Energy consumption, agriculture, forestation and CO2 emission nexus: An application to OECD countries

Saroja Selvanathan; Maneka Savithri Jayasinghe; Eliyathamby A. Selvanathan; Syed Ali Abbas; Md Sayed Iftekhar

doi:10.1080/00036846.2022.2128296

Energy consumption, agriculture, forestation and CO₂ emission nexus: An application to OECD countries

Saroja Selvanathan, Maneka Savithri Jayasinghe, Eliyathamby A. Selvanathan, Syed Ali Abbas, Md Sayed Iftekhar

Research output: Contribution to journal › Article › peer-review

17 Citations (Scopus)

Abstract

The Environmental Kuznets Curve (EKC) hypothesis has been used to explain the relationship between environmental degradation and economic condition. This study formulates an augmented EKC framework to incorporate the effect of agriculture, forestation and energy consumption on CO₂ emission and estimates the model using the data from 24 OECD countries between 1990 and 2018. The study utilizes individual-country analysis and panel dynamic analysis for the empirical investigation. The results show a positive relationship between CO₂ emission and fossil fuel use–a 1% increase in fossil fuel consumption will increase CO₂ emission by 0.76%, and a negative relationship with renewable energy–a 1% increase in renewable energy consumption will reduce CO₂ emission by 0.14%. The impact of forest cover and agricultural production on CO₂ emission is mixed at the single-country level. The panel fixed-effect results reveal that a 1% increase in agricultural production and forest cover leads to a 0.04% and 0.63% increase in CO₂ emission, respectively. There is also strong evidence supporting the presence of the EKC hypothesis. The global CO₂ emission reduction strategies, such as carbon taxes and emission trading schemes, must acknowledge and incorporate the interplay among -key macro-level variables revealed in this study to enhance their effectiveness.

Original language	English
Pages (from-to)	4359 - 4376
Number of pages	19
Journal	Applied Economics
Volume	55
Issue number	37
Early online date	Oct 2022
DOIs	https://doi.org/10.1080/00036846.2022.2128296
Publication status	Published - 2023

Bibliographical note

Funding Information:
The authors wish to acknowledge the funding support from the Environmental and Resource Management Cluster and the Sustainable Energy Policy Cluster in the Accounting, Finance and Economics Department at Griffith University. The authors also gratefully acknowledge the funds received under the COVID-19 Supplementary Funding Pool Scheme (CSFPS) from Charles Darwin University to undertake this research. The authors would like to thank Ms. Tanya Parker for her editorial assistance.

Publisher Copyright:
© 2022 Informa UK Limited, trading as Taylor & Francis Group.

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10.1080/00036846.2022.2128296

Cite this

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title = "Energy consumption, agriculture, forestation and CO2 emission nexus: An application to OECD countries",

abstract = "The Environmental Kuznets Curve (EKC) hypothesis has been used to explain the relationship between environmental degradation and economic condition. This study formulates an augmented EKC framework to incorporate the effect of agriculture, forestation and energy consumption on CO2 emission and estimates the model using the data from 24 OECD countries between 1990 and 2018. The study utilizes individual-country analysis and panel dynamic analysis for the empirical investigation. The results show a positive relationship between CO2 emission and fossil fuel use–a 1% increase in fossil fuel consumption will increase CO2 emission by 0.76%, and a negative relationship with renewable energy–a 1% increase in renewable energy consumption will reduce CO2 emission by 0.14%. The impact of forest cover and agricultural production on CO2 emission is mixed at the single-country level. The panel fixed-effect results reveal that a 1% increase in agricultural production and forest cover leads to a 0.04% and 0.63% increase in CO2 emission, respectively. There is also strong evidence supporting the presence of the EKC hypothesis. The global CO2 emission reduction strategies, such as carbon taxes and emission trading schemes, must acknowledge and incorporate the interplay among -key macro-level variables revealed in this study to enhance their effectiveness.",

keywords = "Agriculture, energy, environmental kuznets curve framework, forest cover, OECD countries",

author = "Saroja Selvanathan and Jayasinghe, {Maneka Savithri} and Selvanathan, {Eliyathamby A.} and Abbas, {Syed Ali} and Iftekhar, {Md Sayed}",

note = "Funding Information: The authors wish to acknowledge the funding support from the Environmental and Resource Management Cluster and the Sustainable Energy Policy Cluster in the Accounting, Finance and Economics Department at Griffith University. The authors also gratefully acknowledge the funds received under the COVID-19 Supplementary Funding Pool Scheme (CSFPS) from Charles Darwin University to undertake this research. The authors would like to thank Ms. Tanya Parker for her editorial assistance. Publisher Copyright: {\textcopyright} 2022 Informa UK Limited, trading as Taylor & Francis Group.",

year = "2023",

doi = "10.1080/00036846.2022.2128296",

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T2 - An application to OECD countries

AU - Selvanathan, Saroja

AU - Jayasinghe, Maneka Savithri

AU - Selvanathan, Eliyathamby A.

AU - Abbas, Syed Ali

AU - Iftekhar, Md Sayed

N1 - Funding Information: The authors wish to acknowledge the funding support from the Environmental and Resource Management Cluster and the Sustainable Energy Policy Cluster in the Accounting, Finance and Economics Department at Griffith University. The authors also gratefully acknowledge the funds received under the COVID-19 Supplementary Funding Pool Scheme (CSFPS) from Charles Darwin University to undertake this research. The authors would like to thank Ms. Tanya Parker for her editorial assistance. Publisher Copyright: © 2022 Informa UK Limited, trading as Taylor & Francis Group.

PY - 2023

Y1 - 2023

N2 - The Environmental Kuznets Curve (EKC) hypothesis has been used to explain the relationship between environmental degradation and economic condition. This study formulates an augmented EKC framework to incorporate the effect of agriculture, forestation and energy consumption on CO2 emission and estimates the model using the data from 24 OECD countries between 1990 and 2018. The study utilizes individual-country analysis and panel dynamic analysis for the empirical investigation. The results show a positive relationship between CO2 emission and fossil fuel use–a 1% increase in fossil fuel consumption will increase CO2 emission by 0.76%, and a negative relationship with renewable energy–a 1% increase in renewable energy consumption will reduce CO2 emission by 0.14%. The impact of forest cover and agricultural production on CO2 emission is mixed at the single-country level. The panel fixed-effect results reveal that a 1% increase in agricultural production and forest cover leads to a 0.04% and 0.63% increase in CO2 emission, respectively. There is also strong evidence supporting the presence of the EKC hypothesis. The global CO2 emission reduction strategies, such as carbon taxes and emission trading schemes, must acknowledge and incorporate the interplay among -key macro-level variables revealed in this study to enhance their effectiveness.

AB - The Environmental Kuznets Curve (EKC) hypothesis has been used to explain the relationship between environmental degradation and economic condition. This study formulates an augmented EKC framework to incorporate the effect of agriculture, forestation and energy consumption on CO2 emission and estimates the model using the data from 24 OECD countries between 1990 and 2018. The study utilizes individual-country analysis and panel dynamic analysis for the empirical investigation. The results show a positive relationship between CO2 emission and fossil fuel use–a 1% increase in fossil fuel consumption will increase CO2 emission by 0.76%, and a negative relationship with renewable energy–a 1% increase in renewable energy consumption will reduce CO2 emission by 0.14%. The impact of forest cover and agricultural production on CO2 emission is mixed at the single-country level. The panel fixed-effect results reveal that a 1% increase in agricultural production and forest cover leads to a 0.04% and 0.63% increase in CO2 emission, respectively. There is also strong evidence supporting the presence of the EKC hypothesis. The global CO2 emission reduction strategies, such as carbon taxes and emission trading schemes, must acknowledge and incorporate the interplay among -key macro-level variables revealed in this study to enhance their effectiveness.

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