Exploring the Dynamic Relationships between Agricultural Production and Environmental Pollution: Evidence from a GMM-SYS Model in the Three Seas Initiative (3SI)

Błażej Suproń () and Janusz Myszczyszyn
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Janusz Myszczyszyn: Department of Economics, Finance and Accounting, Faculty of Economics, West Pomeranian University of Technology, 70-310 Szczecin, Poland

Sustainability, 2024, vol. 16, issue 9, 1-15

Abstract: The Three Seas Initiative (3SI) is still an under-researched area and is particularly important due to historical circumstances and economic backwardness. A study was carried out to assess the impact of renewable energy and production made by the agricultural sector on CO 2 emissions in 3SI countries between 2008 and 2020. The study used panel data analysis based on the two-step system’s generalized method of moments (GMM) and the Dumitrescu–Hurlin panel causality test. The results show that a 1% increase in the value added generated by agriculture increased CO 2 emissions in the countries studied by 0.11%. In contrast, a 1% increase in GDP led to a 0.29% increase in CO 2 emissions. Conversely, when renewable energy consumption increased by 1%, CO 2 emissions fell by 0.25% in the countries studied. One way to reduce CO 2 emissions from agricultural production in the short term is to increase the share of renewables, which incidentally is in line with EU action.

Keywords: agricultural production; agriculture; GMM system; renewable energy; Three Seas Initiative (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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