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The impact of agriculture and renewable energy on climate change in Central and East European Countries

Author

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  • Nicoleta Mihaela Florea

    (Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, Craiova, Romania)

  • Roxana Maria Bădîrcea

    (Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, Craiova, Romania)

  • Ramona Costina Pîrvu

    (Department of Economics, Accounting and International Business, Faculty of Economics and Business Administration, University of Craiova, Craiova, Romania)

  • Alina Georgiana Manta

    (Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, Craiova, Romania)

  • Marius Dalian Doran

    (Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, Craiova, Romania)

  • Elena Jianu

    (Department of Finance, Accounting and Economics, University of Pitesti, Pitesti, Romania)

Abstract

According to the objectives of the European Union concerning the climate changes, Member States should take all the necessary measures in order to reduce the greenhouse gas emissions. The aim of this study is to identify the causality relations between greenhouse gases emissions, added value from agriculture, renewable energy consumption, and economic growth based on a panel consisting of 11 states from the Central and Eastern Europe (CEECs) in the period between 2000 and 2017. The Autoregressive Distributed Lag (ARDL) method was used to estimate the long-term relationships among the variables. Also a Granger causality test based on the ARDL - Error Correction Model (ECM) and a Pairwise Granger causality test were used to identify the causality relationship and to detect the direction of causality among the variables. The results obtained reveal, in the long term, two bidirectional relationships between agriculture and economic growth and two unidirectional relationships from agriculture to greenhouse gas emissions and renewable energy. In the short term, four unidirectional relationships were found from agriculture to all the variables in the model and one unidirectional relationship from renewable energy to greenhouse gas emissions.

Suggested Citation

  • Nicoleta Mihaela Florea & Roxana Maria Bădîrcea & Ramona Costina Pîrvu & Alina Georgiana Manta & Marius Dalian Doran & Elena Jianu, 2020. "The impact of agriculture and renewable energy on climate change in Central and East European Countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(10), pages 444-457.
    • Handle: RePEc:caa:jnlage:v:66:y:2020:i:10:id:250-2020-agricecon
    DOI: 10.17221/250/2020-AGRICECON
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