The impact of climate changes on agriculture export trade in Pakistan: Evidence from time‐series analysis

Agriculture is one of the primary contributors to Pakistan's economy. However, over the last few decades, the atmospheric carbon dioxide emission has been amplified to a great extent in Pakistan. This amplification may cause climate change, global warming, and environmental mitigation in Pakistan. This paper empirically investigates the impact of CO2 emissions on the agricultural export trade of Pakistan over the period 1975–2017. Evidence suggests that climate change could be a primary cause for the decline in Pakistan's agriculture export trade; no studies have been carried out for this specific issue, particularly over time. In this paper, the empirical analysis suggests the negative coefficient of agriculture export trade with CO2 emissions subsequently decreases agriculture export trade, which leads to direct impact on Pakistan's economy. Both theoretical and empirical outcomes suggest that the adaptation of clean and green energies and technologies are the key to reduce pollution in Pakistan. Overall, the effects of carbon dioxide emissions on agriculture export trade are stronger in the long‐run dynamics, thus making the finding heterogeneous. Possible initiatives should be taken by the government of Pakistan to improve the agriculture sector and it should also introduce new policies to reduce the emissions of carbon dioxide.