1College of Economics and Management, China Three Gorges University, Yichang443002, China
2Department of Agri-Food Economics and Consumer Sciences, Laval University, Paul Comtois Bldg, Quebec City, Canada
*Corresponding Author: Zhaohui Qin, College of Economics and Management, China Three Gorges University, Yichang443002, China. Email: qinzhaohuiwilliam.ctgu@gmail.com
This paper investigates the impact of active oil rigs (ARIGS) on agricultural green total factor productivity (AGTFP) in 12 organization of the petroleum exporting countries (OPEC) during the period from 1998 to 2019. Although ARIGS play a prominent role in OPEC economies, their ecological implications for agricultural productivity have received less attention.
We estimate a fixed-effects panel data model to explore the association between ARIGS, Oil Production (OPROD), GDP per capita, Population (POP) and AGTFP. The analysis includes control variables like methane (CH4), nitrous oxide (N2O) and the balance of payments in current accounts (CAB). OPROD is tested in a mediation analysis, with GDP and POP as moderators, including interaction terms.
The findings show that AGTFP is negatively affected by ARIGS, a relationship mediated by OPROD. GDP alleviates the adverse effects of ARIGS and POP amplifies them. Such results highlight the need for policies to balance oil extraction and agricultural sustainability. Cited as an expected side effect of ARIGS, this underscores the need for OPEC nations to invest sufficiently in cleaner technologies and implement environmental regulations. Future studies should consider disaggregated data, as well as governance and institutional factors, to better understand the ARIGS-AGTFP association.
Active rigs, Agricultural green total factor productivity, Moderating mediation model, Oil production, Organization of the petroleum exporting countries
