Policy support and agricultural greenhouse gas emissions in BRICS-T countries: The role of financial development, markets, and institutions
Abstract
This study explores the impact of agricultural support policies on greenhouse gas emissions in BRICS-T countries (Brazil, Russia, India, China, South Africa, and Türkiye), emphasizing the role of financial development, market structures, and institutions. Using annual data from 2000 to 2021, the research employs advanced panel time-series econometric techniques, including the Augmented Mean Group (AMG) estimator and, the Westerlund and Edgerton cointegration test, to assess long-term relationships. Findings indicate that economic growth significantly contributes to rising agricultural emissions, while the influence of financial development varies across countries. In Türkiye and South Africa, financial institutions play a crucial role in promoting sustainable agricultural investments, thereby helping to mitigate emissions. Policy recommendations include redesigning subsidy mechanisms to support eco-friendly farming, integrating carbon pricing into agricultural strategies, and strengthening financial institutions’ role in green investments. By examining the intersection of agriculture, emissions, and finance, this study offers valuable insights for sustainable policy development in emerging economies.