Impact of Economic Growth, Agriculture, and Primary Energy Consumption on Carbon Dioxide Emissions in the Czech Republic

Abstract

One of the primary difficulties we have recently is environmental degradation. The deterioration of the environment was visible in the rise in carbon dioxide emissions, which has a detrimental impact on various life matters. A variety of factors caused this growth. Inappropriate human behaviors caused the majority of them. This study aimed to ascertain how energy consumption and economic growth with its components in the Czech Republic, affected CO2 emissions. The relationship between CO2 emissions, economic growth, agriculture, and energy consumption was studied using econometric analysis, specifically the Johansen, Vector Error Correction (VEC) Model, and granger causality. The findings revealed that all variables are cointegrated. Economic growth, agricultural, and energy consumption output are all positively correlated with CO2 emissions. There is a unidirectional Granger Causality between economic growth, and Agriculture towards carbon dioxide emissions. A unidirectional Granger Causality agriculture towards economic growth, and energy consumption. In addition, there is no Granger Causality between energy consumption and CO2 emissions, and economic growth. This is the first study to use the most recent data to empirically evaluate the environmental impact of economic growth and energy use in the Czech Republic. This study includes pertinent advice for reducing emission ns and supporting the environment by increasing renewable energy sources and adhering to the Czech Ministry of Environment’s strategy.

Keywords

• economic growth
• energy
• carbon dioxide
• Johansen
• agriculture
• Czech Republic