IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i9p3900-d1139700.html
   My bibliography  Save this article

Environmental Degradation by Energy–Economic Growth Interlinkages in EU Agriculture

Author

Listed:
  • Eleni Zafeiriou

    (School of Agricultural Development, Faculty of Agricultural and Forestry Sciences, Democritus University of Thrace, GR-68200 Orestiada, Greece)

  • Spyridon Galatsidas

    (School of Forestry and Management of the Environment and Natural Resources, Faculty of Agricultural and Forestry Sciences, Democritus University of Thrace, GR-68200 Orestiada, Greece)

  • Garyfallos Arabatzis

    (School of Forestry and Management of the Environment and Natural Resources, Faculty of Agricultural and Forestry Sciences, Democritus University of Thrace, GR-68200 Orestiada, Greece)

  • Stavros Tsiantikoudis

    (School of Forestry and Management of the Environment and Natural Resources, Faculty of Agricultural and Forestry Sciences, Democritus University of Thrace, GR-68200 Orestiada, Greece)

  • Athanasios Batzios

    (School of Agriculture, Faculty of Agriculture, Forestry and Natural Environment, Aristotle University of Thessaloniki, GR-54124 Thessaloniki, Greece)

Abstract

Energy has the most significant input to agricultural production. The EU’s effort to produce a carbon-neutral economic entity necessitates changes in the energy mix used for agricultural production. Therefore, we employ different variables, in particular, the emissions generated by energy sources, namely coal, natural gas, and diesel gas and their interlinkages with the GDP share generated from agriculture. The data are annual and refer to the period 1970–2020. The ARDL methodology is the econometric tool employed. The year 1990 is identified as a statistically significant break point for all variables, while for the cointegrating equation, the year 2009 appears to play a significant role. Emissions generated by coal appear to play a vital role in the GDP share generated by agriculture and, therefore, should be the main focus of the policy measures taken. Coal should be replaced by other renewable sources or the use of technologies by farmers that improve energy efficiency in order to make the agricultural income stable and to achieve the objective of carbon-neutral agriculture in the EU.

Suggested Citation

  • Eleni Zafeiriou & Spyridon Galatsidas & Garyfallos Arabatzis & Stavros Tsiantikoudis & Athanasios Batzios, 2023. "Environmental Degradation by Energy–Economic Growth Interlinkages in EU Agriculture," Energies, MDPI, vol. 16(9), pages 1-14, May.
  • Handle: RePEc:gam:jeners:v:16:y:2023:i:9:p:3900-:d:1139700
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/9/3900/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/16/9/3900/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhang, Xing-Ping & Cheng, Xiao-Mei, 2009. "Energy consumption, carbon emissions, and economic growth in China," Ecological Economics, Elsevier, vol. 68(10), pages 2706-2712, August.
    2. Eggoh, Jude C. & Bangake, Chrysost & Rault, Christophe, 2011. "Energy consumption and economic growth revisited in African countries," Energy Policy, Elsevier, vol. 39(11), pages 7408-7421.
    3. Gozgor, Giray & Lau, Chi Keung Marco & Lu, Zhou, 2018. "Energy consumption and economic growth: New evidence from the OECD countries," Energy, Elsevier, vol. 153(C), pages 27-34.
    4. Nuno Carlos Leitão & Daniel Balsalobre-Lorente & José María Cantos-Cantos, 2021. "The Impact of Renewable Energy and Economic Complexity on Carbon Emissions in BRICS Countries under the EKC Scheme," Energies, MDPI, vol. 14(16), pages 1-15, August.
    5. Frauke Urban & Johan Nordensvärd, 2018. "Low Carbon Energy Transitions in the Nordic Countries: Evidence from the Environmental Kuznets Curve," Energies, MDPI, vol. 11(9), pages 1-17, August.
    6. Daniel Balsalobre-Lorente & Nuno Carlos Leitão & Festus Victor Bekun, 2021. "Fresh Validation of the Low Carbon Development Hypothesis under the EKC Scheme in Portugal, Italy, Greece and Spain," Energies, MDPI, vol. 14(1), pages 1-17, January.
    7. Odhiambo, Nicholas M., 2009. "Energy consumption and economic growth nexus in Tanzania: An ARDL bounds testing approach," Energy Policy, Elsevier, vol. 37(2), pages 617-622, February.
    8. Domenico Giannone & Michele Lenza & Giorgio E. Primiceri, 2015. "Prior Selection for Vector Autoregressions," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 436-451, May.
    9. Li, Tianxiang & Baležentis, Tomas & Makutėnienė, Daiva & Streimikiene, Dalia & Kriščiukaitienė, Irena, 2016. "Energy-related CO2 emission in European Union agriculture: Driving forces and possibilities for reduction," Applied Energy, Elsevier, vol. 180(C), pages 682-694.
    10. Omri, Anis, 2013. "CO2 emissions, energy consumption and economic growth nexus in MENA countries: Evidence from simultaneous equations models," Energy Economics, Elsevier, vol. 40(C), pages 657-664.
    11. George Kapetanios & Haroon Mumtaz & Ibrahim Stevens & Konstantinos Theodoridis, 2012. "Assessing the Economy‐wide Effects of Quantitative Easing," Economic Journal, Royal Economic Society, vol. 122(564), pages 316-347, November.
    12. Avishek Khanal, 2021. "The Role of ICT and Energy Consumption on Carbon Emissions: An Australian Evidence Using Cointegration Test and ARDL Long-run and Short-run Methodology," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 441-449.
    13. Justas Streimikis & Tomas Baležentis, 2020. "Agricultural sustainability assessment framework integrating sustainable development goals and interlinked priorities of environmental, climate and agriculture policies," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1702-1712, November.
    14. Jaroslava Hlouskova & Martin Wagner, 2006. "The Performance of Panel Unit Root and Stationarity Tests: Results from a Large Scale Simulation Study," Econometric Reviews, Taylor & Francis Journals, vol. 25(1), pages 85-116.
    15. Paresh Kumar Narayan & Stephan Popp, 2013. "Size and power properties of structural break unit root tests," Applied Economics, Taylor & Francis Journals, vol. 45(6), pages 721-728, February.
    16. David I. Stern, 2017. "The environmental Kuznets curve after 25 years," Journal of Bioeconomics, Springer, vol. 19(1), pages 7-28, April.
    17. Shrestha, Min B. & Chowdhury, Khorshed, 2005. "ARDL Modelling Approach to Testing the Financial Liberalisation Hypothesis," Economics Working Papers wp05-15, School of Economics, University of Wollongong, NSW, Australia.
    18. Anelí Bongers, 2020. "The Environmental Kuznets Curve and the Energy Mix: A Structural Estimation," Energies, MDPI, vol. 13(10), pages 1-21, May.
    19. Liton Chandra Voumik & Mohammad Iqbal Hossain & Md. Hasanur Rahman & Raziya Sultana & Rahi Dey & Miguel Angel Esquivias, 2023. "Impact of Renewable and Non-Renewable Energy on EKC in SAARC Countries: Augmented Mean Group Approach," Energies, MDPI, vol. 16(6), pages 1-19, March.
    20. Michele Lenza & Huw Pill & Lucrezia Reichlin, 2010. "Monetary policy in exceptional times [Preventing deflation: Lessons from Japan’s experience in the 1990s]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 25(62), pages 295-339.
    21. Ahmed Altouma & Vladimir Krepl & Bashar Bashir & Hussein Bachir, 2022. "Impact of Economic Growth, Agriculture, and Primary Energy Consumption on Carbon Dioxide Emissions in the Czech Republic," Energies, MDPI, vol. 15(21), pages 1-17, October.
    22. Herrerias, M.J. & Cuadros, A. & Orts, V., 2013. "Energy intensity and investment ownership across Chinese provinces," Energy Economics, Elsevier, vol. 36(C), pages 286-298.
    23. Magdalena Cyrek & Piotr Cyrek, 2022. "Rural Specificity as a Factor Influencing Energy Poverty in European Union Countries," Energies, MDPI, vol. 15(15), pages 1-24, July.
    24. Burakov, D., 2019. "Does Agriculture Matter for Environmental Kuznets Curve in Russia: Evidence from the ARDL Bounds Tests Approach," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 11(3), September.
    25. Haider Mahmood & Nabil Maalel & Muhammad Shahid Hassan, 2021. "Probing the Energy-Environmental Kuznets Curve Hypothesis in Oil and Natural Gas Consumption Models Considering Urbanization and Financial Development in Middle East Countries," Energies, MDPI, vol. 14(11), pages 1-24, May.
    26. Eleni Zafeiriou & Ioannis Mallidis & Konstantinos Galanopoulos & Garyfallos Arabatzis, 2018. "Greenhouse Gas Emissions and Economic Performance in EU Agriculture: An Empirical Study in a Non-Linear Framework," Sustainability, MDPI, vol. 10(11), pages 1-18, October.
    27. Coderoni, Silvia & Esposti, Roberto, 2011. "Long-Term Agricultural GHG Emissions and Economic Growth: The Agricultural Environmental Kuznets Curve across Italian Regions," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114426, European Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eleni Zafeiriou & Konstantinos Spinthiropoulos & Constantinos Tsanaktsidis & Stavros Garefalakis & Konstantinos Panitsidis & Alexandros Garefalakis & Garyfallos Arabatzis, 2022. "Energy and Mineral Resources Exploitation in the Delignitization Era: The Case of Greek Peripheries," Energies, MDPI, vol. 15(13), pages 1-20, June.
    2. Destek, Mehmet Akif, 2016. "Natural gas consumption and economic growth: Panel evidence from OECD countries," Energy, Elsevier, vol. 114(C), pages 1007-1015.
    3. Tiba, Sofien & Omri, Anis, 2017. "Literature survey on the relationships between energy, environment and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1129-1146.
    4. Sofien, Tiba & Omri, Anis, 2016. "Literature survey on the relationships between energy variables, environment and economic growth," MPRA Paper 82555, University Library of Munich, Germany, revised 14 Sep 2016.
    5. Zhang, Qianxue & Liao, Hua & Hao, Yu, 2018. "Does one path fit all? An empirical study on the relationship between energy consumption and economic development for individual Chinese provinces," Energy, Elsevier, vol. 150(C), pages 527-543.
    6. Rashid, Abdul & Kandemir, Ӧzge, 2016. "Variations in energy use and output growth dynamics: An assessment for intertemporal and contemporaneous relationship," Energy, Elsevier, vol. 102(C), pages 388-396.
    7. Villanthenkodath, Muhammed Ashiq & Mahalik, Mantu Kumar, 2021. "Does economic growth respond to electricity consumption asymmetrically in Bangladesh? The implication for environmental sustainability," Energy, Elsevier, vol. 233(C).
    8. Wesseh, Presley K. & Lin, Boqiang, 2016. "Can African countries efficiently build their economies on renewable energy?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 161-173.
    9. Sheilla Nyasha & Yvonne Gwenhure & Nicholas M Odhiambo, 2018. "Energy consumption and economic growth in Ethiopia: A dynamic causal linkage," Energy & Environment, , vol. 29(8), pages 1393-1412, December.
    10. Daiva Makutėnienė & Algirdas Justinas Staugaitis & Bernardas Vaznonis & Gunta Grīnberga-Zālīte, 2023. "The Relationship between Energy Consumption and Economic Growth in the Baltic Countries’ Agriculture: A Non-Linear Framework," Energies, MDPI, vol. 16(5), pages 1-22, February.
    11. Domenico Giannone & Michele Lenza & Lucrezia Reichlin, 2019. "Money, Credit, Monetary Policy, and the Business Cycle in the Euro Area: What Has Changed Since the Crisis?," International Journal of Central Banking, International Journal of Central Banking, vol. 15(5), pages 137-173, December.
    12. Oryani, Bahareh & Koo, Yoonmo & Rezania, Shahabaldin & Shafiee, Afsaneh, 2021. "Investigating the asymmetric impact of energy consumption on reshaping future energy policy and economic growth in Iran using extended Cobb-Douglas production function," Energy, Elsevier, vol. 216(C).
    13. Antonio M. Conti & Andrea Nobili & Federico M. Signoretti, 2018. "Bank capital constraints, lending supply and economic activity," Temi di discussione (Economic working papers) 1199, Bank of Italy, Economic Research and International Relations Area.
    14. Acheampong, Alex O., 2018. "Economic growth, CO2 emissions and energy consumption: What causes what and where?," Energy Economics, Elsevier, vol. 74(C), pages 677-692.
    15. Omri, Anis & Kahouli, Bassem, 2014. "Causal relationships between energy consumption, foreign direct investment and economic growth: Fresh evidence from dynamic simultaneous-equations models," Energy Policy, Elsevier, vol. 67(C), pages 913-922.
    16. Wesseh, Presley K. & Lin, Boqiang, 2020. "Energy substitution and technology costs in a transitional economy," Energy, Elsevier, vol. 203(C).
    17. Menegaki, Angeliki N., 2014. "On energy consumption and GDP studies; A meta-analysis of the last two decades," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 31-36.
    18. Xiuquan Huang & Xiaocang Xu & Qingqing Wang & Lu Zhang & Xin Gao & Linhong Chen, 2019. "Assessment of Agricultural Carbon Emissions and Their Spatiotemporal Changes in China, 1997–2016," IJERPH, MDPI, vol. 16(17), pages 1-15, August.
    19. Salahuddin, Mohammad & Gow, Jeff, 2014. "Economic growth, energy consumption and CO2 emissions in Gulf Cooperation Council countries," Energy, Elsevier, vol. 73(C), pages 44-58.
    20. Kais Saidi & Sami Hammami, 2016. "Economic growth, energy consumption and carbone dioxide emissions: recent evidence from panel data analysis for 58 countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 361-383, January.

    More about this item

    Keywords

    agricultural income; energy; EU; ARDL;
    All these keywords.

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:16:y:2023:i:9:p:3900-:d:1139700. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.