The Impacts of Climate Change, Carbon Dioxide Emissions (CO2) and Renewable Energy Consumption on Agricultural Economic Growth in South Africa: ARDL Approach

Abstract

One of the most affected economies by climate change is the agricultural sector. Climate change measured by temperature and precipitation has an impact on agricultural output, which in turn affects the economy of the sector. It is anticipated that using renewable energy will lower carbon emissions that are directly related to climate change. The main objective of this study was to evaluate the impact of carbon dioxide emissions (CO2), renewable energy usage, and climate change on South Africa’s agricultural sector from 1972 to 2021. The nexus was estimated using an Auto Regressive-Distributed Lag (ARDL) Bounds test econometric technique. In the short run, findings indicated that climate change reduces agricultural economic growth and carbon dioxide emissions increase as agricultural economic growth increases. The use of renewable energy was insignificant in the short and long run. Carbon dioxide emissions granger causes temperature and renewable energy unilateral. An ARDL analysis was performed to evaluate the short and long-term relationship between agricultural economic growth, climate change, carbon dioxide emissions and renew able energy usage. The study adds new knowledge on the effects of climate change and carbon emissions on the agricultural economy alongside the use of renewable energy which can be used to inform economic policy on climate change and the energy nexus in the agricultural sector. Study findings point to the prioritization of biomass commercialization, rural and commercial farming sector bioenergy regulations and socioeconomic imperatives research is crucial in order to promote inclusive participation in the production of renewable energy.