Assessing the impact of agricultural production and institutional quality on environmental degradation in Somalia

Abstract

Environmental degradation poses a significant threat to the well-being of all living beings and ecosystems. This paper investigates the impact of agricultural production, institutional quality, energy consumption, and domestic investment on environmental degradation in Somalia. Using ARDL and Dynamic OLS models, we analyze data from 1990 to 2020 and find significant contributions from agriculture, institutions, and energy. Granger causality tests reveal strong bidirectional relationships between institutions and environmental degradation, and a unidirectional effect of agriculture on the environment. The findings indicate a need for targeted policies aimed at enhancing institutional quality while mitigating potential negative environmental impacts. Additionally, there is a call to promote sustainable agricultural practices and the adoption of clean energy in Somalia.