Effect of Agricultural Employment and Export Diversification Index on Environmental Pollution: Building the Agenda towards Sustainability

Abstract

Agricultural activities have a significant impact on environmental quality, because they generate waste that pollutes water and soil. In parallel, the supply of products has diversified in recent years to meet growing demand, exerting strong pressure on nature’s capacity for regeneration and absorption of waste. This research aims to examine the impact of agricultural employment and the export diversification index on ecological footprints, using advanced techniques of panel data econometrics. This relationship is moderated by population density and real per capita product. Cross-section dependence and slope homogeneity were included in the econometric models. The cointegration and causality analysis was reinforced by estimating the short- and long-term elasticities, using the AMG, CCE-MG, FMOLS, and DOLS models. Using annual data for 96 countries, we found a heterogeneous impact of agricultural employment and the export diversification index on ecological footprint, between the short and long term. The findings reveal that the increase of the product increases the pressure on the ecological footprint. The achievement of SDGs must include joint efforts between countries, and not in isolation. Those responsible for environmental policy should promote the idea that production must be friendly to the environment and promote the green growth of countries. The adoption of new technology, higher productivity agricultural employment, and the regulation of exports of sustainable products can contribute to achieving environmental sustainability.

What does the EKC theory leave behind? A state-of-the-art review and assessment of export diversification-augmented models

“…Associated results gave support to the EKC hypothesis between export diversification and pollution trend, which is in line with Ali et al ( 2022 ) for India. While Jiang et al ( 2022 ) did not incorporate a quadratic export diversification term within their common correlated effects mean group (CCE-MG) estimates specification, they showed how environmental pollution is significantly triggered by export diversification. Table 3 highlights key elements of this emerging literature.…”

Can the development of digital financial inclusion curb carbon emissions? Empirical test from spatial perspective

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