Synergistic role of agriculture production, fertilizer use, tourism, and renewable energy on CO2 emissions in South Asia: A static and dynamic analysis

Abstract

The most crucial industries for growth, particularly in developing countries, are agriculture, tourism, and the fertilizer industry. These businesses are also linked to environmental deterioration. The current study uses empirical research to inspect the links between carbon dioxide (CO₂) secretions and Gross Domestic Product (GDP) progression, government expenditure, tourism, fertilizer usage, renewable and non-renewable energies, and agricultural production. Information commencing from six South Asian nations is used to produce the findings between 1991 and 2019. Following the establishment of stationary and cointegration, a static analysis using a Fixed Effect and Random Effect Model and a dynamic analysis using a One Step Difference and System GMM (Generalized Method of Moments) are performed. This article employs Mean Group (MG) and Augmented Mean Group (AMG) approaches to increase robustness, while multicollinearity, heteroscedasticity, autocorrelation, and Cross-Sectional Dependency (CSD) are used for post-estimation. According to the study, the selected South Asian region's agricultural, fertilizer use, non-renewable energy use, tourism, GDP growth, and government spending all result in a rise in CO₂ emissions, while using clean energy reduces those emissions and is crucial to reducing those emissions. The study offers some policy ramifications concerning green farming and tourism.