Heterogeneous Relationships Between CO2 Emissions and Renewable Energy in Agriculture in the Visegrad Group Countries

This manuscript analyzes the relationship between carbon dioxide emissions and selected factors for the agricultural sector in the Visegrad Group (V4) countries. The aim of the study was to identify and assess short-term relationships and directions of causality between carbon dioxide emissions, renewable energy consumption, economic openness, labor productivity, and income levels in the agricultural sector of the V4 countries. Short-term ARDL modeling was used for each V4 country, along with Granger causality. The analyses offer a broad perspective on how agricultural practices shape greenhouse gas emissions and provide information to mitigate their environmental impact. Heterogeneous interactions between the studied factors and specific causal relationships were identified in each country. Only in Hungary and Slovakia was a unidirectional causality observed, namely CO2 → renewable energy (RE) sources, while in Poland and the Czech Republic, no direct causal relationship with emissions was observed. However, these relationships were indirect through income and economic openness. Strong drivers include, in particular, labor productivity, the share of renewable energy, and economic openness. Based on the analyses, decision-makers are recommended to create incentives, including economic ones, to increase the share of renewable energy in agricultural production. This improves economic and environmental outcomes, both locally and nationally.