Exploring the Dynamic Relationships between Agricultural Production and Environmental Pollution: Evidence from a GMM-SYS Model in the Three Seas Initiative (3SI)

Author:

Suproń Błażej1ORCID,Myszczyszyn Janusz1ORCID

Affiliation:

1. Department of Economics, Finance and Accounting, Faculty of Economics, West Pomeranian University of Technology, 70-310 Szczecin, Poland

Abstract

The Three Seas Initiative (3SI) is still an under-researched area and is particularly important due to historical circumstances and economic backwardness. A study was carried out to assess the impact of renewable energy and production made by the agricultural sector on CO2 emissions in 3SI countries between 2008 and 2020. The study used panel data analysis based on the two-step system’s generalized method of moments (GMM) and the Dumitrescu–Hurlin panel causality test. The results show that a 1% increase in the value added generated by agriculture increased CO2 emissions in the countries studied by 0.11%. In contrast, a 1% increase in GDP led to a 0.29% increase in CO2 emissions. Conversely, when renewable energy consumption increased by 1%, CO2 emissions fell by 0.25% in the countries studied. One way to reduce CO2 emissions from agricultural production in the short term is to increase the share of renewables, which incidentally is in line with EU action.

Funder

Faculty of Economics of West Pomeranian University of Technology in Szczecin, Poland

Green Lab. Research and Innovations

Publisher

MDPI AG

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