Disaggregated Agricultural Impacts on CO 2 Emissions: The Role of Renewable Energy in Sustainable Agricultural Transformation in South America

This study examines how disaggregated agricultural activities shape environmental performance and strategic transition pathways in South America over the period 1990–2023. Focusing on agricultural value added, fertilizer consumption, rice production, livestock production, cropland expansion, and renewable energy consumption, the study investigates how different dimensions of agricultural production influence CO 2 emissions and sustainability outcomes. To capture distributional heterogeneity and asymmetric effects across emission levels, the study employs Method of Moments Quantile Regression (MMQR) and Simultaneous Quantile Regression (SQR). The results reveal important asymmetries within agricultural systems. Agricultural value added and livestock production are negatively associated with CO 2 emissions; however, these associations should be interpreted cautiously, as they may reflect structural composition, productivity differences, changes in production systems, or country‐specific agricultural and energy conditions rather than direct evidence that these activities automatically reduce emissions. In contrast, fertilizer consumption, rice production, and cropland expansion significantly intensify emissions, indicating environmentally costly production strategies linked to input‐intensive and land‐expanding agricultural practices. Renewable energy consumption is consistently associated with lower CO 2 emissions across all quantiles, highlighting its role as an important pathway for low‐carbon transition within agribusiness systems. The findings underscore the need for a structural transformation of agricultural value chains toward low‐carbon production systems. Firms and agribusiness stakeholders must reorient production strategies by integrating renewable energy, optimizing input use efficiency, and reducing land‐intensive expansion models to enhance long‐term competitiveness under tightening environmental constraints. The study provides strategic insights for policymakers and agribusiness actors aiming to align agricultural development with climate resilience, sustainable competitiveness, and the Sustainable Development Goals (SDGs).