4.2. Model Builds
In this paper, five different VAR models are constructed to study the relationship between each variable, and the relationship between each variable is cross-verified by establishing several different models, as follows:
(1) To study the relationship between economic development, agroforestry development, and energy consumption, model 1 is built as shown in Equation (
11).
where
Y represents the variable studied,
represents the variable of the current period, and
represents the variable of the lag
m period (
m≥ 1), as shown in Equation (
12).
(2) To study the relationship between agroforestry development, energy consumption, and population, model 2 is constructed as shown in Equation (
13).
where
Y represents the variable studied,
represents the variable of the current period, and
represents the variable of the lag
m period (
m≥ 1), as shown in Equation (
14).
(3) To study the relationship between agroforestry development, energy consumption, and CO
emissions, model 3 is constructed as shown in Equation (
15).
where
Y represents the variable studied,
represents the variable of the current period, and
represents the variable of the lag
m period (
m ≥ 1), as shown in Equation (
16).
(4) To study the relationship between energy consumption, population, and CO
emissions, model 4 is built as shown in Equation (
17).
where
Y represents the variable studied,
represents the variable of the current period, and
represents the variable of the lag
m period (
m ≥ 1), as shown in Equation (
18).
(5) To study the relationship between economic development, agroforestry development, energy consumption, and CO
emissions, Model 5 is built as shown in Formula (
19).
where
Y represents the variable studied,
represents the variable of the current period, and
represents the variable of the lag
m period (
m ≥ 1), as shown in Equation (
20).
where
i =
4.4. Impulse Response Analysis
The results of the impulse response of Model 1 are shown in
Figure 7, where agroforestry development (D2_AFD) is affected by a shock of one unit standard deviation to the VAR system: Agroforestry development (D2_AFD) absorbs the shock by decreasing and then increasing by the corresponding percentage unit, and this effect does not subside until after period 20. Energy consumption (D2_EC) is affected by the shock, decreasing and then increasing, reaching a peak in period 4 and slowly decreasing after period 20. Economic development (D2_GDP) is affected by the shock and absorbs it instantly, decreasing and then increasing cyclically, before leveling off after period 25.
The impact on the VAR system of a one-unit standard deviation shock to energy consumption (D2_EC) is as follows: Energy consumption (D2_EC) absorbs the shock, decreases, and then increases by a percentage of the corresponding unit, with the impact leveling off after period 10. Agroforestry development (D2_AFD) is affected by this shock and absorbs it instantaneously, decreasing and then increasing, reaching a peak in period 3 and slowly decreasing after period 10. Economic development (D2_GDP) and agroforestry development (D2_AFD) show similar changes.
The impact on the VAR system of a one-unit standard deviation shock to economic development (D2_GDP) is as follows: Economic development (D2_GDP) absorbs the shock, decreases, and then increases by a percentage of the corresponding unit, and this effect does not subside until after period 25. Agroforestry development (D2_AFD) is affected by this shock and absorbs it instantaneously, rising and then falling, and then continuing to fluctuate upwards until period 25. Energy consumption (D2_EC) and agroforestry development (D2_AFD) show similar changes.
The results of the impulse response of Model 2 are shown in
Figure 8, where agroforestry development (D2_AFD) is affected by a shock of one unit standard deviation to the VAR system: Agroforestry development (D2_AFD) absorbs the shock by first decreasing and then increasing by the corresponding percentage of units, and this effect fades after 20 periods. Energy consumption (D2_EC) is affected by the shock, and it decreases and then increases, reaching a peak in period 4 and then a minimum in period 5, before slowly decreasing in period 20. Economic development (D2_GDP) is affected by the shock and absorbs it instantaneously, rising and then falling, before leveling off after period 25.
The impact on the VAR system of a one-unit standard deviation shock to energy consumption (D2_EC) is as follows: Energy consumption (D2_EC) absorbs the shock, decreases, and then increases by a percentage of the corresponding unit, and the impact remains until period 25. Agroforestry development (D2_AFD) is affected by this shock and absorbs it instantly, rising and then falling, reaching a minimum peak in period 5 and slowly declining after period 10. Population size (D2_PS) is affected by the shock and decreases and then increases, leveling off after period 20.
The impact on the VAR system of a one-unit standard deviation shock to population (D2_PS) is as follows: The impact of this shock to population (D2_PS) is absorbed instantaneously, decreases gradually, and then continues to fluctuate upwards until it levels off after period 20. Agroforestry development (D2_AFD) absorbs the shock instantaneously, rises, and then falls until it reaches a minimum peak in period 9 and increases by the corresponding percentage of units, which gradually subsides until period 20. Energy consumption (D2_EC) and agroforestry development (D2_AFD) show similar changes.
The results of the impulse response of Model 3 are shown in
Figure 9, where agroforestry development (D2_AFD) is affected by a one-unit standard deviation shock to the VAR system: Agroforestry development (D2_AFD) absorbs the shock, decreases, and then increases by the corresponding percentage unit, and this effect subsides until after period 15. The impact of the shock on CO
emissions (D2_CO
) is absorbed instantaneously, decreases, and then increases, fluctuating cyclically until it plateaus after period 15. Energy consumption (D2_EC) is affected by this shock and absorbs it instantaneously, decreasing and then increasing, reaching a minimum peak in period 3 and then slowly decreasing and leveling off after period 15.
The impact on the VAR system of a shock to CO emissions (D2_CO) of one unit standard deviation is as follows: Agroforestry development (D2_AFD) absorbs the shock, rising and then falling, reaching a minimum peak in period 8, and gradually leveling off after period 10. After period 15, the effect slowly declines. Energy consumption (D2_EC) is affected by this shock and absorbs it instantaneously, rising and then falling, before declining and leveling off after period 10.
The impact on the VAR system of a one-unit standard deviation shock to energy consumption (D2_EC) is as follows: Agroforestry development (D2_AFD) absorbs the shock instantaneously, increases, and then decreases, and this effect subsides until after period 10. The effect will continue to rise and fluctuate until it subsides after period 10. Energy consumption (D2_EC) and CO emissions (D2_CO) show similar changes and increase by a corresponding percentage of units.
The results of the impulse response of Model 4 are shown in
Figure 10, where CO
emissions (D2_CO
) are affected by a shock of one unit standard deviation to the VAR system: CO
emissions (D2_CO
) absorb the shock, first decreasing and then increasing by the corresponding percentage of units, and this effect subsides until after period 15. Energy consumption (D2_EC) is affected by this shock and absorbs it instantaneously, rising and then falling, peaking in period 3, before declining and leveling off in period 10. Population size (D2_PS) is affected by this shock and absorbs it instantaneously, rising and then falling, before leveling off after period 20.
The impact on the VAR system of a shock to energy consumption (D2_EC) of one unit standard deviation is as follows: CO emissions (D2_CO) absorb the shock instantaneously, falling and then rising, peaking in period 2, and leveling off after period 10. Energy consumption (D2_EC) is affected by this shock and absorbs it instantaneously, decreasing and then increasing, before declining after period 15. Population size (D2_PS) is affected by this shock and absorbs it instantly, decreasing and then increasing, before decreasing and leveling off after period 20.
The impact on the VAR system of a unit standard deviation shock to population size (D2_PS) is as follows: CO emissions (D2_CO) absorb the shock instantaneously, rising and then falling, gradually rising and peaking in period 9, and then leveling off after period 20. Energy consumption (D2_EC) is affected by this shock and absorbs it instantaneously, rising and then falling, and then continuing to fluctuate upwards until period 25. Population size (D2_PS) is affected by this shock and absorbs the shock until it falls, reaching a minimum peak in period 5, then rising and leveling off after period 10.
The results of the impulse response of Model 5 are shown in
Figure 11, where agroforestry development (D2_AFD) is affected by a shock of one unit standard deviation to the VAR system: Agroforestry development (D2_AFD) absorbs the shock by first decreasing and then increasing by a corresponding percentage unit, and this effect remains until period 30. CO
emissions (D2_CO
) will absorb the shock instantaneously, decreasing and then increasing, and will continue to fluctuate, and this effect will not subside until period 30. Energy consumption (D2_EC) absorbs the shock, decreases, and then increases by a percentage of the corresponding unit, and this effect does not subside until period 30. Economic development (D2_GDP) is affected by this shock and absorbs it instantaneously, decreasing and then increasing, and this effect does not subside until period 30.
CO emissions (D2_CO) are affected by a shock of one unit standard deviation to the VAR system: Agroforestry development (D2_AFD) absorbs the shock instantaneously, rising and then falling, reaching a minimum peak in period 2, which subsides until period 10. The effect slowly declines after period 10. Energy consumption (D2_EC) is affected by this shock and absorbs it instantaneously, rising and then falling, before continuing to fluctuate upwards, with the effect slowly declining and leveling off after period 10. Economic development (D2_GDP) is affected by this shock and absorbs it instantaneously, decreasing and then increasing, and this effect remains in place until period 30.
The impact of a unit standard deviation shock to energy consumption (D2_EC) on the VAR system is as follows: Agroforestry development (D2_AFD) absorbs the shock instantaneously, decreasing and then increasing, and this effect subsides after period 10. The impact of the shock on CO emissions (D2_CO) is absorbed instantaneously, decreasing and then increasing, and gradually subsiding after period 10. Energy consumption (D2_EC) is affected by this shock and absorbs it, decreasing and then increasing, with the effect declining and leveling off after period 10. Economic development (D2_GDP) is affected by this shock and absorbs it instantaneously, decreasing and then increasing, and this effect remains in place until period 30.
The impact on the VAR system of a one-unit standard deviation shock to economic development (D2_GDP) is as follows: Agroforestry development (D2_AFD) absorbs the shock instantaneously, rising and then falling, and the impact remains unabated until period 30. CO emissions (D2_CO) absorb the shock instantaneously, falling and then rising, and the impact remains unabated until period 30. Energy consumption (D2_EC) is affected by this shock and absorbs the shock, rising and then falling, and this effect does not subside until period 30. Economic development (D2_GDP) is affected by this shock and absorbs it instantaneously, decreasing and then increasing.
4.5. Variance Decomposition
Analysis of the variance decomposition of the VAR model captures information on the relative importance of each stochastic disturbance term in the system that has an impact on the endogenous variables, the contribution of each structural shock to changes in the endogenous variables, and so on.
The results of the variance decomposition of Model 1 are shown in
Figure 12. Agroforestry development (D2_AFD) has a positive shock effect on itself, reaching its strongest point in period 2, then gradually weakening, rising slightly in period 5, and then leveling off. Agroforestry development (D2_AFD) has a positive impact on energy consumption (D2_EC), which is strongest in period 2, rises slightly in period 5, and then plateaus. Agroforestry development (D2_AFD) exerts a positive shock on economic development (D2_GDP), which continues to be high, declines slightly in period 4, rises slightly in period 5, and then levels off.
Energy consumption (D2_EC) has a slight positive impact on agroforestry development (D2_AFD). Energy consumption (D2_EC) has a significant positive impact on itself, reaching its strongest point in period 2, then gradually decreasing and leveling off after period 5. Energy consumption (D2_EC) has a slight positive impact on economic development (D2_GDP), which is not significant.
Economic development (D2_GDP) has a significant positive impact on agroforestry development (D2_AFD) and shows a continuous trend of strength. Economic development (D2_GDP) has a significant positive shock effect on energy consumption (D2_EC), which reaches its strongest point in period 3, then decreases slightly, and finally plateaus. Economic development (D2_GDP) exerts a significant positive shock effect on itself, reaching its strongest point in period 2, then decreasing slightly, and leveling off after period 5.
The results of the variance decomposition of Model 2 are shown in
Figure 13, where agroforestry development (D2_AFD) has a significant positive impact on itself, reaching its strongest point in period 2, and then slightly weakening and leveling off. Agroforestry development (D2_AFD) has a positive impact on energy consumption (D2_EC) and tends to increase gradually. Agroforestry development (D2_AFD) has a significant positive impact on population size (D2_PS), which tends to increase gradually.
Energy consumption (D2_EC) has a slight positive impact on agroforestry development (D2_AFD), but the impact is not significant. Energy consumption (D2_EC) has a significant positive impact on itself, reaching its strongest point in period 2, then decreasing and leveling off after period 5. Energy consumption (D2_EC) has a slight positive impact on population size (D2_PS), which is not significant. Population size (D2_PS) has a slight positive shock on agroforestry development (D2_AFD), which is insignificant. Population size (D2_PS) has a slight positive shock on energy consumption (D2_EC), which is insignificant. Population size (D2_PS) exerts a significant positive shock on itself, reaching its strongest point in period 2, then decreasing slightly and leveling off after period 5.
The results of the variance decomposition of Model 3 are shown in
Figure 14, which shows that agroforestry development (D2_AFD) has a significant positive impact on itself, reaching its strongest point in period 2, and then slightly weakening and leveling off. Agroforestry development (D2_AFD) has a significant positive impact on CO
emissions (D2_CO
), which tend to increase gradually. Agroforestry development (D2_AFD) has a positive impact on energy consumption (D2_EC), which tends to increase gradually.
CO emissions (D2_CO) have a slight positive impact on agroforestry development (D2_AFD), but the impact is not significant. CO emissions (D2_CO) have a significant positive impact on themselves, reaching their strongest point in period 2, then gradually weakening and leveling off after period 5. CO emissions (D2_CO) have a slight positive impact on energy consumption (D2_EC), but the impact is not significant.
Energy consumption (D2_EC) has a slight positive impact on agroforestry development (D2_AFD), but the impact is not significant. Energy consumption (D2_EC) has a slight positive impact on CO emissions (D2_CO), but the impact is not significant. Energy consumption (D2_EC) exerts a significant positive shock on itself, reaching its strongest point in period 2, then decreasing slightly and leveling off after period 5.
The results of the variance decomposition of Model 4 are shown in
Figure 15. CO
emissions (D2_CO
) have a significant positive shock effect on themselves, reaching their strongest point in period 2, then weakening slightly, and leveling off after period 5. CO
emissions (D2_CO
) have a positive impact on energy consumption (D2_EC), but the impact is not significant. CO
emissions (D2_CO
) have a positive impact on population size (D2_PS), which tends to increase gradually.
Energy consumption (D2_EC) has a significant positive impact on CO emissions (D2_CO), with an increasing trend. Energy consumption (D2_EC) has a significant positive impact on itself, reaching its strongest point in period 2, then decreasing slightly and leveling off after period 5. Energy consumption (D2_EC) has a slight positive impact on population size (D2_PS), which is not significant.
Population size (D2_PS) has a slight positive impact on CO emissions (D2_CO), but the impact is not significant. Population size (D2_PS) has a slight positive impact on energy consumption (D2_EC), but the impact is insignificant. Population size (D2_PS) has a significant positive impact on itself, reaching its strongest point in period 2, and then decreasing and leveling off.
The results of the variance decomposition of Model 5 are shown in
Figure 16, which shows that agroforestry development (D2_AFD) has a significant positive impact on itself, reaching its strongest point in period 2, and then slightly weakening and leveling off. Agroforestry development (D2_AFD) has a significant positive impact on CO
emissions (D2_CO
), which tend to increase gradually. Agroforestry development (D2_AFD) has a significant positive impact on energy consumption (D2_EC), which is strongest in period 2, then weakens slightly, and levels off after period 5. Agroforestry development (D2_AFD) has a positive impact on economic development (D2_GDP) and tends to increase gradually.
CO emissions (D2_CO) have a slight positive impact on agroforestry development (D2_AFD), which tends to increase gradually. CO emissions (D2_CO) have a significant positive impact on themselves, reaching their strongest point in period 2, and then weakening slightly and leveling off. CO emissions (D2_CO) have a slight positive impact on energy consumption (D2_EC), which is insignificant. CO emissions (D2_CO) have almost no significant impact on economic development (D2_GDP).
Energy consumption (D2_EC) has a slight positive impact on agroforestry development (D2_AFD), but the impact is not significant. Energy consumption (D2_EC) has a positive impact on CO emissions (D2_CO), but the impact is not significant. Energy consumption (D2_EC) exerts a significant positive shock on itself, reaching its strongest point in period 2, then decreasing slightly and leveling off after period 5. Energy consumption (D2_EC) has almost no significant impact on economic development (D2_GDP).
Economic development (D2_GDP) has a significant positive impact on agroforestry development (D2_AFD), which continues to show a strong trend. Economic development (D2_GDP) has a significant positive impact on CO emissions (D2_CO), which continues to show a strong trend. Economic development (D2_GDP) has a significant positive impact on energy consumption (D2_EC) and shows a continuous strong trend. Economic development (D2_GDP) exerts a significant positive shock on itself, reaching its strongest point in period 2, then decreasing slightly and leveling off after period 5.