The role of agricultural production, economic growth, renewable and fossil energy consumption on load capacity factor in the EU countries: Evidents from MMQR methodology
Makaleler > Tam Makale · 2026
Yazarlar: Çağla BUCAK
Tarım Ekonomisi Dergisi, Uluslararası, Scopus, 2026, cilt 32, ss 383-398
DOI: 10.24181/tarekoder.1844373
Özet
Purpose: This study aims to analyze the effects of economic growth, agricultural production, and renewable and fossil energy consumption on environmental quality, measured by the load capacity factor, in 24 European Union (EU) countries over the period 2000–2023. By focusing on the load capacity factor and employing the augmented mean group (AMG), common correlated effects (CCE), and method of moments quantile regression (MMQR) estimators, the study contributes to the literature by examining the agriculture–environment nexus and testing the Load Capacity Curve (LCC) hypothesis within the EU context.Design/Methodology/Approach: Following the confirmation of unit root, cointegration, and cross-sectional dependence, the study employs AMG and CCE estimators for the initial long-run analysis. To account for potential distributional asymmetries and non-normality, MMQR is applied. Furthermore, a Wald test for coefficient equality is conducted to statistically assess whether the estimated effects vary across the 10th to 90th quantiles or remain structurally stable.Findings: The empirical results indicate that the LCC hypothesis does not hold for EU countries. Agricultural production is found to improve environmental quality, likely reflecting the adoption of sustainable and resource-efficient farming practices in the region. Renewable energy consumption enhances environmental resilience, highlighting its role in reducing ecological pressures, whereas fossil energy consumption consistently deteriorates environmental quality due to its carbon-intensive nature. Crucially, the Wald test results indicate that the estimated coefficients are statistically homogeneous across all quantiles, suggesting that the impacts of economic growth, energy transition, and agricultural productivity are structurally stable and consistent across countries with varying levels of environmental performance.Originality/Value: This study contributes to the literature by extending the analysis of agriculture–environment interactions beyond conventional environmental pressure indicators and by adopting the load capacity factor as a more comprehensive measure of environmental resilience. Unlike previous studies that focus on average effects, this research applies the MMQR method and tests for coefficient equality, suggesting that the drivers of environmental quality in the EU are structurally stable across countries.