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Panel heterogeneous distribution analysis of trade and modernized agriculture on CO2 emissions: The role of renewable and fossil fuel energy consumption

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  • Samuel A Sarkodie
  • Evans B Ntiamoah
  • Dongmei Li

Abstract

In line with the global target of reducing climate change and its impact, this study explored the causal relationship between CO2 emissions, modernized agriculture, trade openness, aggregate and disaggregate energy consumption in 14 African countries from 1990–2013 using a panel quantile estimation procedure. The empirical results showed that value addition to agricultural commodities declines CO2 emissions in countries with high pollution levels. The study revealed a positive nexus between CO2 emissions and energy consumption homogeneously distributed across quantiles. Trade openness was found to lower CO2 emissions in countries with lower and higher levels of environmental pollution. While fossil fuel energy consumption was found to exacerbate CO2 emissions, renewable energy consumption confirmed its mitigating effect on environmental pollution. The institution of climate‐smart agricultural options will sustainably increase productivity and income while adapting to climate change by reducing greenhouse gas emissions. Diversification of energy technologies with clean and modern energy sources like renewables avoid the over‐dependence on fossil fuels for agricultural purposes. Trade policies can stimulate flows of technology and investment opportunities for specialization in production and economies of scale. Hence, the consideration of policies that boost agricultural sector productivity and create an efficient market for international trade in Africa will help in improving livelihoods.

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  • Samuel A Sarkodie & Evans B Ntiamoah & Dongmei Li, 2019. "Panel heterogeneous distribution analysis of trade and modernized agriculture on CO2 emissions: The role of renewable and fossil fuel energy consumption," Natural Resources Forum, Blackwell Publishing, vol. 43(3), pages 135-153, August.
    • Handle: RePEc:wly:natres:v:43:y:2019:i:3:p:135-153
    DOI: 10.1111/1477-8947.12183
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