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Agriculture, forestry, and environmental sustainability: the role of institutions

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Abstract

Agriculture and forestry are two primary determinants of the environment, and strong institutions are crucial to moderate the outcomes of these sectors toward a sustainable environment. Therefore, this study aimed to examine the impact of agriculture and forestry on carbon emissions in light of institutional quality. Data at global and five regional levels from 1996 to 2015 were assessed using econometrics tools, namely cross-sectional tests, panel unit root tests, cointegration tests, Driscoll & Kraay, and fully modified ordinary least square regressions and causality analyses. The analysis indicates that agricultural production has a positive effect on CO2 emissions, whereas forestry has a negative impact. The direct and moderating effects of institutional quality on the CO2 emissions are positive. These results emphasize the importance of institutional excellence in the reduction in agricultural and forestry emissions. The study reveals that renewable energy consumption is crucial in improving environmental quality, whereas non-renewable energy consumption is not. Causality analysis reveals bidirectional causality between CO2 emissions and agriculture, forestry, and renewable energy. The study implies that countries should encourage renewable energy and the adoption of environment-friendly practices in agriculture. An increase in forest areas is also important for a clean environment. Nevertheless, the role of institutions for a sustainable environment cannot be underestimated.

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Authors and Affiliations

  1. School of Economics and Management, Panzhihua University, Panzhihua, Sichuan, 617000, China

    Rizwana Yasmeen

  2. Department of Economics, Federal Urdu University of Arts Science and Technology, Islamabad, 44000, Pakistan

    Ihtsham Ul Haq Padda

  3. School of International Business, Southwestern University of Finance and Economics, Chengdu, 611130, China

    Xing Yao

  4. School of Management, Zhejiang Shuren University, Hangzhou, China

    Wasi Ul Hassan Shah

  5. Faculty of Management & Administrative Sciences (FMAS), University of Sialkot, Sialkot, Pakistan

    Muhammad Hafeez

  6. Beijing Wuzi University, Beijing, China

    Muhammad Hafeez

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  1. Rizwana Yasmeen
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Appendix

Appendix

See Tables 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, and 19.

Table 6 Summary of the empirical literature (Agriculture, Forest, energy, institutions, and environment)
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Table 7 Country list
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Table 8 Data description
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Table 9 Descriptive analysis
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Table 10 Test of slope homogeneity
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Table 11 CD-T and CIPS test
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Table 12 Cointegration association (Agriculture—model)
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Table 13 Cointegration association (Forest—model)
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Table 14 Cointegration association (Agriculture & Institutions– model)
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Table 15 Cointegration association (Forest & Institutions– model)
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Table 16 Agriculture Model (FMOLS)
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Table 17 Forest model (FMOLS)
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Table 18 Agriculture & Institutions Model (FMOLS)
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Table 19 Forest & Institutions Model (FMOLS)
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Yasmeen, R., Padda, I.U.H., Yao, X. et al. Agriculture, forestry, and environmental sustainability: the role of institutions. Environ Dev Sustain 24, 8722–8746 (2022). https://doi.org/10.1007/s10668-021-01806-1

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