Investigating the agriculture-induced environmental Kuznets curve hypothesis in South Asian economies

Abstract

PurposeThe main purpose of this study is to investigate the agriculture-induced environmental Kuznets curve (EKC) hypothesis in South Asian economies (SAE).Design/methodology/approachThis study employs econometric techniques, including Westerlund cointegration tests, cross-sectional augmented distributive lag model (CS-ARDL) and Dumitrescu and Hurlin (DH) causality tests to investigate the relationship between renewable and non-renewable energy consumption, agriculture, economic growth, financial development and carbon emissions in SAE from 1990 to 2019.FindingsThe CS-ARDL test outcome supports the presence of the agriculture-induced EKC hypothesis in SAE. Additionally, through the application of the DH causality test, the study confirms a unidirectional causality running from renewable energy consumption (REC), fossil fuel consumption (FFC), economic growth (GDP) and squared economic growth (GDP2) to carbon dioxide (CO2) emissions.Research limitations/implicationsThis study proposes that future research should extend comparisons to worldwide intergovernmental bodies, use advanced econometric methodologies for accurate estimates, and investigate incorporating the service or primary sector into the EKC. Such multidimensional studies can inform various methods for mitigating global climate change and ensuring ecological sustainability.Originality/valueEnvironmental degradation has been extensively studied in different regions and countries, but SAE face significant constraints in addressing this issue, and comprehensive studies in this area are scarce. This research is pioneering as it is the first study to investigate the applicability of the agriculture-induced EKC in the South Asian region. By filling this gap in the current literature, the study provides valuable insights into major SAE and their environmental challenges.