Towards long-term sustainable environment: does agriculture and renewable energy consumption matter?

This work analyzed the long-run (LR) and short-run (SR) effects of renewable and non-renewable energy (RE and NRE) usage, economic development (ED), agricultural value-added (AVA), and forestry area (FA) on the environmental quality (EQ) in China spanning from 1990 to 2015. The autoregressive distributed lags (ARDL) bounds testing method and the Johansen cointegration approach are applied to produce empirical estimates. The empirical results of the ARDL and the fully modified ordinary least square (FMOLS) estimators established that renewable energy usage and forest area reduce CO2 emissions and improve the environmental quality, while non-renewable energy consumption, economic development, and agricultural output increase the level of CO2 emissions in China. The robustness of outcomes is checked through the Granger causality test, impulse response function (IRF), and variance decomposition method (VDM) suggesting that fossil fuel usage in the agriculture production process is mainly accountable for China’s CO2 emissions. These findings have inherent policy implications for the central and local Chinese government, which are exhibited in the “Conclusions” section.