The dynamic nexus between agricultural productivity and renewable energy consumption in BRICS: the role of financial inclusion and foreign direct investment
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 4 March 2024
Abstract
Purpose
This study aims to examine the impact of renewable energy consumption on agricultural productivity while accounting for the effect of financial inclusion and foreign direct investment in Brazil, Russia, India, China and South Africa (BRICS) countries during 2000–2020.
Design/methodology/approach
The study has used the latest data from World Bank and International Monetary Fund databases. The dependent variable in the study is agricultural productivity. Renewable energy consumption, carbon emissions, financial inclusion and foreign direct investment are independent variables. Autoregressive distributed lag (ARDL) approach was used to examine the short-run and long-run impact of renewable energy consumption, carbon emissions, foreign direct investment and financial inclusion on agricultural productivity.
Findings
The findings imply that consumption of renewable energy, carbon emissions and foreign direct investment have a positive impact on agricultural productivity while financial inclusion in terms of access does not seem to have any significant impact on agricultural productivity. Providing farmers, access to financial services can be beneficial, but its usage holds more importance in impacting rural outcomes. The problem lies in the fact that there is still a gap between access and usage of financial services.
Research limitations/implications
Policymakers should encourage the increase in the usage of renewable energy and become less reliant on non-renewable energy sources which will eventually help in tackling the problems associated with climate change as well as enhance agricultural productivity.
Originality/value
Most of the earlier studies were based on tabular analysis without any empirical base to establish the causal relationship between determinants of agricultural productivity and renewable energy consumption. These studies were also limited to a few regions. The study is one of its kind in exploring the severity of various factors that determine agricultural productivity in the context of emerging economies like BRICS while accounting for the effect of financial inclusion and foreign direct investment.
Keywords
Acknowledgements
Data availability statement: The data used for the study is extracted from World Bank (WB) database and the International Monetary Fund (IMF) database and can be provided on request.
Conflict of interest statement: The authors declare no conflict of interest.
Citation
Soni, S. and RL, M. (2024), "The dynamic nexus between agricultural productivity and renewable energy consumption in BRICS: the role of financial inclusion and foreign direct investment", International Journal of Energy Sector Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJESM-08-2023-0028
Publisher
:Emerald Publishing Limited
Copyright © 2024, Emerald Publishing Limited