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Is there an environmental Kuznets curve for agriculture in Latin America?

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  • Sara A. Wong

Abstract

We use panel unit root and cointegration tests, with dynamic panel estimations, to assess the environmental Kuznets curve (EKC) hypothesis, that is, an inverted U-shaped relationship between emissions from agriculture and growth of 18 Latin America and the Caribbean (LAC) countries for the 1989-2019 period. Results indicate that each series is integrated of order one, and that the series are cointegrated in the two specifications applied. Results suggest an inverted U-shaped relationship between emissions and growth - confirming the EKC - for 10 LAC countries and the region (the 18 countries altogether) when applying the standard framework (relating emissions with growth only). The lack of control for essential policies is a criticism of this parsimonious standard model. However, results support an agricultural EKC for 11 LAC countries, but not for the region, when adding indicators that measure trade openness in agriculture and the use of renewable energy - two important policies in place in LAC during the period of study. Agricultural trade, in most cases, reduces emissions. Results inform improved agricultural climate change policy.

Suggested Citation

  • Sara A. Wong, 2025. "Is there an environmental Kuznets curve for agriculture in Latin America?," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 17(3), pages 276-297.
    • Handle: RePEc:ids:ijsuse:v:17:y:2025:i:3:p:276-297
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