Role of environmental degradation and energy use for agricultural economic growth: Sustainable implications based on ARDL estimation

Abstract

The purpose of this study is to explain factors driving the agricultural economic growth (AEG) in China by evaluating effects of oil consumption (OILC), electricity consumption (ELC), gas consumption (GASC), CO2 emission, and agricultural export (AGExp) on AEG of China. The time series data of 35 years for China has been collected over the time from 1985 to 2019. On time series data, “auto regressive distributed lag” (ARDL) modeling has been performed to assess short-term and long-term relationships of determinants of AEG with agricultural economic growth. Results of this study have revealed that CO2 emissions, AGExp, OILC, and GASC have significant effects on AEG in China in long run but ELC does not have any significant effects on AEG in China in long run. Results of short-term effects revealed that OILC and GASC have significant effects on AEG in China in short run but ELC, CO2, and AGExp do not have any significant effects on AEG in China in short run. The current research draws useful implications for policymakers of China by recommending them how they can enhance AEG and boost their agricultural sector by encouraging energy consumptions and export of agricultural products in the sector. Existing literature demonstrates the lack of empirical evidence, harmonized results, and sufficient insights about OILC-AEG, ELC-AEG, and GASC-AEG nexus so, this paper shortens this gap in the literature by explaining these factors of AEG of China the first time through ARDL modeling.