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Analysis of the Nexus of CO 2 Emissions, Economic Growth, Land under Cereal Crops and Agriculture Value-Added in Pakistan Using an ARDL Approach

Sajjad Ali (), Liu Ying (), Tariq Shah (), Azam Tariq (), Abbas Ali Chandio () and Ihsan Ali ()
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Sajjad Ali: College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China
Liu Ying: College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China
Tariq Shah: Department of Economics & Development Studies, University of Swat, Khyber Pakhtunkhwa 19130, Pakistan
Azam Tariq: College of Humanities and Social Sciences, Huazhong Agricultural University, Wuhan 430070, China
Abbas Ali Chandio: College of Economics, Sichuan Agricultural University, Chengdu 625014, China
Ihsan Ali: College of Plant Science and Technology, Huazhong Agricultural University, Wuhan 430070, China

Energies, 2019, vol. 12, issue 23, 1-18

Abstract: The present study attempts to explore the correlation between carbon dioxide emissions (CO 2 e), gross domestic product (GDP), land under cereal crops (LCC) and agriculture value-added (AVA) in Pakistan. The study exploits time-series data from 1961 to 2014 and further applies descriptive statistical analysis, unit root test, Johansen co-integration test, autoregressive distributed lag (ARDL) model and pairwise Granger causality test. The study employes augmented Dickey–Fuller (ADF) and Phillips–Perron (PP) tests to check the stationarity of the variables. The results of the analysis reveal that there is both short- and long-run association between agricultural production, economic growth and carbon dioxide emissions in the country. The long-run results estimate that there is a positive and insignificant association between carbon dioxide emissions, land under cereal crops, and agriculture value-added. The results of the short-run analysis point out that there is a negative and statistically insignificant association between carbon dioxide emissions and gross domestic product. It is very important for the Government of Pakistan’s policymakers to build up agricultural policies, strategies and planning in order to reduce carbon dioxide emissions. Consequently, the country should promote environmentally friendly agricultural practices in order to strengthen its efforts to achieve sustainable agriculture.

Keywords: carbon dioxide emissions; cereal crops; gross domestic product; ARDL model; granger causality; Pakistan (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
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