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Analysis of the Nexus of CO 2 Emissions, Economic Growth, Land under Cereal Crops and Agriculture Value-Added in Pakistan Using an ARDL Approach

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  • Sajjad Ali

    (College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China)

  • Liu Ying

    (College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China
    Hubei Collaborative Innovation Center for Grain Industry, Yangtze University, Jingzhou 434025, China)

  • Tariq Shah

    (Department of Economics & Development Studies, University of Swat, Khyber Pakhtunkhwa 19130, Pakistan)

  • Azam Tariq

    (College of Humanities and Social Sciences, Huazhong Agricultural University, Wuhan 430070, China)

  • Abbas Ali Chandio

    (College of Economics, Sichuan Agricultural University, Chengdu 625014, China)

  • Ihsan Ali

    (College of Plant Science and Technology, Huazhong Agricultural University, Wuhan 430070, China)

Abstract

The present study attempts to explore the correlation between carbon dioxide emissions (CO 2 e), gross domestic product (GDP), land under cereal crops (LCC) and agriculture value-added (AVA) in Pakistan. The study exploits time-series data from 1961 to 2014 and further applies descriptive statistical analysis, unit root test, Johansen co-integration test, autoregressive distributed lag (ARDL) model and pairwise Granger causality test. The study employes augmented Dickey–Fuller (ADF) and Phillips–Perron (PP) tests to check the stationarity of the variables. The results of the analysis reveal that there is both short- and long-run association between agricultural production, economic growth and carbon dioxide emissions in the country. The long-run results estimate that there is a positive and insignificant association between carbon dioxide emissions, land under cereal crops, and agriculture value-added. The results of the short-run analysis point out that there is a negative and statistically insignificant association between carbon dioxide emissions and gross domestic product. It is very important for the Government of Pakistan’s policymakers to build up agricultural policies, strategies and planning in order to reduce carbon dioxide emissions. Consequently, the country should promote environmentally friendly agricultural practices in order to strengthen its efforts to achieve sustainable agriculture.

Suggested Citation

  • Sajjad Ali & Liu Ying & Tariq Shah & Azam Tariq & Abbas Ali Chandio & Ihsan Ali, 2019. "Analysis of the Nexus of CO 2 Emissions, Economic Growth, Land under Cereal Crops and Agriculture Value-Added in Pakistan Using an ARDL Approach," Energies, MDPI, vol. 12(23), pages 1-18, December.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:23:p:4590-:d:293430
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