Agriculture, trade openness and emissions: an empirical analysis and policy options

Rafiq, Shuddhasattwa, Salim, Ruhul and Apergis, Nicholas 2015, Agriculture, trade openness and emissions: an empirical analysis and policy options, Australian journal of agricultural and resource economics, vol. 59, pp. 1-18, doi: 10.1111/1467-8489.12131.

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Title Agriculture, trade openness and emissions: an empirical analysis and policy options
Author(s) Rafiq, ShuddhasattwaORCID iD for Rafiq, Shuddhasattwa
Salim, Ruhul
Apergis, Nicholas
Journal name Australian journal of agricultural and resource economics
Volume number 59
Start page 1
End page 18
Total pages 18
Publisher Wiley
Place of publication London, Eng.
Publication date 2015
ISSN 1467-8489
Keyword(s) agricultural value added
carbon dioxide emissions
dynamic heterogeneous panels
nonlinear panel estimation under cross-sectional dependence
trade openness
Summary This article investigates the impact of sectoral production allocation, energy usage patterns and trade openness on pollutant emissions in a panel consisting of high-, medium- and low-income countries. Extended STIRPAT (Stochastic Impact by Regression on Population, Affluence and Technology) and EKC (Environmental Kuznets Curve) models are conducted to systematically identify these factors driving CO2 emissions in these countries during the period 1980–2010. To this end, the studyemploys three different heterogeneous, dynamic mean group-type linear panel modelsand one nonlinear panel data estimation procedure that allows for cross-sectionaldependence. While affluence, nonrenewable energy consumption and energy intensity variables are found to drive pollutant emissions in linear models, population is also found to be a significant driver in the nonlinear model. Both service sector and agricultural value-added levels play a significant role in reducing pollution levels, whereas industrialisation increases pollution levels. Although the linear model fails totrack any significant impact of trade openness, the nonlinear model finds trade liberalisation to significantly affect emission reduction levels. All of these results suggest that economic development, and especially industrialisation strategies and environmental policies, need to be coordinated to play a greater role in emission reduction due to trade liberalisation.
Language eng
DOI 10.1111/1467-8489.12131
Field of Research 140205 Environment and Resource Economics
Socio Economic Objective 910399 International Trade not elsewhere classified
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2015, Wiley
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