Evaluating Environmental Sustainability: The Role of Agriculture and Renewable Energy in South Korea

Abstract

This study investigates the impacts of agriculture and renewable energy consumption on CO2 emissions in South Korea from 1980 to 2023, highlighting both challenges and opportunities for environmental sustainability. Utilizing bootstrap ARDL, FMOLS, and CCR methodologies, the analysis reveals that traditional agricultural practices significantly increase CO2 emissions, underscoring the urgent need for sustainable agricultural reforms. Conversely, renewable energy consumption effectively reduces CO2 emissions, thereby supporting the nation’s transition towards sustainable energy sources. Additionally, control variables such as industrial activity, urbanization, energy prices, and government environmental policies exhibit significant effects on CO2 emissions. Specifically, industrial activity and urbanization contribute to increased emissions, whereas higher energy prices and stringent environmental policies are associated with reduced emissions. These findings highlight the necessity for targeted agricultural and energy sector reforms to achieve a balance between economic growth and environmental preservation. Robustness tests confirm the stability of these relationships, providing a reliable foundation for policymakers to develop effective strategies for a sustainable future in South Korea.