Determinants of Sustainable Development of Agriculture in the WEFE-Nexus Approach in OECD-EU Member States

Variable	Indicator (subsystem)	Description	Unit/measurement	Source
AGR	Agriculture	Share of agriculture in GDP (%)	Percent of GDP	WDI
WATER	Water subsystem	Total water withdrawal from agricultural, industrial and municipal sectors	Cubic meters per capita	Aquastat
FOOD	Food subsystem	Agricultural production of major crops (sorghum, corn, rice, wheat, beans, millets, banana, cassava, potatoes)	Tonnes	FAOSTAT
ENERGY	Energy subsystem	Renewable energy consumption (% of total energy use)	Percent	WDI
ENVIRONMENT	Environment subsystem	Total greenhouse gas emissions (CO₂ + CH₄ + NO₂)	Kilotonnes	FAOSTAT

[i] WDI, world development indicators.

Table 2.

Cross sectional dependency tests

Test	Statistic	p-Value
Pesaran	78.75***	0.00
Fisher	450.31***	0.00
Frees	22.86***	0.00

[i] Note: *** indicates that the estimated parameters are significant at the 1% significance level, respectively.

Table 3.

Unit root test

Variable	CIPS	CADF
agr	−4.39***	−14.75***
water	−4.70***	−16.49***
Lfood	−4.12***	−13.35***
energy	−4.16***	−13.48***
Lenv	−3.09***	−7.52***

[i] CIPS, cross-sectionally augmented IPS; CADF, cross-sectionally augmented Dickey-Fuller.

[ii] Note: *** indicate that the estimated parameters are significant at the 1% significance level respectively.

Table 4.

Heterogeneity slope test

Δ	p-value	Δ Adj	p-value
−14.15***	0.00	−5.15***	0.00

[i] Note: *** indicate that the estimated parameters are significant at the 1% significance level respectively.

Table 5.

Cointegration test

Test	Statistic	p-Value
Westerlund	3.98***	0.00
Modified Dickey–Fuller	2.13**	0.02
Dickey–Fuller	−2.67***	0.00
Augmented Dickey–Fuller	−1.64*	0.09
Unadjusted modified Dickey–Fuller	−23.91***	0.00
Unadjusted Dickey–Fuller	−19.37***	0.00

[i] Note: ***, ** and * indicate that the estimated parameters are significant at the 1%, 5% and 10% significance level, respectively.

Table 6.

Regression results (dependent variable: agr)

Variable	DKSE		FGLS		PCSE
Variable	Coefficient	P > t	Coefficient	P > z	Coefficient	P > \|z\|
water	0.02*	0.06	0.02***	0.00	0.02*	0.05
Lfood	−0.70	0.28	−0.63	0.11	−0.70	0.42
energy	−0.04**	0.03	−0.03***	0.00	−0.04*	0.06
Lenv	−0.82*	0.07	−0.87***	0.00	−0.82**	0.03
Intercept	9.64**	0.02	9.03***	0.00	9.64*	0.05

[i] DKSE, Driscoll-Kraay estimator; FGLS, feasible generalized least squares; PCSE, panel-corrected standard errors.

[ii] Note: (***) and (**) indicate that the estimated parameters are significant at the 1% and 5% significance level, respectively.

Table 7.

Spectral Granger causality approach

Pair	Share of ω	Band significance
water to agr	0.99	Significant (most ω)
water to agr	1	Significant (most ω)
water to agr	1	Significant (most ω)
Lfood to agr	0.99	Significant (most ω)
Lfood to agr	1	Significant (most ω)
Lfood to agr	1	Significant (most ω)
energy to agr	0.99	Significant (most ω)
energy to agr	1	Significant (most ω)
energy to agr	0.5	Significant (many ω)
Lenv to agr	0.99	Significant (most ω)
Lenv to agr	1	Significant (most ω)
Lenv to agr	1	Significant (most ω)

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Articles in this issue

DOI: https://doi.org/10.2478/ceej-2026-0012 | Journal eISSN: 2543-6821 | Journal ISSN: 2544-9001

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Language: English

Page range: 208 - 226

Submitted on: Dec 6, 2025

Accepted on: Mar 24, 2026

Published on: Jun 20, 2026

Published by: Faculty of Economic Sciences, University of Warsaw

In partnership with: Paradigm Publishing Services

Keywords:

agricultural development,

environmental sustainability,

renewable energy transition,

water use efficiency,

WEFE Nexus

JEL:

O13,

Q15[Q2.1

Related subjects:

Business and economics,

Political economics,

Economic theory, systems and structures,

Microeconomics,

Macroeconomics,

Economic policy

© 2026 Mehdi Seraj, Ata Pervar, Huseyin Ozdeser, Fatma Turuc Seraj, published by Faculty of Economic Sciences, University of Warsaw
This work is licensed under the Creative Commons Attribution 4.0 License.

Volume 13 (2026): Issue 60 (January 2026)

Determinants of Sustainable Development of Agriculture in the WEFE-Nexus Approach in OECD-EU Member States

Figures & Tables

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