The nexuses between carbon emissions, agriculture production efficiency, research and development, and government effectiveness: evidence from major agriculture-producing countries

Yasmeen, Rizwana; Tao, Rui; Shah, Wasi Ul Hassan; Padda, Ihtsham Ul Haq; Tang, Caihong

The nexuses between carbon emissions, agriculture production efficiency, research and development, and government effectiveness: evidence from major agriculture-producing countries

2022

Yasmeen, Rizwana | Tao, Rui | Shah, Wasi Ul Hassan | Padda, Ihtsham Ul Haq | Tang, Caihong

Agriculture production efficiency and carbon emissions have become the challenge for the sustainable world. Therefore, this study explores the relationships between agriculture production and carbon emissions in major (seventeen) agriculture-producing countries over the time period of 1996–2018. Data envelopment analysis is applied to estimate the efficiency of agriculture sector production. The results suggested that the USA, Russia, Korea, Japan, and Italy were efficient agriculture production. Among BRICS countries, China (0.183), India (0.378), and Brazil (0.382) are far off to Russia in Agriculture production efficiency. Growth of research and development investment by 1% increases agriculture production efficiency by 0.0773 (full panel), 0.119 (developing), and 0.0245(developed), respectively. Carbon emissions are also significantly decreased by research and development investment. However, the effectiveness of the government on carbon emissions can be both positive and negative in developed and developing countries’ cases. Nevertheless, both developed and developing governments are concerned about increasing agriculture production efficiency. The shape validity of the environmental Kuznets curve is also varied between the developed and developing groups. From the policy perspective, it is suggested that the government should reform its policies to avoid carbon activities and enhance the agricultural sector on a priority basis to increase the efficiency of current raw resources, generate jobs, and reap a variety of other advantages.

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