Agricultural Environmental Kuznets Curve: A Panel Data Approach

Abstract

This study employs a panel regression model to empirically examine the association between environmental degradation and agricultural performance across a sample of 150 nations over the period of 2000-2020. Agricultural methane emissions serve as a metric for quantifying environmental damage. The measurement of agricultural performance is represented by two variables, namely, the net value added for agriculture and the livestock production index. While agricultural production is a significant source of methane emissions, it is noteworthy that the majority of existing literature mostly focuses on carbon dioxide (CO2) emissions. The primary contribution of this study lies in the utilization of methane emissions as a surrogate measure for assessing the extent of environmental degradation. The findings substantiate the credibility of the agricultural Environmental Kuznets Curve (EKC), indicating a curvilinear association between agricultural net value added and methane emissions, characterised by an inverted U shape. In addition, it is worth noting that animal production exerts a substantial adverse influence on methane emissions. Hence, the development in net value-added in the agricultural sector might lead to a reduction in environmental degradation. Therefore, the results indicate that the use of agricultural production techniques and agricultural technology approaches is recommended in order to promote a more environmentally sustainable global context.