Is agricultural development good for carbon mitigation in India? Evidence from the asymmetric NARDL model

Abstract

PurposeThe main objective of the present study is to figure out the effect of agricultural development on environmental pollution in the Indian context over the period 1970 to 2018. The study also tests the applicability of pollution haven hypothesis.Design/methodology/approachTo begin with, the authors test the stationarity of the variables by using the DF-GLS and KPSS tests. To examine the relationship between agricultural development and carbon emissions, the study applies nonlinear autoregressive distributed lag cointegration test developed by Shin et al. (2014). The study also applies Wald test to test the asymmetry between agriculture and environmental pollution.FindingsThe findings of this study indicate that agricultural development in India is good for carbon mitigation in the long run whereas energy consumption degrades the environment. The findings document the existence of an asymmetric association between agricultural development and environmental pollution. Furthermore, the results did not find any presence of pollution haven hypothesis for India.Originality/valueThis is the only empirical work that assesses the contribution of agricultural sector to carbon mitigation in the Indian context. The novelty of the study is further ensured by the very nature that it is the first study that examines the effect of agricultural sector on environment in an asymmetric configuration.