Examining the roles of renewable energy consumption and agriculture on CO(2) emission in lucky-seven countries

Environmental degradation has become an important global issue due to the extraordinary increase in greenhouse gas emissions in recent years. Therefore, identifying the main determinants of environmental degradation is one of the primary agenda items of researchers and policymakers. In the literature, many social, economic, and sectorial factors related to the main determinants of CO(2) emissions have been studied. Although these studies provide very important information about the causes of CO(2) emissions and environmental degradation, some deficiencies remain in the related literature. The agricultural sector activities, which are an important sector at a global level and have significant potential impacts on CO(2) emissions, have not been adequately studied. In order to fill this gap, the effects of agriculture and renewable energy on CO(2) emissions were examined for lucky-seven countries during the period 1995–2014. The results of panel cointegration reveal the presence of long-run nexus among the variables. While the findings indicate that agriculture increases CO(2) emissions, renewable energy is a very important catalyst in reducing CO(2) emissions in lucky-seven countries. We also found that economic growth and energy consumption enhance CO(2) emissions and trade openness decreases. Panel VECM results indicate that variables are the causes of CO(2) emission in the long run. Also, we find that economic growth is the cause of CO(2) emissions in the short run.