IDEAS home Printed from https://ideas.repec.org/a/sae/emeeco/v16y2024i3p340-370.html
   My bibliography  Save this article

Is Agricultural Production Responsible for Environmental Degradation in India? Implications for Sustainability Based on Panel Data Analysis

Author

Listed:
  • Swati Sinha Babu

Abstract

The study aims to investigate the impact of agricultural production on environmental degradation in the case of India, an emerging market economy, based on time series data from 1990 to 2020. Methane (CH 4 ), nitrous oxide (N 2 O), and carbon dioxide (CO 2 ) emissions have been used as indicators of degradation. Autoregressive distributive lag bound tests examine the long-run cointegrating relationship among the variables. To investigate the existence of the environmental Kuznets curve (EKC) between agricultural production and CH 4 , N 2 O, and CO 2 , we used a fully modified ordinary least squares (FMOLS) technique, and the robustness of the results of FMOLS were checked by dynamic ordinary least squares estimators. We also used Granger causality to check for unidirectional and bidirectional causalities. Results indicate an inverted U-shaped relationship in the case of both CH 4 and N 2 O emission, thus confirming the EKC hypothesis. The relationship of CO 2 emission with agricultural production does not verify the EKC hypothesis, and we find a U-shaped relation in the long-run. Lastly, policy measures have been suggested to mitigate greenhouse gas emissions from agricultural activities that may help attain a more sustainable economy. JEL Classification Q1, Q22, Q23, Q53, C33

Suggested Citation

  • Swati Sinha Babu, 2024. "Is Agricultural Production Responsible for Environmental Degradation in India? Implications for Sustainability Based on Panel Data Analysis," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 16(3), pages 340-370, September.
    • Handle: RePEc:sae:emeeco:v:16:y:2024:i:3:p:340-370
    DOI: 10.1177/09749101241239107
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09749101241239107
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09749101241239107?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Muhammed Ashiq Villanthenkodath & Mohini Gupta & Seema Saini & Malayaranjan Sahoo, 2021. "Impact of Economic Structure on the Environmental Kuznets Curve (EKC) hypothesis in India," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-17, December.
    2. Abrham Tezera Gessesse & Ge He, 2020. "Analysis of carbon dioxide emissions, energy consumption, and economic growth in China," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(4), pages 183-192.
    3. Esso, Loesse Jacques & Keho, Yaya, 2016. "Energy consumption, economic growth and carbon emissions: Cointegration and causality evidence from selected African countries," Energy, Elsevier, vol. 114(C), pages 492-497.
    4. Goodness C. Aye & Prosper Ebruvwiyo Edoja, 2017. "Effect of economic growth on CO2 emission in developing countries: Evidence from a dynamic panel threshold model," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1379239-137, January.
    5. Ernest Baba Ali & Valery P. Anufriev, 2020. "The causal relationship between agricultural production, economic growth, and energy consumption in Ghana," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 6(4), pages 231-241.
    6. Nezahat DOGAN, 2016. "Agriculture and Environmental Kuznets Curves in the case of Turkey: evidence from the ARDL and bounds test," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(12), pages 566-574.
    7. Mary O. Agboola & Festus V. Bekun, 2019. "Does Agricultural Value Added Induce Environmental Degradation? Empirical Evidence from an Agrarian Country," Working Papers of the African Governance and Development Institute. 19/040, African Governance and Development Institute..
    8. Smyth, Russell & Narayan, Paresh Kumar, 2015. "Applied econometrics and implications for energy economics research," Energy Economics, Elsevier, vol. 50(C), pages 351-358.
    9. Sbia, Rashid & Shahbaz, Muhammad & Hamdi, Helmi, 2014. "A contribution of foreign direct investment, clean energy, trade openness, carbon emissions and economic growth to energy demand in UAE," Economic Modelling, Elsevier, vol. 36(C), pages 191-197.
    10. Stock, James H & Watson, Mark W, 1993. "A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems," Econometrica, Econometric Society, vol. 61(4), pages 783-820, July.
    11. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    12. Ang, James B., 2009. "CO2 emissions, research and technology transfer in China," Ecological Economics, Elsevier, vol. 68(10), pages 2658-2665, August.
    13. Guangzhu Zhou & Hongping Li & Ilhan Ozturk & Sana Ullah, 2022. "Shocks in agricultural productivity and CO2 emissions: new environmental challenges for China in the green economy," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 5790-5806, December.
    14. Toda, Hiro Y. & Yamamoto, Taku, 1995. "Statistical inference in vector autoregressions with possibly integrated processes," Journal of Econometrics, Elsevier, vol. 66(1-2), pages 225-250.
    15. Maralgua Och, 2017. "Empirical Investigation of the Environmental Kuznets Curve Hypothesis for Nitrous Oxide Emissions for Mongolia," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 117-128.
    16. 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.
    17. Managi, Shunsuke & Hibiki, Akira & Tsurumi, Tetsuya, 2009. "Does trade openness improve environmental quality?," Journal of Environmental Economics and Management, Elsevier, vol. 58(3), pages 346-363, November.
    18. Silvia Coderoni & Roberto Esposti, 2014. "Is There a Long-Term Relationship Between Agricultural GHG Emissions and Productivity Growth? A Dynamic Panel Data Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(2), pages 273-302, June.
    19. Qazi Hye, 2012. "Long term effect of trade openness on economic growth in case of Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(4), pages 1137-1149, June.
    20. Le, Thai-Ha & Chang, Youngho & Park, Donghyun, 2016. "Trade openness and environmental quality: International evidence," Energy Policy, Elsevier, vol. 92(C), pages 45-55.
    21. Benjamin J. DeAngelo, Francisco C. de la Chesnaye, Robert H. Beach, Allan Sommer and Brian C. Murray, 2006. "Methane and Nitrous Oxide Mitigation in Agriculture," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 89-108.
    22. Shahbaz, Muhammad & Nasreen, Samia & Abbas, Faisal & Anis, Omri, 2015. "Does foreign direct investment impede environmental quality in high-, middle-, and low-income countries?," Energy Economics, Elsevier, vol. 51(C), pages 275-287.
    23. Lili Guo & Yuting Song & Shuang Zhao & Mengqian Tang & Yangli Guo & Mengying Su & Houjian Li, 2022. "Dynamic Linkage between Aging, Mechanizations and Carbon Emissions from Agricultural Production," IJERPH, MDPI, vol. 19(10), pages 1-22, May.
    24. Inglesi-Lotz, Roula, 2018. "Decomposing the South African CO2 emissions within a BRICS countries context: Signalling potential energy rebound effects," Energy, Elsevier, vol. 147(C), pages 648-654.
    25. Geng, Aixin & Yang, Hongqiang & Chen, Jiaxin & Hong, Yinxing, 2017. "Review of carbon storage function of harvested wood products and the potential of wood substitution in greenhouse gas mitigation," Forest Policy and Economics, Elsevier, vol. 85(P1), pages 192-200.
    26. 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.
    27. Houssem Eddine Chebbi, 2010. "Long and Short–Run Linkages Between Economic Growth, Energy Consumption and CO2 Emissions in Tunisia," Middle East Development Journal, Taylor & Francis Journals, vol. 2(1), pages 139-158, January.
    28. B. Mapapu & Andrew Phiri, 2018. "Carbon Emissions and Economic Growth in South Africa: A Quantile Regresison Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 195-202.
    29. Mehmet Akif Destek & Esra Balli & Muge Manga, 2016. "The Relationship between CO2 Emission, Energy Consumption, Urbanization and Trade Openness for Selected CEECs," Research in World Economy, Research in World Economy, Sciedu Press, vol. 7(1), pages 52-58, June.
    30. Ozturk, Ilhan & Acaravci, Ali, 2013. "The long-run and causal analysis of energy, growth, openness and financial development on carbon emissions in Turkey," Energy Economics, Elsevier, vol. 36(C), pages 262-267.
    31. Robert W. R. Parker & Julia L. Blanchard & Caleb Gardner & Bridget S. Green & Klaas Hartmann & Peter H. Tyedmers & Reg A. Watson, 2018. "Fuel use and greenhouse gas emissions of world fisheries," Nature Climate Change, Nature, vol. 8(4), pages 333-337, April.
    32. Suvajit Banerjee & Muntasir Murshed, 2020. "Do emissions implied in net export validate the pollution haven conjecture? Analysis of G7 and BRICS countries," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 12(3), pages 297-319.
    33. Manuel A. Zambrano‐Monserrate & Mario Andres Fernandez, 2017. "An Environmental Kuznets Curve for N2O emissions in Germany: an ARDL approach," Natural Resources Forum, Blackwell Publishing, vol. 41(2), pages 119-127, May.
    34. Nasir, Muhammad & Ur Rehman, Faiz, 2011. "Environmental Kuznets Curve for carbon emissions in Pakistan: An empirical investigation," Energy Policy, Elsevier, vol. 39(3), pages 1857-1864, March.
    35. Nguyen Phuc Canh & Su Dinh Thanh & Christophe Schinckus & Jo Bensemann & Lai Trung Thanh, 2019. "Global Emissions: A New Contribution from the Shadow Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 320-337.
    36. Hbib Sekrafi & Asma Sghaier, 2018. "Examining the Relationship Between Corruption, Economic Growth, Environmental Degradation, and Energy Consumption: a Panel Analysis in MENA Region," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(3), pages 963-979, September.
    37. Shahbaz, Muhammad & Jalil, Abdul & Dube, Smile, 2010. "Environmental Kuznets curve (EKC): Times series evidence from Portugal," MPRA Paper 27443, University Library of Munich, Germany.
    38. Tanvir Ahmed & Bashir Ahmad, 2014. "Burning of Crop Residue and its Potential for Electricity Generation," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(3), pages 275-292.
    39. A. Baccini & S. J. Goetz & W. S. Walker & N. T. Laporte & M. Sun & D. Sulla-Menashe & J. Hackler & P. S. A. Beck & R. Dubayah & M. A. Friedl & S. Samanta & R. A. Houghton, 2012. "Estimated carbon dioxide emissions from tropical deforestation improved by carbon-density maps," Nature Climate Change, Nature, vol. 2(3), pages 182-185, March.
    40. Hannes Weber & Jennifer Dabbs Sciubba, 2019. "The Effect of Population Growth on the Environment: Evidence from European Regions," European Journal of Population, Springer;European Association for Population Studies, vol. 35(2), pages 379-402, May.
    41. Apergis, Nicholas & Payne, James E. & Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth," Ecological Economics, Elsevier, vol. 69(11), pages 2255-2260, September.
    42. Rüter, Sebastian & Werner, Frank & Forsell, Nicklas & Prins, Christopher & Vial, Estelle & Levet, Anne-Laure, 2016. "ClimWood2030 - Climate benefits of material substitution by forest biomass and harvested wood products: Perspective 2030. Final report," Thünen Reports 42, Johann Heinrich von Thünen Institute, Federal Research Institute for Rural Areas, Forestry and Fisheries.
    Full references (including those not matched with items on IDEAS)

    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. Nasreen, Samia & Anwar, Sofia & Ozturk, Ilhan, 2017. "Financial stability, energy consumption and environmental quality: Evidence from South Asian economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1105-1122.
    2. Ben Jebli, Mehdi & Ben Youssef, Slim, 2015. "The environmental Kuznets curve, economic growth, renewable and non-renewable energy, and trade in Tunisia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 173-185.
    3. Shahbaz, Muhammad & Hye, Qazi Muhammad Adnan & Tiwari, Aviral Kumar & Leitão, Nuno Carlos, 2013. "Economic growth, energy consumption, financial development, international trade and CO2 emissions in Indonesia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 109-121.
    4. Xiaoxia Shi & Haiyun Liu & Joshua Sunday Riti, 2019. "The role of energy mix and financial development in greenhouse gas (GHG) emissions’ reduction: evidence from ten leading CO2 emitting countries," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(3), pages 695-729, October.
    5. Shahzad, Syed Jawad Hussain & Kumar, Ronald Ravinesh & Zakaria, Muhammad & Hurr, Maryam, 2017. "Carbon emission, energy consumption, trade openness and financial development in Pakistan: A revisit," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 185-192.
    6. 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.
    7. Hu, Hui & Xie, Nan & Fang, Debin & Zhang, Xiaoling, 2018. "The role of renewable energy consumption and commercial services trade in carbon dioxide reduction: Evidence from 25 developing countries," Applied Energy, Elsevier, vol. 211(C), pages 1229-1244.
    8. Raghutla, Chandrashekar & Shahbaz, Muhammad & Chittedi, Krishna Reddy & Jiao, Zhilun, 2021. "Financing clean energy projects: New empirical evidence from major investment countries," Renewable Energy, Elsevier, vol. 169(C), pages 231-241.
    9. Shahbaz, Muhammad & Nasir, Muhammad Ali & Roubaud, David, 2018. "Environmental degradation in France: The effects of FDI, financial development, and energy innovations," Energy Economics, Elsevier, vol. 74(C), pages 843-857.
    10. Boukhelkhal, Abdelaziz & Bengana, Ismail, 2018. "Cointegration and causality among electricity consumption, economic, climatic and environmental factors: Evidence from North -Africa region," Energy, Elsevier, vol. 163(C), pages 1193-1206.
    11. 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.
    12. Omri, Anis & Daly, Saida & Rault, Christophe & Chaibi, Anissa, 2015. "Financial development, environmental quality, trade and economic growth: What causes what in MENA countries," Energy Economics, Elsevier, vol. 48(C), pages 242-252.
    13. Manga, Muge & Cengiz, Orhan & Destek, Mehmet Akif, 2022. "Is export quality a viable option for sustainable development paths of Asian countries?," MPRA Paper 117552, University Library of Munich, Germany.
    14. Awad, Atif, 2019. "Does economic integration damage or benefit the environment? Africa's experience," Energy Policy, Elsevier, vol. 132(C), pages 991-999.
    15. Shahbaz, Muhammad & Shahzad, Syed Jawad Hussain & Ahmad, Nawaz & Alam, Shaista, 2016. "Financial development and environmental quality: The way forward," Energy Policy, Elsevier, vol. 98(C), pages 353-364.
    16. Yue-Jun Zhang & Zhao Liu & Huan Zhang & Tai-De Tan, 2014. "The impact of economic growth, industrial structure and urbanization on carbon emission intensity in China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 73(2), pages 579-595, September.
    17. Ali, Wajahat & Abdullah, Azrai & Azam, Muhammad, 2017. "Re-visiting the environmental Kuznets curve hypothesis for Malaysia: Fresh evidence from ARDL bounds testing approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 990-1000.
    18. Sylvanus Kwaku Afesorgbor & Binyam Afewerk Demena, 2022. "Trade Openness and Environmental Emissions: Evidence from a Meta-Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(2), pages 287-321, February.
    19. Dogan, Eyup & Seker, Fahri, 2016. "Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy," Renewable Energy, Elsevier, vol. 94(C), pages 429-439.
    20. Muhammad, Shahbaz, 2012. "Multivariate granger causality between CO2 Emissions, energy intensity, financial development and economic growth: evidence from Portugal," MPRA Paper 37774, University Library of Munich, Germany, revised 31 Mar 2012.

    More about this item

    Keywords

    Agricultural production; environmental degradation; environmental Kuznets curve hypothesis; autoregressive distributive lag; Granger causality; India;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    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:sae:emeeco:v:16:y:2024:i:3:p:340-370. 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: SAGE Publications (email available below). General contact details of provider: http://www.emergingmarketsforum.org/ .

    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.