Interplays Between Methane Emission and Agricultural Output: Time Series Outcomes for the World's Low- to High-Income Groups

There have been debates among the so-called developed economies and less developed and emerging economies on the issue of ‘who is responsible for' the emission of excessive greenhouse gases (GHGs) into the ambient environment. While methane emissions from agriculture and livestock is one of the important elements of GHGs, it is also required for growth of the agriculture and allied activities for all economic categories. The present study, under this backdrop, examines long run and short run linkages between methane emissions and agriculture outputs for high and low to upper middle-income countries for the period 1981-2012. The results show that the series of methane emissions and agriculture output are cointegrated in the 15 member Organization for Economic Co-operation and Development (OECD) group, low income and middle income countries signifying the responsibilities of these income groups in methane emissions. The responsible countries in the OECD are USA, UK, Japan, Germany, and Italy. Further, in short run dynamics, the Granger Causality results show that methane emissions make a cause to agriculture output for 15OECD and low-income countries, and agricultural output is a cause to methane generation for middle and all low to upper middle income countries. China, India, and Brazil cannot be blamed for making excessive methane generation as both the series are not cointegrated for them.