Agricultural practices and quality of environment: evidence for global perspective

  • Awais AnwarEmail author
  • Suleman Sarwar
  • Waqas Amin
  • Noman Arshed
Research Article


The study emphasizes to examine the causal relationship among CO2 emission, agricultural value added, industrial production, urbanization, nuclear energy consumption, and economic growth across the panel of 59 countries. The data is collected from World Bank database over the period of 1982–2015. For econometric estimations, we have divided the sample into different income groups: low income, lower middle income, upper middle income, and higher income. In case of higher income countries, empirical results have reported the unidirectional causality from agricultural value added to CO2 emission, whereas, bidirectional causality between nuclear energy consumption and CO2 emission. Upper-middle-income countries have confirmed the bidirectional causality between CO2 emissions and agricultural added; however, unidirectional causality runs from nuclear consumption to CO2 emission. According to Granger causality estimations, agricultural value added and nuclear energy consumption do not cause the CO2 emission in low income and lower-middle-income countries. Long-run estimations have mentioned that higher agricultural value added leads to increase the CO2 emission, in upper middle income and higher income countries. On contrary, in case of low-income and lower-middle-income countries, agricultural value added has inverse relationship with CO2 emission. Higher nuclear energy consumption tends to reduce the CO2 emission, except the upper-middle-income countries.


CO2 emission Agriculture Renewable energy Urbanization, causality 

JEL Classification

P18 Q19 Q20 



  1. Adamantiades A, Kessides I (2009) Nuclear power for sustainable development: current status and future prospects. Energy Policy 37:5149–5166Google Scholar
  2. Ahmad N, Iqbal A, Mahmood H (2013) CO2 emission, population and industrial growth linkages in selected South Asian countries: a co-integration analysis. World Appl Sci J 21(4):615–622Google Scholar
  3. Akbostanci E, Asik S, Tunc G (2009) The relationship between income and environment in Turkey: Is there an environmental Kuznets curve? Energy Policy 37:861–867Google Scholar
  4. Alam M, Begum I, Buysse J, Huylenbroeck G (2012) Energy consumption, carbon emissions and economic growth nexus in Bangladesh: Cointegration and dynamic causality analysis. Energy Policy 45:217–225Google Scholar
  5. Alam A (2013) Nuclear energy, CO2 emissions and economic growth: the case of developed and developing countries. J Econ Stud 40(6):823–834Google Scholar
  6. Alkhathlan K, Javid M (2013) Energy consumption, carbon emissions and economic growth in Saudi Arabia: an aggregate and disaggregate analysis. Energy Policy 62:1525–1532Google Scholar
  7. Al-mulali U, Saboori B, Ozturk I (2015a) Investigating the environmental Kuznets curve hypothesis in Vietnam. Energy Policy 76:123–131Google Scholar
  8. Al-mulali U, Weng-Wai C, Sheau-Ting L, Mohammed A (2015b) Investigating the environmental Kuznets curve (EKC) hypothesis by utilizing the ecological footprint as an indicator of environmental degradation. Ecol Indic 48:315–323Google Scholar
  9. Alvarez R, Pacala S, Winebrake J, Chameides W, Hamburg S (2012) Greater focus needed on methane leakage from natural gas infrastructure. Proc Natl Acad Sci 109(17):6435–6440Google Scholar
  10. Apergis N, Payne J, Menyah K, Wolde-Rufael Y (2010) On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth. Ecol Econ 69:2255–2260Google Scholar
  11. Banerjee P, Rahman M (2012) Some determinants of carbon dioxide emissions in Bangladesh. International Journal of Green Economics 6(2):205–215Google Scholar
  12. Bekhet H, Matar A, Yasmin T (2017) CO2 emissions, energy consumption, economic growth, and financial development in GCC countries: dynamic simultaneous equation models. Renew Sust Energ Rev 70:117–132Google Scholar
  13. Ben Jebli M, Ben Youssef S (2015) Economic growth, combustible renewables and waste consumption, and CO2 emissions in North Africa. Environ Sci Pollut Res 22:16022–16030Google Scholar
  14. Ben Jebli, M., & Ben Youssef, S. (2016). Renewable energy consumption and agriculture: evidence for cointegration and Granger causality for Tunisian economy. Int J Sust Dev WorldGoogle Scholar
  15. Ben Jebli M, Ben Youssef S (2017) The role of renewable energy and agriculture in reducing CO2 emissions: evidence for North Africa countries. Ecol Indic 74:295–301Google Scholar
  16. Boutabba M (2014) The impact of financial development, income, energy and trade on carbon emissions: evidence from the Indian economy. Econ Model 40:33–41Google Scholar
  17. Breusch T, Pagan A (1980) The LM test and its application to model specification in econometrics. Rev Econ Stud 47(1):239–253Google Scholar
  18. Cai B, Bo X, Zhang L, Boyce J, Zhang Y, Lei Y (2016) Gearing carbon trading towards environmental co-benefits in China: measurement model and policy implications. Glob Environ Chang 39:275–284Google Scholar
  19. Chaitanya, K. (2007). Rapid Economic Growth and Industrialization in India, China & Brazil: At What Cost? (Working Paper No. 897) William Davidson Institute, University of Michigan.Google Scholar
  20. Chang T, Lin S (1999) Grey relation analysis of carbon dioxide emissions from industrial production and energy uses in Taiwan. J Environ Manag 56(4):247–257Google Scholar
  21. Chebbi HE (2010) Agriculture and economic growth in Tunisia. China Agricultural Economic Review 2(1):63–78Google Scholar
  22. Chiu C, Chang T (2009) What proportion of renewable energy supplies is needed to initially mitigate CO2 emissions in OECD member countries? Renew Sust Energ Rev 13:1669–1674Google Scholar
  23. Clark P, Shakun J, Marcott S, Mix A, Eby M (2016) Consequences of twenty-first-century policy for multi-millennial climate and sea-level change. Nat Clim Chang 6:360–369Google Scholar
  24. Dumitrescu E-I, Hurlin C (2012) Testing for Granger non-causality in heterogeneous panels. Econ Model 29(4):1450–1460Google Scholar
  25. Eberhardt M, Teal F (2011) Econometrics for grumblers: a new look at the literature on cross-country growth empirics. J Econ Surv 25(1):109–155Google Scholar
  26. Elliot D (2007) Nuclear or Not? Does Nuclear Power Have a Place in Sustainable Energy Future? Palgrave Macmillan, Houndmills, BasingstokeGoogle Scholar
  27. European Union, C. (2006) A European Strategy for Sustainable, Competitive and Secure Energy. Accessed from </ Accessed 12 Feb 2019
  28. Farhad S, Saffar-Avval M, Younessi-Sinaki M (2008) Efficient design of feedwater heaters network in steam power plants using pinch technology and exergy analysis. Int J Energy Res 32:1–11Google Scholar
  29. Farhani S, Ozturk I (2015) Causal relationship between CO2 emissions, real GDP, energy consumption, financial development, trade openness, and urbanization in Tunisia. Environ Sci Pollut Res 22:15663–15676Google Scholar
  30. Fedoroff N, Cohen J (1999) Plants and population: is there time? Proceedings of the National Academy of Sciences of the United States of America 11:5903-5907Google Scholar
  31. Ferguson, C. (2007). Nuclear energy: balancing benefits and risks. Council of Foreign Relations, (pp. CRS No, 28).Google Scholar
  32. Gazi S, Shahbaz M, Mohamed A, Frédéric T (2014) Financial development and poverty reduction nexus: a cointegration and causality analysis in Bangladesh. Econ Model 36:405–412Google Scholar
  33. Granger CW (1969) Investigating causal relations by econometric models and cross-spectral methods. Econometrica 37(3):424–428Google Scholar
  34. Green, R., Cornell, S., & Scharlemann, J. (2005). A. Balmford, 2005: Farming and the fate of wild nature. Science, 307, 550-555.Google Scholar
  35. Grossman G, Krueger A (1995) Economic Growth and Environment. The. Q J Econ 110(2):353–377Google Scholar
  36. Gujarati, D. (2009). Basic Econometrics. Tata McGraw-Hill Education.Google Scholar
  37. Hamilton S, Kurzman A, Arango C, Jin L, Robertson G (2007) Evidence for carbon sequestration by agricultural liming. Glob Biogeochem Cycles 21:1–12Google Scholar
  38. He Z, Xu S., Shen W, Long R, & Chen H (2016). Impact of urbanization on energy related CO2 emission at different development levels: regional difference in China based on panel estimation. Journal of Cleaner Production, 1-12.Google Scholar
  39. Holly R. (2015). The complicated relationship between agriculture and climate change. Retrieved from Accessed 28 Jan 2019
  40. Hsiao C, Pesaran M, Tahmiscioglu A (1999) Analysis of Panels and Limited Dependent Variables: A Volume in Honour of G. S. Maddala. In: Bayes estimation of short-run coefficients in dynamic panel data models. Cambridge University Press, Cambridge, pp 268–296Google Scholar
  41. Huang J, Pray C, Rozelle S (2002) Enhancing the crops to feed the poor. Nature 418:418–678Google Scholar
  42. International Energy Agency. (2008). World Energy Outlook. Paris, France.Google Scholar
  43. IPCC (2006) Greenhouse Gas Inventory: IPCC Guidelines for National Greenhouse Gas Inventories. United Kingdom Meteorological Office, Bracknell, UKGoogle Scholar
  44. Jalil A, Mahmud S (2009) Environment Kuznets curve for CO2 emissions: a cointegration analysis for China. Energy Policy 37:5167–5172Google Scholar
  45. Jamel L, Derbali A (2016) Do energy consumption and economic growth lead to environmental degradation? Evidence from Asian economies. Cogent Economics & Finance 4(1):1–19Google Scholar
  46. Janzen H (2004) Carbon cycling in earth systems—a soil science perspective. Agric Ecosyst Environ 104:399–417Google Scholar
  47. Jarecki M, Lal R, James R (2005) Crop management effects on soil carbon sequestration on selected farmers’ fields in northeastern Ohio. Soil Tillage Res 81:265–276Google Scholar
  48. Kao C, Chiang M (2000) On the estimation and inference of a cointegrated regression in panel data. Adv Econ 15:179–222Google Scholar
  49. Kasman A, Duman YS (2015) CO2 emissions, economic growth, energy consumption, trade and urbanization in new EU member and candidate countries: a panel data analysis. Econ Model 44:97–103Google Scholar
  50. Koga N, Sawamoto T, Tsuruta H (2006) Life cycle inventory-based analysis of greenhouse gas emissions from arable land farming systems in Hokkaido, northern Japan. Soil Sci Plant Nutr 52:564–574Google Scholar
  51. Lund H, Kempton W (2008) Integration of renewable energy into the transport and electricity sectors through V2G. Energy Policy:3578–3587Google Scholar
  52. Martínez-Zarzoso I, Maruotti A (2011) The impact of urbanization on CO2 emissions: evidence from developing countries. Ecol Econ 70:1344–1353Google Scholar
  53. Michaels S, Tyre A (2012) How indeterminism shapes ecologists’ contributions to managing socioecological systems. Policy Perspective 5:289–295Google Scholar
  54. Narayan P, Smyth R (2007) Energy consumption and real GDP in G7 countries: new evidence from panel cointegration with structural breaks. Energy Econ 30:2331–2341Google Scholar
  55. Nuclear Energy Agency. (2002). Organisation for economic co-operation and development: nuclear energy and the kyoto protocol. Accessed from / Accessed 27 Jan 2019
  56. Oenema O, Wrage N, Velthof G, Groenigen JW, Dolfing J, Kuikman P (2005) Trends in global nitrous oxide emissions from animal production systems. Nutr Cycl Agroecosyst 72:51–65Google Scholar
  57. Omri A, Daly S, Rault C, Chaibi A (2015) Financial development, environmental quality, trade and economic growth: What causes what in MENA countries. Energy Econ 48:242–252Google Scholar
  58. Ozturk I (2010) Energy consumption and economic growth relationship: evidence from panel data for low and middle income countries. Energy Policy 38:4422–4428Google Scholar
  59. Ozturk I, Acaravci A (2011) Electricity consumption and real GDP causality nexus: evidence from ARDL bounds testing approach for 11 MENA countries. Appl Energy 88(8):2885–2892Google Scholar
  60. Pearson P, Palmer M (2000) Atmospheric carbon dioxide concentrations over the past 60 million years. Nature 406:695–699Google Scholar
  61. Pedroni, P. (2001). Purchasing power parity tests in cointegrated panels. he Rev Econ Stat, 727-731.Google Scholar
  62. Pedroni P (2004) Panel cointegration: asymptotic and finite sample properties of pooled time series tests with an application to the purchasing power parity hypothesis. Economet Theor 20:597–625Google Scholar
  63. Pedroni P. (2008). In Nonstationary panel data . IMF Course (not publically available).Google Scholar
  64. Perman R, Stern D (2003) Evidence from panel unit root and cointegration tests that the environmental Kuznets curve does not exist. Aust J Agric Resour Econ 47:325–347Google Scholar
  65. Pesaran H. (2004). General Diagnostic Tests for Cross Section Dependence in Panels. CESifo Working, No. 1229.Google Scholar
  66. Pesaran H (2007) A simple panel unit root test in the presence of cross section dependence. J Appl Econ 22(2):265–312Google Scholar
  67. Pesaran H, Shin Y, Smith R (1999) Pooled mean group estimation of dynamic heterogeneous panels. J Am Stat Assoc 94:621–634Google Scholar
  68. Rafiq S, Salim R, Apergis N (2016) Agriculture, trade openness and emissions: an empirical analysis and policy options. Aust J Agric Resour Econ 60:348–365Google Scholar
  69. Reynolds L, & Wenzlau S (2012, december 21). Climate-Friendly Agriculture and Renewable Energy: Working Hand-in-Hand toward Climate Mitigation. Retrieved from
  70. Sadorsky P (2009) Renewable energy consumption, CO2 emissions and oil prices in the G7 countries. Energy Econ 31(3):456–462Google Scholar
  71. Sadorsky P (2014) The effect of urbanization on CO2 emissions in emerging economies. Energy Econ:147–153Google Scholar
  72. Sarwar S, Chen W, Waheed R (2017) Electricity consumption, oil price and economic growth: global perspective. Renew Sust Energ Rev 76:9–18Google Scholar
  73. Searchinger T, Heimlich R, Houghton R, Dong F, Elobeid A, Fabiosa J, Tokgoz S (2008) Use of U.S. croplands for biofuels increases greenhouse gases through emissions from land-use change. Science 319:1238–1240Google Scholar
  74. Shahbaz M, Lean HH (2012) Does financial development increase energy consumption? The role of industrialization and urbanization in Tunisia. Energy Policy 40:473–479Google Scholar
  75. Shahbaz M, Kumar Tiwari A, Nasir M (2013) The effects of financial development, economic growth, coal consumption and trade openness on CO2 emissions in South Africa. Energy Policy 61:1452–1459Google Scholar
  76. Shahbaz M, Loganathan N, Zeshan M, Zaman K (2015) Does renewable energy consumption add in economic growth? An application of auto-regressive distributed lag model in Pakistan. Renew Sust Energ Rev 44:576–585Google Scholar
  77. Shahbaz M, Loganathan N, Muzaffar AT, Ahmed K, Jabran MA (2016) How urbanization affects CO2 emissions in Malaysia? The application of STIRPAT model. Renew Sust Energ Rev 57:83–93Google Scholar
  78. Shahbaz M, Sarwar S, Chen W, Malik MN (2017) Dynamics of electricity consumption, oil price and economic growth: global perspective. Energy Policy 108:256–270Google Scholar
  79. Sharif Hossain M (2011) Panel estimation for CO2 emissions, energy consumption, economic growth, trade openness and urbanization of newly industrialized countries. Energy Policy 39:6991–6999Google Scholar
  80. Sharma SS (2011) Determinants of carbon dioxide emissions: empirical evidence from 69 countries. Appl Energy 88:376–382Google Scholar
  81. Shi A (2003) The impact of population pressure on global carbon dioxide emissions, 1975–1996: evidence from pooled cross-country data. Ecol Econ 44:29–42Google Scholar
  82. Sims R (2004) Renewable energy: a response to climate change. Sol Energy 76:9–17Google Scholar
  83. Skaza J, Blais B (2014). The Relationship between Economic Growth and Environmental Degradation: Exploring Models and Questioning the Existence of an Environmental Kuznets Curve. = 2346173.
  84. Smith P (2004) Carbon sequestration in croplands: the potential in Europe and the global context. Eur J Agron 20:229–236Google Scholar
  85. Soni P, Taewichit C, Salokhe V (2013) Energy consumption and CO2 emissions in rainfed agricultural production systems of Northeast Thailand. Agric Syst 116:25–36Google Scholar
  86. Soytas U, Sari R, Ewing BT (2007) Energy consumption, income, and carbon emissions in the United States. Ecol Econ 62(3-4):482–489Google Scholar
  87. Toth F, Rogner H (2006) Oil and nuclear power: past, present and future. Energy Econ 28:1–25Google Scholar
  88. Trewavas A (2002) Malthus foiled again and again. Nature 418:668–670Google Scholar
  89. Tunç G, Türüt-Aşik S, Akbostani E (2009) A decomposition analysis of CO2 emissions from energy use: Turkish case. Energy Policy 37(11):4689–4699Google Scholar
  90. USDA ERS. (2017, 10 17). Highest rate of agricultural growth for low-income countries. Retrieved April 22, 2018, from
  91. Vaillancourt K, Labriet M, Loulou R, Waaub J (2008) The role of nuclear energy in long-term climate scenarios: an analysis with the World-Times model. Energy Policy 36:2086–2097Google Scholar
  92. Waheed R, Wei C, Sarwar S, Lv Y (2017) Impact of oil prices on firm stock return: industry-wise. Empir Econ.
  93. Waheed R, Chang D, Sarwar S, Chen W (2018) Forest, agriculture, renewable energy, and CO2 emission. J Clean Prod 172(20):4231–4238Google Scholar
  94. Wang X, Shao Y (2014) Impact of urbanization on energy consumption and carbon dioxide emission: empirical study based on China's provincial panel data during 1995-2011. Technoligical Economics 33(3):55–63Google Scholar
  95. Wang S, Li Q, Fang C, Zhou C (2016) The relationship between economic growth, energy consumption, and CO2 emissions: empirical evidence from China. Sci Total Environ 542:360–371Google Scholar
  96. Westerlund J (2005a) New simple tests for panel cointegration. Econ Rev 24(3):297–316Google Scholar
  97. Westerlund J (2005b) A panel CUSUM test of the null of cointegration. Oxf Bull Econ Stat 67(2):231–262Google Scholar
  98. Westerlund J (2007) Testing for error correction in panel data. Oxf Bull Econ Stat 69(6):709–748Google Scholar
  99. Wolde-Rufael Y (2005) Energy demand and economic growth: the African experience. JournalofPolicyModeling 27:891–903Google Scholar
  100. World Bank (2007) Agriculture for Development. World Bank, Washington D. CGoogle Scholar
  101. World Bank (2009) Development and Climate Change. World Bank, Washington D.CGoogle Scholar
  102. Worrell E, Bernstein L, Roy J, Price L, Harnisch J (2009) Industrial energy efficiency and climate change mitigation. Energ Effic 2:109–123Google Scholar
  103. Xu B, Lin B (2015) How industrialization and urbanization process impacts on CO2 evidence from nonparametric additive. Energy Econ 48:188–202Google Scholar
  104. Xu B, Lin B (2017) Factors affecting CO2 emissions in China’s agriculture sector: evidence from geographically weighted regression model. Energy Policy 104:404–414Google Scholar
  105. Yao J, Zhu P, Zhang Y (2012) Analysis of the relationship between carbon emissions of industrial branch and industrial development in Jilin. Energy Procedia 17:1529–1534Google Scholar
  106. York R, Rosa E, Dietz T (2003) Footprints on the earth: the environmental consequences of modernity. Am Sociol Rev 68:279–300Google Scholar
  107. Zakhidov, A., Lee, J.-K., Fon, H., DeFranco, J., Chatzichristidi, M., Taylor, P., . . . Malliaras, G. (2008). Hydrofluoroethers as orthogonal solvents for the chemical processing of organic electronic materials. Adv Mater, 17, 3481-3484.Google Scholar
  108. Zhang YJ, ChenYi W, WenLi B (2015) The impact of urbanization on carbon emission: empirical evidence in Beijing. Energy Procedia 75:2963–2968Google Scholar

Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  • Awais Anwar
    • 1
    Email author
  • Suleman Sarwar
    • 2
    • 3
  • Waqas Amin
    • 2
  • Noman Arshed
    • 4
  1. 1.Department of EconomicsThe University of LahoreLahorePakistan
  2. 2.School EconomicsShandong UniversityJinanChina
  3. 3.Finance and Insurance DepartmentUniversity of JeddahJeddahSaudi Arabia
  4. 4.Department of EconomicsUniversity of Management & TechnologyLahorePakistan

Personalised recommendations