Assessing the Impact of Climate Change, Financial Development and Other Macro Variables on Agricultural Productivity in South Asian Economies

Abstract

This study examines the intricate relationships between CO2 emissions, renewable energy, institutional quality, and human capital, and their impact on agricultural productivity in South Asian economies, with a specific focus on Pakistan. By employing the Autoregressive Distributed Lag (ARDL) method, this research investigates the interconnectedness and dynamics of these variables over an extensive time period. The findings reveal the positive influence of financial development, human capital, and institutional quality on agricultural growth. However, the study underscores the critical need to address climate change challenges and reduce CO2 emissions to ensure long-term sustainability. Furthermore, the study emphasizes the significance of developing human capital, promoting renewable energy sources, improving institutional quality, and implementing sustainable agricultural practices. These insights provide policymakers, stakeholders, and researchers with valuable information to make informed decisions and formulate strategies that drive sustainable agricultural development and foster economic growth in the region. The implications of this research extend beyond academic discourse, as it contributes to the attainment of the Sustainable Development Goals. By addressing the identified factors, South Asian countries can enhance agricultural productivity, strengthen resilience, and make substantial strides towards achieving global targets. This study serves as a valuable resource for policymakers, guiding them towards effective measures that promote sustainable agricultural practices, mitigate climate change impacts, and optimize resource allocation.