The role of renewable energy and agriculture in reducing CO2 emissions: evidence for North Africa countries

Mehdi Ben Jebli () and Slim Ben Youssef

MPRA Paper from University Library of Munich, Germany

Abstract: This paper uses panel cointegration techniques and Granger causality tests to investigate the dynamic causal links between per capita renewable energy consumption, agricultural value added (AVA), carbon dioxide (CO2) emissions, and real gross domestic product (GDP) for a panel of five North Africa countries spanning the period 1980-2011. In the short-run, the Granger causality tests show the existence of a bidirectional causality between CO2 emissions and agriculture, a unidirectional causality running from agriculture to GDP, a unidirectional causality running from GDP to renewable energy consumption, and a unidirectional causality running from renewable energy consumption to agriculture. In the long-run, there is bidirectional causality between agriculture and CO2 emissions, a unidirectional causality running from renewable energy to both agriculture and emissions, and a unidirectional causality running from output to both agriculture and emissions. Long-run parameter estimates show that an increase in GDP and in renewable energy consumption increase CO2 emissions, whereas an increase in agricultural value added reduces CO2 emissions. As policy recommendation, North African authorities should encourage renewable energy consumption, and especially clean renewable energy such as solar or wind, as this improves agricultural production and help to combat global warming.

Keywords: Renewable energy; Agriculture; CO2 emissions; Panel cointegration; North Africa. (search for similar items in EconPapers)
JEL-codes: C33 Q15 Q42 Q54 (search for similar items in EconPapers)
Date: 2015-12-14
New Economics Papers: this item is included in nep-agr, nep-ara, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:68477

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