IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v11y2023i3p85-d1090069.html
   My bibliography  Save this article

Agricultural Economic Growth, Renewable Energy Supply and CO 2 Emissions Nexus

Author

Listed:
  • Tagwi Aluwani

    (Department of Agriculture and Animal Health, School of Agriculture and Life Sciences, University of South Africa, Johannesburg 1709, South Africa)

Abstract

International trade has created more economic growth opportunities in the agriculture sector. The agricultural sector remains key to the South African economy, with a vibrant international market becoming available as the country’s agriculture exports grow. However, the impacts of human-caused global warming have intensified as a result of increased greenhouse gas emissions, notably carbon dioxide (CO 2 ), which negatively affects agricultural productivity and the economy. Considering the future energy resource demands for agricultural productivity due to the expected population growth and the emphasis on environmental remedial actions, the following question presents itself: what impact will a clean energy supply have on the agricultural economy and the environment, notwithstanding that agriculture, as a sector, also has a huge potential to contribute to renewable energy production? This study examines the effect of the nexus of South Africa’s renewable energy supply, CO 2 emissions and trade openness on agricultural economic growth from 1990 to 2021. The nexus provides crucial insights into policies targeted at promoting renewable energy in the agricultural sector by isolating key areas of priority. An autoregressive distributed lag (ARDL) bounds test, fully modified ordinary least square (FMOLS) test, a dynamic ordinary least square (DOLS) test and a canonical cointegrating regression (CCR) econometric analysis were used to estimate the nexus. The results showed that growth in the agricultural sector leads to deterioration in the environment, while international trade benefits the sector. The scale of renewable energy supply slowed down the agricultural economy. The study makes a new contribution in providing empirical evidence for the links between renewable energy supply and agricultural GDP, which can drive policy on renewable energy use in the agricultural sector in South Africa. The paper recommends intentional renewable energy production research and development (R&D) finance focusing on renewable energy human development planning and investments in vocational programmes in higher learning institutes, agricultural renewable energy policy and the creation of green incentive schemes for feedstock producers, especially in rural areas in the agricultural sector.

Suggested Citation

  • Tagwi Aluwani, 2023. "Agricultural Economic Growth, Renewable Energy Supply and CO 2 Emissions Nexus," Economies, MDPI, vol. 11(3), pages 1-24, March.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:3:p:85-:d:1090069
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/11/3/85/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/11/3/85/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luís Miguel Marques & José Alberto Fuinhas & António Cardoso Marques, 2019. "Are There Spillovers from China on the Global Energy-Growth Nexus? Evidence from Four World Regions," Economies, MDPI, vol. 7(2), pages 1-19, June.
    2. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    3. Md. Saiful Islam & Saleh Saud Alsaif & Talal Alsaif, 2022. "Trade Openness, Government Consumption, and Economic Growth Nexus in Saudi Arabia: ARDL Cointegration Approach," SAGE Open, , vol. 12(2), pages 21582440221, May.
    4. Tomiwa Sunday Adebayo & Dervis Kirikkaleli, 2021. "Impact of renewable energy consumption, globalization, and technological innovation on environmental degradation in Japan: application of wavelet tools," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 16057-16082, November.
    5. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    6. Dieudonné Mignamissi & Bernard Nguekeng, 2022. "Trade openness-industrialization nexus revisited in Africa," Economic Change and Restructuring, Springer, vol. 55(4), pages 2547-2575, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Karime Chahuán-Jiménez & Rolando Rubilar-Torrealba & Hanns de la Fuente-Mella & Valeska V. Geldres-Weiss, 2023. "Cluster Analysis and Macroeconomic Indicators and Their Effects on the Evolution of the Use of Clean Energies," Energies, MDPI, vol. 16(22), pages 1-14, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Shahbaz & Syed Jawad Hussain Shahzad & Mantu Kumar Mahalik & Perry Sadorsky, 2018. "How strong is the causal relationship between globalization and energy consumption in developed economies? A country-specific time-series and panel analysis," Applied Economics, Taylor & Francis Journals, vol. 50(13), pages 1479-1494, March.
    2. Tomiwa Sunday Adebayo & Abraham Ayobamiji Awosusi & Seun Damola Oladipupo & Ephraim Bonah Agyekum & Arunkumar Jayakumar & Nallapaneni Manoj Kumar, 2021. "Dominance of Fossil Fuels in Japan’s National Energy Mix and Implications for Environmental Sustainability," IJERPH, MDPI, vol. 18(14), pages 1-20, July.
    3. Zhang, Yu & Zhang, Sufang, 2018. "The impacts of GDP, trade structure, exchange rate and FDI inflows on China's carbon emissions," Energy Policy, Elsevier, vol. 120(C), pages 347-353.
    4. Soumyananda Dinda, 2018. "Production technology and carbon emission: long-run relation with short-run dynamics," Journal of Applied Economics, Taylor & Francis Journals, vol. 21(1), pages 106-121, January.
    5. Baek, Jungho & Cho, Yongsung & Koo, Won W., 2009. "The environmental consequences of globalization: A country-specific time-series analysis," Ecological Economics, Elsevier, vol. 68(8-9), pages 2255-2264, June.
    6. Ozturk, Ilhan & Acaravci, Ali, 2010. "CO2 emissions, energy consumption and economic growth in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 3220-3225, December.
    7. Armenia Androniceanu & Irina Georgescu, 2023. "The Impact of CO 2 Emissions and Energy Consumption on Economic Growth: A Panel Data Analysis," Energies, MDPI, vol. 16(3), pages 1-17, January.
    8. Ramesh Chandra Das & Tonmoy Chatterjee & Enrico Ivaldi, 2022. "Nexus between Housing Price and Magnitude of Pollution: Evidence from the Panel of Some High- and-Low Polluting Cities of the World," Sustainability, MDPI, vol. 14(15), pages 1-18, July.
    9. Faisal Faisal & Ruqiya Pervaiz & Nesrin Ozatac & Turgut Tursoy, 2021. "Exploring the relationship between carbon dioxide emissions, urbanisation and financial deepening for Turkey using the symmetric and asymmetric causality approaches," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 17374-17402, December.
    10. Taimoor Arif Kiani & Samina Sabir & Unbreen Qayyum & Sohail Anjum, 2023. "Estimating the effect of technological innovations on environmental degradation: empirical evidence from selected ASEAN and SAARC countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6529-6550, July.
    11. Jobert, Thomas & Karanfil, Fatih & Tykhonenko, Anna, 2013. "On the structure and form of the GDP–nuclear nexus: New perspectives and new findings," Energy Policy, Elsevier, vol. 62(C), pages 1553-1561.
    12. Hakimi, Abdelaziz & Hamdi, Helmi, 2016. "Trade liberalization, FDI inflows, environmental quality and economic growth: A comparative analysis between Tunisia and Morocco," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1445-1456.
    13. Le Hoang Phong & Dang Thi Bach Van & Ho Hoang Gia Bao, 2018. "The Role of Globalization on CO2 Emission in Vietnam Incorporating Industrialization, Urbanization, GDP per Capita and Energy Use," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 275-283.
    14. Hossain, Md. Emran & Islam, Md. Sayemul & Bandyopadhyay, Arunava & Awan, Ashar & Hossain, Mohammad Razib & Rej, Soumen, 2022. "Mexico at the crossroads of natural resource dependence and COP26 pledge: Does technological innovation help?," Resources Policy, Elsevier, vol. 77(C).
    15. Özgür Bayram Soylu & Tomiwa Sunday Adebayo & Dervis Kirikkaleli, 2021. "The Imperativeness of Environmental Quality in China Amidst Renewable Energy Consumption and Trade Openness," Sustainability, MDPI, vol. 13(9), pages 1-22, April.
    16. Irina Georgescu & Ionuț Nica, 2024. "Evaluating the Determinants of Deforestation in Romania: Empirical Evidence from an Autoregressive Distributed Lag Model and the Bayer–Hanck Cointegration Approach," Sustainability, MDPI, vol. 16(13), pages 1-28, June.
    17. P. Srinivasan & Inder Siddanth Ravindra, 2015. "Causality among Energy Consumption, CO2 Emission, Economic Growth and Trade," Foreign Trade Review, , vol. 50(3), pages 168-189, August.
    18. Vinish Kathuria, 2019. "Growth and Investment: Testing for the Relationship for South Asian Countries," Millennial Asia, , vol. 10(3), pages 337-371, December.
    19. Ahmed, Khalid, 2017. "Revisiting the role of financial development for energy-growth-trade nexus in BRICS economies," Energy, Elsevier, vol. 128(C), pages 487-495.
    20. Cuma Bozkurt & Yusuf Akan, 2014. "Economic Growth, CO2 Emissions and Energy Consumption: The Turkish Case," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 484-494.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:11:y:2023:i:3:p:85-:d:1090069. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.