Even though the economic growth and the increased agricultural production bring welfare increment, they could also load significant environmental costs to society. This study aims to investigate the existence of agriculture-induced EKC hypothesis in 47 developing countries during 1976-2017 by using dynamic panel data estimators. According to the long-run findings of the DOLS and the FMOLS estimators, there is an inverted U-shaped relationship that exists between income and the CO2 emissions, while agricultural production has a negative impact on environmental quality. In addition, the PMG estimator is also employed for robustness check. Likewise the DOLS and the FMOLS findings, the long-run results of the PMG estimator also support the existence of agriculture-induced EKC for developing countries. The empirical findings of this study provide stimulus results of policy makers to re-consider their current production infrastructure of agricultural sector to achieve sustainable development.
Keywords: Agriculture; Developing countries; Dynamic panel data; Economic growth; Environmental Kuznets curve.
© 2021. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.