar
Naranpanawa, A (2011) Does trade openness promote carbon emissions? Empirical evidence from Sri Lanka. The Empirical Economics Letters 10, 973–986.Google Scholar
Odhiambo, NM (2009) Energy consumption and economic growth nexus in Tanzania: an ARDL bounds testing approach. Energy Policy 37, 617–622.CrossRefGoogle Scholar
Oenema, O, Velthof, G and Kuikman, P (2001) Technical and policy aspects of strategies to decrease greenhouse gas emissions from agriculture. Nutrient Cycling in Agroecosystems 60, 301–315.CrossRefGoogle Scholar
Pao, HT and Tsai, CM (2011) Multivariate Granger causality between CO2 emissions, energy consumption, FDI (foreign direct investment) and GDP (gross domestic product): evidence from a panel of BRIC (Brazil, Russian Federation, India, and China) countries. Energy 36, 685–693.CrossRefGoogle Scholar
Paul, BK, Frelat, R, Birnholz, C, Ebong, C, Gahigi, A, Groot, JCJ, Herrero, M, Kagabo, DM, Notenbaert, A, Vanlauwe, B and Van Wijk, MT (2018) Agricultural intensification scenarios, household food availability and greenhouse gas emissions in Rwanda: ex-ante impacts and trade-offs. Agricultural Systems 163, 16–26.CrossRefGoogle Scholar
Pazienza, P (2015) The relationship between CO2 and Foreign Direct Investment in the agriculture and fishing sector of OECD countries: evidence and policy considerations. Intelektinė ekonomika 9, 55–66.Google Scholar
Pedroni, P (1999) Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and Statistics 61, 653–670.CrossRefGoogle Scholar
Perlman, J, Hijmans, RJ and Horwath, WR (2013) Modelling agricultural nitrous oxide emissions for large regions. Environmental Modelling & Software 48, 183–192.CrossRefGoogle Scholar
Pesaran, MH (2007) A simple panel unit root test in the presence of cross-section dependence. Journal of Applied Econometrics 22, 265–312.CrossRefGoogle Scholar
Pesaran, MH (2020) General diagnostic tests for cross section dependence in panels. Empirical Economics. doi:10.1007/s00181-020-01875-7.Google Scholar
Pesaran, MH and Shin, Y (1998) An autoregressive distributed-lag modelling approach to cointegration analysis. Econometric Society Monographs 31, 371–413.Google Scholar
Pesaran, MH and Smith, R (1995) Estimating long-run relationships from dynamic heterogeneous panels. Journal of Econometrics 68, 79–113.CrossRefGoogle Scholar
Rafindadi, AA, Muye, IM and Kaita, RA (2018) The effects of FDI and energy consumption on environmental pollution in predominantly resource-based economies of the GCC. Sustainable Energy Technologies and Assessments 25, 126–137.CrossRefGoogle Scholar
Rafiq, S, Salim, R and Nielsen, I (2016) Urbanization, openness, emissions, and energy intensity: a study of increasingly urbanized emerging economies. Energy Economics 56, 20–28.CrossRefGoogle Scholar
Rehman, A, Ozturk, I and Zhang, D (2019) The causal connection between CO2 emissions and agricultural productivity in Pakistan: empirical evidence from an autoregressive distributed lag bounds testing approach. Applied Sciences 9, 1692.CrossRefGoogle Scholar
Ren, S, Yuan, B, Ma, X and Chen, X (2014) International trade, FDI (foreign direct investment) and embodied CO2 emissions: a case study of China's industrial sectors. China Economic Review 28, 123–134.CrossRefGoogle Scholar
Robaina-Alves, M and Moutinho, V (2014) Decomposition of energy-related GHG emissions in agriculture over 1995–2008 for European countries. Applied Energy 114, 949–957.CrossRefGoogle Scholar
Sadorsky, P (2013) Do urbanization and industrialization affect energy intensity in developing countries? Energy Economics 37, 52–59.CrossRefGoogle Scholar
Sebri, M and Abid, M (2012) Energy use for economic growth: a trivariate analysis from Tunisian agriculture sector. Energy Policy 48, 711–716.CrossRefGoogle Scholar
Tian, Y, Zhang, JB and He, YY (2014) Research on spatial-temporal characteristics and driving factor of agricultural carbon emissions in China. Journal of Integrative Agriculture 13, 1393–1403.CrossRefGoogle Scholar
Tubiello, FN, Salvatore, M, Rossi, S, Ferrara, A, Fitton, N and Smith, P (2013) The FAOSTAT database of greenhouse gas emissions from agriculture. Environmental Research Letters 8, 015009.CrossRefGoogle Scholar
Verge, XPC, De Kimpe, C and Desjardins, RL (2007) Agricultural production, greenhouse gas emissions and mitigation potential. Agricultural and Forest Meteorology 142, 255–269.CrossRefGoogle Scholar
Waheed, R, Chang, D, Sarwar, S and Chen, W (2018) Forest, agriculture, renewable energy, and CO2 emission. Journal of Cleaner Production 172, 4231–4238.CrossRefGoogle Scholar
Westerlund, J (2005) New simple tests for panel cointegration. Econometric Reviews 24, 297–316.CrossRefGoogle Scholar
WRI (2015) CAIT Climate Data Explorer. World Resources Institute, Washington, DC. Available at https://www.wri.org/resources/data-visualizations/cait-climate-data-explorer.Google Scholar
Xu, B and Lin, B (2017) Factors affecting CO2 emissions in China's agriculture sector: evidence from geographically weighted regression model. Energy Policy 104, 404–414.CrossRefGoogle Scholar
Zhangwei, L and Xungang, Z (2011) Study on relationship between Sichuan agricultural carbon dioxide emissions and agricultural economic growth. Energy Procedia 5, 1073–1077.CrossRefGoogle Scholar
Zhu, H, Duan, L, Guo, Y and Yu, K (2016) The effects of FDI, economic growth and energy consumption on carbon emissions in ASEAN-5: evidence from panel quantile regression. Economic Modelling 58, 237–248.CrossRefGoogle Scholar
Supplementary material: PDF

Nguyen et al. supplementary material

Online Appendix

Download Nguyen et al. supplementary material(PDF)
PDF 911.3 KB