Impact of Modernized Agriculture and Trade on Carbon Emissions: The Role of Fossil Fuel and Renewable Energy Consumption Evidenced from ASEAN States

Abstract

Sustainable development goals developed to reduce the level of climate transformation and its effects, this study explores the causal association between aggregate energy consumption resources, trade liberalization, CO2 emissions, and modern agriculture in selected ASEAN nations from 2000 to 2018 with the help of panel FMOLS (fully modified ordinary least square). Empirical findings have shown that the value addition level of agricultural products minimizes CO2 emissions in those countries where pollution is high. And found a positive relationship between energy consumption and CO2 emissions. Trade liberalization has made it possible to reduce CO2 emissions in economies where environmental pollution is getting lower. While the use of fossil fuels has intensified CO2 emissions, renewable energy consumption has confirmed positive effects on the pollution of the environment. While Climate-smart agriculture preferred institutions to raise income and productivity, adjusting to climate change sustainably leads to decreased greenhouse gas emissions. For example, new energy resources, renewable energy help keep the environment clean and healthy. It avoids excessive dependency on fossil fuel energy for the determinants of the agriculture sector. On the other hand, Trade policy can motivate the flow of investment opportunities and technology for a specialty in economies of scale and production. Therefore, examining strategies that encourage the agricultural sector's productivity and creating active markets for international trade in ASEAN countries will improve living standards and keep the environment clean and healthy.