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Causal analysis of the dynamic link between energy growth and environmental quality for agriculture sector: a piece of evidence from India

Author

Listed:
  • Snovia Naseem

    (Northeast Forestry University)

  • Tong Guang Ji

    (Northeast Forestry University)

  • Umair Kashif

    (Northeast Forestry University)

  • Muhammad Zulqarnain Arshad

    (Lahore Garrison University)

Abstract

The rapid growth of agriculture has led to a significant increase in energy utilization and CO2 emissions. Agriculture performs a pivotal role in improving every country’s economy. The current study has the main objective to analyses the long-run impact of agricultural CO2 discharge on economic growth, energy consumption (electricity utilization in the agriculture sector), financial development, foreign direct investment (FDI), and population for India. For the period 1978–2018, we applied ADF, PP, ERS, and KPSS unit root and Z&A and CMR structural interval tests to evaluate the stability and breaks in the data set. We check the cointegration of study variables through ARDL, Engle–Granger, and Johansen’s cointegration approaches. The findings of the long-run analysis showed a cointegration among the variables, which reveals that an escalation in economic growth and financial development refine the natural environment, while the upsurge in FDI and population further deteriorate the climate in India. However, agricultural sector electricity use shows an insignificant association with CO2 emissions for both periods. On the basis of results, we recommend that legislators should offer an environment that provides opportunities for financial development and economic growth.

Suggested Citation

  • Snovia Naseem & Tong Guang Ji & Umair Kashif & Muhammad Zulqarnain Arshad, 2021. "Causal analysis of the dynamic link between energy growth and environmental quality for agriculture sector: a piece of evidence from India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 7913-7930, May.
    • Handle: RePEc:spr:endesu:v:23:y:2021:i:5:d:10.1007_s10668-020-00953-1
    DOI: 10.1007/s10668-020-00953-1
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