IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i9p2688-d230235.html
   My bibliography  Save this article

Incorporating Forests, Agriculture, and Energy Consumption in the Framework of the Environmental Kuznets Curve: A Dynamic Panel Data Approach

Author

Listed:
  • Rajan Parajuli

    (Department of Forestry and Environmental Resources, North Carolina State University, Raleigh, NC 27695, USA)

  • Omkar Joshi

    (Department of Natural Resource Ecology and Management, Oklahoma State University, Stillwater, OK 74078, USA)

  • Tek Maraseni

    (Institute for Life Sciences and the Environment (ILSE), University of Southern Queensland, Toowoomba 4350, Australia)

Abstract

Based on country-specific panel data from 1990–2014 for 86 different countries, we quantify the effects of forests and agricultural land in CO 2 emissions, using the framework of the Environmental Kuznets Curve (EKC). The results from the dynamic panel data method reveal that forests are an important determinant in reducing CO 2 emissions globally, but the effects vary by region. All else constant, we estimate a 0.11% decline in CO 2 emissions per 1% increase in the forest area globally. However, the agricultural sector is found to be a true CO 2 emitter. Our study provides additional empirical evidence for the roles of forests in regulating atmospheric CO 2 , further reinforcing the importance of forests in global climate change policies.

Suggested Citation

  • Rajan Parajuli & Omkar Joshi & Tek Maraseni, 2019. "Incorporating Forests, Agriculture, and Energy Consumption in the Framework of the Environmental Kuznets Curve: A Dynamic Panel Data Approach," Sustainability, MDPI, vol. 11(9), pages 1-11, May.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:9:p:2688-:d:230235
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/9/2688/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/9/2688/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Halicioglu, Ferda, 2009. "An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey," Energy Policy, Elsevier, vol. 37(3), pages 1156-1164, March.
    2. anonymous, 1995. "Does the bouncing ball lead to economic growth?," Regional Update, Federal Reserve Bank of Atlanta, issue Jul, pages 1-2,4-6.
    3. Lantz, Van, 2002. "Is there an Environmental Kuznets Curve for clearcutting in Canadian forests?," Journal of Forest Economics, Elsevier, vol. 8(3), pages 199-212.
    4. Pao, Hsiao-Tien & Tsai, Chung-Ming, 2010. "CO2 emissions, energy consumption and economic growth in BRIC countries," Energy Policy, Elsevier, vol. 38(12), pages 7850-7860, December.
    5. Lean, Hooi Hooi & Smyth, Russell, 2010. "CO2 emissions, electricity consumption and output in ASEAN," Applied Energy, Elsevier, vol. 87(6), pages 1858-1864, June.
    6. Poudel, Biswo N. & Paudel, Krishna P. & Bhattarai, Keshav, 2009. "Searching for an Environmental Kuznets Curve in Carbon Dioxide Pollutant in Latin American Countries," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(1), pages 1-15, April.
    7. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    8. Chengzhang Liao & Yiqi Luo & Changming Fang & Bo Li, 2010. "Ecosystem Carbon Stock Influenced by Plantation Practice: Implications for Planting Forests as a Measure of Climate Change Mitigation," PLOS ONE, Public Library of Science, vol. 5(5), pages 1-6, May.
    9. Fodha, Mouez & Zaghdoud, Oussama, 2010. "Economic growth and pollutant emissions in Tunisia: An empirical analysis of the environmental Kuznets curve," Energy Policy, Elsevier, vol. 38(2), pages 1150-1156, February.
    10. Brendan Mackey & I. Colin Prentice & Will Steffen & Joanna I. House & David Lindenmayer & Heather Keith & Sandra Berry, 2013. "Untangling the confusion around land carbon science and climate change mitigation policy," Nature Climate Change, Nature, vol. 3(6), pages 552-557, June.
    11. Arouri, Mohamed El Hedi & Ben Youssef, Adel & M'henni, Hatem & Rault, Christophe, 2012. "Energy consumption, economic growth and CO2 emissions in Middle East and North African countries," Energy Policy, Elsevier, vol. 45(C), pages 342-349.
    12. Arild Angelsen & Thomas K. Rudel, 2013. "Designing and Implementing Effective REDD + Policies: A Forest Transition Approach," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(1), pages 91-113, January.
    13. C.-Y. Cynthia Lin & Zachary D. Liscow, 2013. "Endogeneity in the Environmental Kuznets Curve: An Instrumental Variables Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(2), pages 268-274.
    14. Araujo, Claudio & Bonjean, Catherine Araujo & Combes, Jean-Louis & Combes Motel, Pascale & Reis, Eustaquio J., 2009. "Property rights and deforestation in the Brazilian Amazon," Ecological Economics, Elsevier, vol. 68(8-9), pages 2461-2468, June.
    15. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    16. Kaika, Dimitra & Zervas, Efthimios, 2013. "The Environmental Kuznets Curve (EKC) theory—Part A: Concept, causes and the CO2 emissions case," Energy Policy, Elsevier, vol. 62(C), pages 1392-1402.
    17. Narayan, Paresh Kumar & Narayan, Seema, 2010. "Carbon dioxide emissions and economic growth: Panel data evidence from developing countries," Energy Policy, Elsevier, vol. 38(1), pages 661-666, January.
    18. Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
    19. Ahdi Noomen Ajmi & Ghassen El Montasser & Duc Khuong Nguyen, 2014. "Carbon emissions - income relationships with structural breaks: the case of the Middle East and North African countries," Working Papers 2014-296, Department of Research, Ipag Business School.
    20. Jayanthakumaran, Kankesu & Verma, Reetu & Liu, Ying, 2012. "CO2 emissions, energy consumption, trade and income: A comparative analysis of China and India," Energy Policy, Elsevier, vol. 42(C), pages 450-460.
    21. Jalil, Abdul & Mahmud, Syed F., 2009. "Environment Kuznets curve for CO2 emissions: A cointegration analysis for China," Energy Policy, Elsevier, vol. 37(12), pages 5167-5172, December.
    22. Chien-Chiang Lee & Yi-Bin Chiu & Chia-Hung Sun, 2009. "Does One Size Fit All? A Reexamination of the Environmental Kuznets Curve Using the Dynamic Panel Data Approach," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 751-778.
    23. Dinda, Soumyananda, 2005. "A theoretical basis for the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 53(3), pages 403-413, May.
    24. Dhakal, Maheshwar & Masuda, Misa, 2009. "Local pricing system of forest products and its relations to equitable benefit sharing and livelihood improvement in the lowland community forestry program in Nepal," Forest Policy and Economics, Elsevier, vol. 11(4), pages 221-229, July.
    25. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    26. Shafik, Nemat, 1994. "Economic Development and Environmental Quality: An Econometric Analysis," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 757-773, Supplemen.
    27. Shafik, Nemat & Bandyopadhyay, Sushenjit, 1992. "Economic growth and environmental quality : time series and cross-country evidence," Policy Research Working Paper Series 904, The World Bank.
    28. Culas, Richard J., 2007. "Deforestation and the environmental Kuznets curve: An institutional perspective," Ecological Economics, Elsevier, vol. 61(2-3), pages 429-437, March.
    29. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    30. Yang, Guangfei & Sun, Tao & Wang, Jianliang & Li, Xianneng, 2015. "Modeling the nexus between carbon dioxide emissions and economic growth," Energy Policy, Elsevier, vol. 86(C), pages 104-117.
    31. Bhattarai, Madhusudan & Hammig, Michael, 2001. "Institutions and the Environmental Kuznets Curve for Deforestation: A Crosscountry Analysis for Latin America, Africa and Asia," World Development, Elsevier, vol. 29(6), pages 995-1010, June.
    32. Acaravci, Ali & Ozturk, Ilhan, 2010. "On the relationship between energy consumption, CO2 emissions and economic growth in Europe," Energy, Elsevier, vol. 35(12), pages 5412-5420.
    33. Chhetri, Bir Bahadur Khanal & Lund, Jens Friis & Nielsen, Øystein Juul, 2012. "The public finance potential of community forestry in Nepal," Ecological Economics, Elsevier, vol. 73(C), pages 113-121.
    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. Anh-Tu Nguyen & Shih-Hao Lu & Phuc Thanh Thien Nguyen, 2021. "Validating and Forecasting Carbon Emissions in the Framework of the Environmental Kuznets Curve: The Case of Vietnam," Energies, MDPI, vol. 14(11), pages 1-38, May.
    2. KWAKWA, Paul Adjei & ALHASSAN, Hamdiyah & ADZAWLA, William, 2020. "The Long-Run Environmental Effect Of Aquaculture And Food Trade In Egypt," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 23(2), October.
    3. Adekoya, Oluwasegun B. & Ajayi, Gbenga E. & Suhrab, Muhammad & Oliyide, Johnson A., 2022. "How critical are resource rents, agriculture, growth, and renewable energy to environmental degradation in the resource-rich African countries? The role of institutional quality," Energy Policy, Elsevier, vol. 164(C).
    4. Raihan, Asif, 2023. "The influences of renewable energy, globalization, technological innovations, and forests on emission reduction in Colombia," Innovation and Green Development, Elsevier, vol. 2(4).
    5. Ghazala Aziz & Rida Waheed & Majid Ibrahim Alsaggaf, 2023. "Investigating the Impact of Green Natural Resources and Green Activities on Ecological Footprint: A Perspective of Saudi Vision 2030," Sustainability, MDPI, vol. 15(11), pages 1-19, May.
    6. Nelė Jurkėnaitė & Tomas Baležentis & Dalia Štreimikienė, 2022. "The sustainability prism of structural changes in the European Union agricultural system: The nexus between production, employment and energy emissions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 145-158, January.
    7. Xolmurotov Fozil Saribayevich & Xolmuratov Xolilla Sariyevich & Sukhrob Davlatov & Hulkar Turobova & Sobirjon Ruziyev, 2024. "Analysis of Factors Affecting CO2 Emissions: In the Case of Uzbekistan," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 207-215, July.
    8. Raihan, Asif, 2023. "Toward sustainable and green development in Chile: Dynamic influences of carbon emission reduction variables," Innovation and Green Development, Elsevier, vol. 2(2).
    9. Rawshan Ara Begum & Asif Raihan & Mohd Nizam Mohd Said, 2020. "Dynamic Impacts of Economic Growth and Forested Area on Carbon Dioxide Emissions in Malaysia," Sustainability, MDPI, vol. 12(22), pages 1-15, November.
    10. Alexandra Soberon & Irene D’Hers, 2020. "The Environmental Kuznets Curve: A Semiparametric Approach with Cross-Sectional Dependence," JRFM, MDPI, vol. 13(11), pages 1-23, November.
    11. Kashif Raza Abbasi & Festus Fatai Adedoyin & Magdalena Radulescu & Khadim Hussain & Sultan Salem, 2022. "The role of forest and agriculture towards environmental fortification: designing a sustainable policy framework for top forested countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 8639-8666, June.
    12. Uju Regina Ezenekwe & Eze A. Eze & Geraldine Ejiaka Nzeribe & Maria Chinecherem Uzonwanne, 2023. "Winning the Environmental Sustainability Crusade: Do Agricultural Development and Public Debt Mitigate Environmental Pollution in Nigeria?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 1481-1497, September.
    13. Raihan, Asif & Pavel, Monirul Islam & Muhtasim, Dewan Ahmed & Farhana, Sadia & Faruk, Omar & Paul, Arindrajit, 2023. "The role of renewable energy use, technological innovation, and forest cover toward green development: Evidence from Indonesia," Innovation and Green Development, Elsevier, vol. 2(1).
    14. Shakila Aziz & Shahriar Ahmed Chowdhury, 2023. "Analysis of agricultural greenhouse gas emissions using the STIRPAT model: a case study of Bangladesh," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 3945-3965, May.
    15. Xi Wu & Yajuan Wang & Hongbo Zhu, 2022. "Does Economic Growth Lead to an Increase in Cultivated Land Pressure? Evidence from China," Land, MDPI, vol. 11(9), pages 1-19, September.
    16. Stavros Tsiantikoudis & Eleni Zafeiriou & Grigorios Kyriakopoulos & Garyfallos Arabatzis, 2019. "Revising the Environmental Kuznets Curve for Deforestation: An Empirical Study for Bulgaria," Sustainability, MDPI, vol. 11(16), pages 1-16, August.
    17. Afia Fahmida Daizy & Mobasshir Anjum & Md. Raied Arman & Tanzina Nazia & Nadir Shah, 2021. "Long-run Impact of Globalization, Agriculture, Industrialization and Electricity Consumption on the Environmental Quality of Bangladesh," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 438-453.
    18. Li Wang & Jie Pei & Jing Geng & Zheng Niu, 2019. "Tracking the Spatial–Temporal Evolution of Carbon Emissions in China from 1999 to 2015: A Land Use Perspective," Sustainability, MDPI, vol. 11(17), pages 1-27, August.
    19. Elisa Toledo & Wilman Santiago Ochoa-Moreno & Rafael Alvarado & Lizeth Cuesta & Muntasir Murshed & Abdul Rehman, 2022. "Forest Area: Old and New Factors That Affect Its Dynamics," Sustainability, MDPI, vol. 14(7), pages 1-17, March.
    20. Asma Awan & Sidra Nawaz, 2022. "Towards Green Growth: Monitoring Progress and Investigating Its Determinants in South Asia," Journal of Economic Impact, Science Impact Publishers, vol. 4(3), pages 252-264.

    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 & Avik Sinha, 2019. "Environmental Kuznets curve for CO2emissions: a literature survey," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(1), pages 106-168, January.
    2. Iftikhar Yasin & Nawaz Ahmad & M. Aslam Chaudhary, 2020. "Catechizing the Environmental-Impression of Urbanization, Financial Development, and Political Institutions: A Circumstance of Ecological Footprints in 110 Developed and Less-Developed Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(2), pages 621-649, January.
    3. Shahbaz, Muhammad & Sinha, Avik, 2019. "Environmental Kuznets Curve for CO2 emission: A survey of empirical literature," MPRA Paper 100257, University Library of Munich, Germany, revised 2019.
    4. Shahbaz, Muhammad & Haouas, Ilham & Hoang, Thi Hong Van, 2019. "Economic growth and environmental degradation in Vietnam: Is the environmental Kuznets curve a complete picture?," Emerging Markets Review, Elsevier, vol. 38(C), pages 197-218.
    5. Barra, Cristian & Zotti, Roberto, 2016. "Investigating the impact of national income on environmental pollution. International evidence," MPRA Paper 74149, University Library of Munich, Germany.
    6. Balsalobre-Lorente, Daniel & Shahbaz, Muhammad & Roubaud, David & Farhani, Sahbi, 2018. "How economic growth, renewable electricity and natural resources contribute to CO2 emissions?," Energy Policy, Elsevier, vol. 113(C), pages 356-367.
    7. Tiba, Sofien & Omri, Anis, 2017. "Literature survey on the relationships between energy, environment and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1129-1146.
    8. Kais, Saidi & Sami, Hammami, 2016. "An econometric study of the impact of economic growth and energy use on carbon emissions: Panel data evidence from fifty eight countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1101-1110.
    9. Sofien, Tiba & Omri, Anis, 2016. "Literature survey on the relationships between energy variables, environment and economic growth," MPRA Paper 82555, University Library of Munich, Germany, revised 14 Sep 2016.
    10. Muhammad Bilal Khan & Hummera Saleem & Malik Shahzad Shabbir & Xie Huobao, 2022. "The effects of globalization, energy consumption and economic growth on carbon dioxide emissions in South Asian countries," Energy & Environment, , vol. 33(1), pages 107-134, February.
    11. Tiwari, Aviral Kumar & Shahbaz, Muhammad & Adnan Hye, Qazi Muhammad, 2013. "The environmental Kuznets curve and the role of coal consumption in India: Cointegration and causality analysis in an open economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 519-527.
    12. Onafowora, Olugbenga A. & Owoye, Oluwole, 2014. "Bounds testing approach to analysis of the environment Kuznets curve hypothesis," Energy Economics, Elsevier, vol. 44(C), pages 47-62.
    13. Kaika, Dimitra & Zervas, Efthimios, 2013. "The Environmental Kuznets Curve (EKC) theory—Part A: Concept, causes and the CO2 emissions case," Energy Policy, Elsevier, vol. 62(C), pages 1392-1402.
    14. Khadiga Mohamed El-Aasar & Shaimaa A. Hanafy, 2018. "Investigating the Environmental Kuznets Curve Hypothesis in Egypt: The Role of Renewable Energy and Trade in Mitigating GHGs," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 177-184.
    15. Seker, Fahri & Ertugrul, Hasan Murat & Cetin, Murat, 2015. "The impact of foreign direct investment on environmental quality: A bounds testing and causality analysis for Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 347-356.
    16. Cristian Barra & Roberto Zotti, 2018. "Investigating the non-linearity between national income and environmental pollution: international evidence of Kuznets curve," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(1), pages 179-210, January.
    17. Alexandra-Anca Purcel, 2020. "New insights into the environmental Kuznets curve hypothesis in developing and transition economies: a literature survey," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(4), pages 585-631, October.
    18. Ozcan, Burcu, 2013. "The nexus between carbon emissions, energy consumption and economic growth in Middle East countries: A panel data analysis," Energy Policy, Elsevier, vol. 62(C), pages 1138-1147.
    19. Saida Daly & Mohamed Abdouli, 2023. "The Nexus between Environmental Quality, Economic Growth, and Trade Openness in Saudi Arabia (1990-2017)," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 579-598, July.
    20. Saboori, Behnaz & Sulaiman, Jamalludin & Mohd, Saidatulakmal, 2012. "Economic growth and CO2 emissions in Malaysia: A cointegration analysis of the Environmental Kuznets Curve," Energy Policy, Elsevier, vol. 51(C), pages 184-191.

    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:jsusta:v:11:y:2019:i:9:p:2688-:d:230235. 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.