Environmental efficiency in the agricultural sector of Latin America and the Caribbean 1990–2015: Are greenhouse gas emissions reducing while agricultural production is increasing?

Abstract

The paper explores the relationship between production and greenhouse gas (GHG) emissions in the agricultural sector of Latin America and the Caribbean (LAC) between 1990 and 2015. By appraising how GHG emissions have changed with respect to agricultural production (elasticity), we are able to classify countries into six decoupling states. While the decoupling elasticity provides information for assessing the evolution within countries, we introduce a performance ratio for country comparison by calculating GHG emissions over agricultural production for 2015 and using the global distribution as benchmark. The information from both measurements serves to identify various country and sub regional situations. The findings illustrate that countries with performance ratios in the top 25% and under the best-case elasticity scenario (of strong decoupling) are not necessarily the same as the ones usually identified under factor productivity analyses, suggesting that environment-specific policy incentives and tools play a key role in enhancing sustainable agricultural production. Another major finding is that very few countries in the region (and worldwide) are able to offset agriculture emissions with land use-related carbon sequestration practices. Lastly, the evidence on small Caribbean island-states reporting the worst-case elasticity scenario (of strong negative decoupling) and performance ratios close to the world median, further supports the need for development plans related to climate change mitigation and adaptation in this sub region.