Renewable energy consumption and its impacts on agriculturalization under climate neutrality targets

Abstract

Improvements in energy efficiency, cost savings, and environmental advantages are possible effects of adopting and using renewable energy in agriculture. However, whether renewable energy consumption (REC) has any impact on agricultural productivity is a research question that this analysis tries to answer. Previous research neglected to consider the influence of REC on agriculture. The primary objective of the analysis is to analyze the role of REC in sustainable agriculture in Asia, America, Africa, and Europe with the help latest econometric technique of the CS-ARDL model. The findings show that REC and technological capital (TC) improve long-run agriculturalization in the full sample, Asia, Africa, America, and Europe. The results infer that a 1% increase in REC causes agriculturalization to boost by 1.512% in the full sample, 1.254% in Asia, 1.654% in Africa, 0.897% in America, and 1.325% in Europe. In addition, financial development favorably influences long-run agricultural productivity in the full sample, Africa, America, and Europe, and population growth only impacts agricultural productivity in the long run. In contrast, the long-run agricultural productivity is negatively impacted by environmental pollution globally and in Asia. On the other hand, in the short run, TC positively impacts agricultural productivity in all samples, while other short-run estimates are insignificant in most samples. These findings suggest that renewable energy utilization may lead to more effective and resilient agricultural systems by supplying clean and dependable electricity, lowering greenhouse gas emissions, and supporting sustainable resource management.