Dynamic relationship among agriculture-renewable energy-forestry and carbon dioxide (CO2) emissions: empirical evidence from GUAM countries

Abstract

Nowadays with the climate change the environmental degradation has became the crucial issue in the World. This study empirically investigates the impact of agriculture value-added, forest area, and renewable energy on CO2 emissions in GUAM union countries from 1996 to 2019. The independent variables in this study are agriculture value-added, forest, renewable energy and the dependent variable is CO2 emissions. The statistical methods as the Panel unit root test, Pedroni and Kao panel co-integration test and OLS, FMOLS, and DOLS long-run tests were employed for the empirical part of the paper. The independent variables in this study are agriculture value-added, forest, renewable energy and the dependent variable is CO2 emissions. The statistical methods as the Panel unit root test, Pedroni and Kao panel co-integration test and OLS, FMOLS, and DOLS long-run tests were employed for the empirical part of the paper. The outputs of the Pedroni and Kao panel co-integration tests confirmed that there is a long-term relationship between the analyzed series. The findings of the OLS, FMOLS, and DOLS tests indicate a negative relationship between the analyzed variables. According to the the results of empirical analyzes it was confirmed that there is a statistically significant and negative relationship between agriculture value-added, forest, renewable energy and CO2 emissions which means that an increase of agricultural production, forest areas and renewable energy consumption decreased the CO2 emissions in GUAM countries for the time span 1996-2019.

Keywords

• guam
• agriculture
• renewable energy
• forest
• sustainable
• panel unit root test
• pedroni and kao panel cointegration test
• ols
• fmols
• dols