Nexus between Economy, Agriculture, Population, Renewable Energy and CO2 Emissions: Evidence from Asia-Pacific Countries

Abstract

This study uses panel co-integration methods and Granger causality examines to scrutinize the dynamic causal relationship between carbon dioxide (CO2) emissions, gross domestic product (GDP), renewable energy (RE), agriculture value added (AVA) and population for the thirteen developed and developing Asia Pacific countries (APCs) covering the period 2005-2017. The results evaluate in two ways: in the short-run, Granger causality test (GCT) is operating from AVA to GDP and express bidirectional causation among GDP and agriculture. In the distant future, there is causality from RE and Population to CO2emissions. The short-run causality is important due to the agriculture sector which causes in boosting GDP while economic development, population and clean energy (including waste and combustible) raise CO2 emissions causes in the reduction of production and services. The research finds out that reduction in AVA, GDP increase, uncontrolled population and lack of attention on clean energy are interrelated in creating emissions. Policy recommendation insights that Asian Pacific establishments should control the population, less use of fossil fuel, encourage clean energy technologies such as solar and wind to fight with global warming.