LAUSR

The rapid growth of agriculture has led to a significant increase in energy utilization and CO 2 emissions. Agriculture performs a pivotal role in improving every country’s economy. The current study has the main objective to analyses the long-run impact of agricultural CO 2 discharge on economic growth, energy consumption (electricity utilization in the agriculture sector), financial development, foreign direct investment (FDI), and population for India. For the period 1978–2018, we applied ADF, PP, ERS, and KPSS unit root and Z&A and CMR structural interval tests to evaluate the stability and breaks in the data set. We check the cointegration of study variables through ARDL, Engle–Granger, and Johansen’s cointegration approaches. The findings of the long-run analysis showed a cointegration among the variables, which reveals that an escalation in economic growth and financial development refine the natural environment, while the upsurge in FDI and population further deteriorate the climate in India. However, agricultural sector electricity use shows an insignificant association with CO 2 emissions for both periods. On the basis of results, we recommend that legislators should offer an environment that provides opportunities for financial development and economic growth.