Testing the agriculture-induced Environmental Kuznets Curve with moderation effect of human capital and renewable energy: insights from BRICS economies.

Abstract

The surge in economic growth and increased agricultural output can augment societal well-being whilst proliferating environmental stressors. So, the study tests the validity of the "agriculture-induced Environmental Kuznets Curve hypothesis" (AEKC) by assessing the varied environmental proxies that have yet to be accounted for earlier in the case of BRICS economies. Furthermore, most studies have utilised "first-generation econometric approaches" as the "cross-sectional dependency" has not been deemed in estimation. On account of this, the research employed "second-generation CIPS and CADF unit root test", "Westerlund cointegration test", "fully modified ordinary least square" (FMOLS) and "dynamic ordinary least square" (DOLS) to test the validity of AEKC in "BRICS countries" for 30years. A positive association between agriculture and "ecological footprint" has been found which evidences the presence of an "inverted U-shaped AEKC" in BRICS nations. Another finding shows that the favourable impact of agriculture towards climate change can be moderated by illustrating the interaction effect of "human capital" and "renewable energy" with "agriculture". Lastly, the investigation brings forth the policy repercussions and acumens for the BRICS governments and policymakers in halting climate change by using renewable energy in agriculture and building human capital.