Exploring the dynamic nexus of factors shaping crop production

This study elucidates the interconnected dynamics that impact crop production, highlighting how various factors including green energy, CO2 emissions, green finance, health expenditure, green innovation, agricultural practices, and the consumer price index can directly influence crop production. Utilizing panel data spanning seventeen crop-producing nations worldwide from 2001 to 2020, the research employs advanced econometric techniques, including PVAR/GMM, FMOLS, DOLS, and Granger causality tests to ensure robustness. The results from both the Panel VAR/GMM, FMOLS, and DOLS indicate a significant positive impact of green energy on crop production. In contrast, CO2 emissions are found to exert a significant negative influence on crop production. Additionally, green finance positively contributes to crop production, albeit with moderate significance. Health expenditure demonstrates a highly significant positive effect on crop production as well. However, green innovation does not appear to have a significant impact on crop production. Furthermore, agricultural practices are shown to significantly enhance crop production, while the consumer price index also exhibits a significant positive effect on agricultural output. In terms of Granger causality, the analysis reveals a unidirectional causal relationship from crop production (CRP) to green energy and a bidirectional causality “between CO2 emissions and crop production”. Notably, no causal link is identified between green finance and CRP. However, a bidirectional relationship is observed between Health expenditure and CRP. Additionally, there is a unidirectional causal relationship from CRP to agricultural practices, indicating that crop production Granger causes agricultural output. Lastly, the study finds a unidirectional causality from the consumer price index to CRP.