Energy-related GHG emission in agriculture of the European countries: An application of the Generalized Divisia Index

Sustainable agriculture, food security, and welfare of the farmers require an integrated analysis of the performance of the agricultural sector. In this paper, we follow the energy-environment-economy framework and focus on decomposition of changes in the energy-related greenhouse gas (GHG) emission in agricultural sectors of the selected European Union (EU) countries. The research relies on country-level data from FAO and Eurostat describing economic activity, energy use, and GHG emission in the agricultural sectors of the European countries during 1995-2012. The main drivers (carbon factor of energy consumed in agriculture, energy intensity of agricultural production and growth in agricultural production) and their impacts on the energy-related GHG emissions in agriculture are analysed for selected countries. The Generalized Divisia Index is applied to decompose the changes in the energy-related GHG emissions. France, Latvia, and Belgium appeared as the only countries with increase in GHG emissions during 1995-2012. In the case of France, energy intensity went up along with increase in the scale of agricultural production. In Latvia and Belgium, an increase in carbon factor appeared as the major factor driving an increase in GHG emissions. The appropriate policies need to be employed in these countries seeking to reduce GHG emissions from energy consumption in agriculture. Improvements in energy efficiency appear to be a more feasible mean for ensuring further reductions in GHG emission.