Long-term relationships of beef and dairy cattle and greenhouse gas emissions: Application of co-integrated panel models for Latin America

The cattle sector plays a pivotal role in the economies of numerous Latin American and Caribbean countries. However, it also exerts a significant impact on environmental degradation, including substantial contributions to greenhouse gas emissions (accounting for 23.5 % of global livestock emissions) and deforestation (70 % attributed to livestock in South America). This article aims to investigate the complex, long-term, and short-term relationships between population growth, pastureland expansion, deforestation, and the cattle sector in 15 countries across the region, focusing on their effects on greenhouse gas emissions as well as beef and dairy production. Utilizing data from FAOSTAT spanning the period from 1990 to 2019, a cointegrated panel model was developed using the Pooled Mean Group technique, resulting in the estimation of six models. The aggregate-level results for the region reveal the presence of relatively stable long-term relationships. This implies that over time, the influence of population growth, pastureland expansion, and deforestation on greenhouse gas emissions from cattle production tends to diminish in significance. This long-term behavior may be particularly pronounced in countries with more developed cattle sectors, where efforts to mitigate the environmental impacts of cattle production, such as promoting improved forage technologies, silvo-pastoral systems, grazing management practices, and the implementation of policies, regulatory frameworks, and incentives, have gained traction. These progressive countries can serve as regional benchmarks, and the lessons they have learned hold valuable insights for the sustainable intensification of cattle production in countries with less-developed cattle sectors.