Agricultural technologies and carbon emissions: evidence from Jordanian economy

Abstract

Theoretically, agriculture can be the victim and the cause of climate change. Using annual data for the period of 1970–2014, this study examines the interaction between agriculture technology factors and the environment in terms of carbon emissions in Jordan. The results provide evidence for unidirectional causality running from machinery, subsidies, and other transfers, rural access to an improved water source and fertilizers to carbon emissions. The results also reveal the existence of bidirectional causality between the real income and carbon emissions. The variance error decompositions highlight the importance of subsidies and machinery in explaining carbon emissions. They also show that fertilizers, the crop and livestock production, the land under cereal production, the water access, the agricultural value added, and the real income have an increasing effect on carbon emissions over the forecast period. These results are important so that policy-makers can build up strategies and take in considerations the indicators in order to reduce carbon emissions in Jordan.