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Do agricultural activities induce carbon emissions? The BRICS experience

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Abstract

This study investigates the environmental Kuznets curve (EKC) hypothesis for Brazil, Russia, India, China and South Africa (BRICS) over the period 1990–2014, while considering agricultural activities, energy use, trade openness and mobile use as driving forces of environmental degradation. The empirical results verify an inverted U-shaped connection between carbon emissions and economic growth. This study confirms the unfriendly impact of agriculture on the environment. Electricity consumption and trade openness likewise exhibit similar impacts on carbon emissions. Mobile use however reduces pollution. A unique revelation from this study is that the interaction between electricity consumption and agricultural activities has an additional pernicious effect on the environment. The methodologies applied for testing the impact of selected independent variables on carbon emissions in BRICS are the Dynamic Ordinary Least Squares (DOLS) and the Fully Modify Ordinary Least Square (FMOLS) for long run regression. Empirical evidence confirms that agriculture exerts a negative impact on the environment in BRICS countries. This study therefore recommends the adoption of cleaner energy processes and enabling high-tech and clean foreign investment.

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Notes

  1. More insight into the EKC hypothesis, interested reader can see Kijima et al. (2010), Pasten and Figueroa (2012), Hajko et al. (2018) and Shahbaz and Sinha (2018).

  2. For the want of space more insights into panel unit root test. Interested readers can see bibliography section for references of lead papers.

  3. The scale effect (Fig. 1) reflects the effect of increased production or consumption resulting from trade opening or freer trade on carbon emissions (Aydin 2016). Therefore, trade openness increases economic activity and, hence, energy consumption.

  4. Agriculture is one of the greatest contributors to global warming, generating nearly one-third of global anthropogenic greenhouse gas emissions (FAO 2003).

  5. The BRICS countries accounted for 33% of world energy use and nearly 40% of global emissions in 2014: the Brazil (1.4%), the Russia (5.2%), India (6.2%), the China (25.9%) and South Africa (1.2%). Countries on CO2 emissions per capita reveal that China has the lowest carbon intensity (1.88 kg/USD) and Russia has the highest CO2 emissions per capita (11.56 tCO2/capita) (World Bank 2018).

  6. While in 1990, BRICS accounted for 3% of global trade and, in 2014, managed to reach about 15% of the global exports and 14% of global imports of commodities (World Bank 2018).

  7. The SMARTer-2030 forecasts that ICT might facilitate a 20% reduction of global carbon emissions by 2030, i.e. holding pollution to recent levels (Accenture Strategy 2015).

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Authors and Affiliations

  1. Department of Political Economy and Public Finance, Economic and Business Statistics and Economic Policy, University of Castilla La Mancha, Ciudad Real, Spain

    Daniel Balsalobre-Lorente

  2. Department of Applied Economics, International Economy Institute, University of Alicante, Alicante, Spain

    Oana M. Driha

  3. Department of Economics, Eastern Mediterranean University, North Cyprus, Turkey

    Festus Victor Bekun

  4. Department of Economics, Eastern Mediterranean University, North Cyprus, Turkey

    Olawumi Abeni Osundina

  5. Department of Economics, Babcock University, Ilishan-Remo, Ogun State, Nigeria

    Olawumi Abeni Osundina

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  1. Daniel Balsalobre-Lorente
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Balsalobre-Lorente, D., Driha, O.M., Bekun, F.V. et al. Do agricultural activities induce carbon emissions? The BRICS experience. Environ Sci Pollut Res 26, 25218–25234 (2019). https://doi.org/10.1007/s11356-019-05737-3

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