Exploring the Impact of the Greening of the Agri-Food Sector on Economic Growth: An Empirical Approach in the BVAR Framework for the EU

Abstract

The Greening in agro—food sector has become within the last decade a high priority issue given the 17 Sustainable targets set by OECD. More specifically, the Sustainable Development Goals (SDGs) by 2030, intend to promote using environmental resources in close correlation with measures to reduce non-environmental human pressure on the planet as well as in agro-food sector. The present work studies the greening of agro-food sector as synopsized in emissions per capita by agro-food sector for the EU and its relation to economic growth per capita with the assistance of a BVAR framework. Our findings do not validate success in greening of agro—food sector since the emissions reduction is not accompanied by economic growth a result that rejects the hypothesis of eco efficiency. Future research could involve the construction of an index that should incorporate more variables that will reflect more accurately the greening efforts in agro—food sector.

Keywords

• ecoefficiency
• farm to fork strategy
• BVAR
• impulse response
• agro-food industry