IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v66y2021ics0160791x21000828.html
   My bibliography  Save this article

Assessing the impacts of climatic and technological factors on rice production: Empirical evidence from Nepal

Author

Listed:
  • Chandio, Abbas Ali
  • Jiang, Yuansheng
  • Ahmad, Fayyaz
  • Adhikari, Salina
  • Ain, Qurat Ul

Abstract

Considering the significant impact of climate change on major staple food crops in Nepal, this study aims to estimate the influence of climatic factors (i.e., CO2 emissions, average temperature, and average precipitation) and technological factors (i.e., fertiliser consumption and improved seeds) on rice production in Nepal from 1990 to 2016 using the autoregressive distributed lag (ARDL) approach. While controlling for cultivated rice areas, agricultural credit variables are likely other essential rice production factors. This study reveals a long-run cointegration connection among the variables. The ARDL results indicate that CO2 emissions decreased rice production by 0.13%, while average temperature and average precipitation improved rice production by 0.72% and 0.01%, respectively, in the long run. Further results show that cultivated rice area, fertiliser consumption, and agricultural credit enhanced rice production by 2.26%, 0.05%, and 0.02%, respectively, in the long run. Unidirectional causality among cultivated areas, fertilisers, seeds, temperature, CO2 emissions, and rice production was confirmed. Additionally, impulse response and variance decomposition verified the substantial impacts of climate and technological factors on rice production and variations. This study empirically confirmed that the use of agricultural technology (i.e. fertiliser consumption) significantly enhanced rice production; therefore, this study suggests that the Nepalese government should expand subsidised fertilisers so as to increase rice production and improve the income of farmers. In addition, agricultural credit plays a vital role in enhancing rice production in Nepal; to cope with climate change, the study also suggests that there is a need to launch carbon/weather financing schemes through financial intuitions in the country.

Suggested Citation

  • Chandio, Abbas Ali & Jiang, Yuansheng & Ahmad, Fayyaz & Adhikari, Salina & Ain, Qurat Ul, 2021. "Assessing the impacts of climatic and technological factors on rice production: Empirical evidence from Nepal," Technology in Society, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:teinso:v:66:y:2021:i:c:s0160791x21000828
    DOI: 10.1016/j.techsoc.2021.101607
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X21000828
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2021.101607?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Khanal, Uttam & Wilson, Clevo & Hoang, Viet-Ngu & Lee, Boon, 2018. "Farmers' Adaptation to Climate Change, Its Determinants and Impacts on Rice Yield in Nepal," Ecological Economics, Elsevier, vol. 144(C), pages 139-147.
    2. Muhammad Shahbaz & Muhammad Shahbaz Shabbir & Muhammad Sabihuddin Butt, 2013. "Effect of financial development on agricultural growth in Pakistan," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 40(8), pages 707-728, June.
    3. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    4. Ruhul A. Salim & Nazrul Islam, 2010. "Exploring the impact of R&D and climate change on agricultural productivity growth: the case of Western Australia ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 561-582, October.
    5. Shakeel Ahmad & Muhammad Tariq & Touseef Hussain & Qasir Abbas & Hamidullah Elham & Iqbal Haider & Xiangmei Li, 2020. "Does Chinese FDI, Climate Change, and CO 2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    6. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    7. Mihaela Simionescu & Yuriy Bilan & Stanisław Gędek & Dalia Streimikiene, 2019. "The Effects of Greenhouse Gas Emissions on Cereal Production in the European Union," Sustainability, MDPI, vol. 11(12), pages 1-24, June.
    8. Kumar, Anjani & Takeshima, Hiroyuki & Thapa, Ganesh & Adhikari, Naveen & Saroj, Sunil & Karkee, Madhab & Joshi, P.K., 2020. "Adoption and diffusion of improved technologies and production practices in agriculture: Insights from a donor-led intervention in Nepal," Land Use Policy, Elsevier, vol. 95(C).
    9. Md. Abdur Rashid Sarker & Khorshed Alam & Jeff Gow, 2014. "Assessing the effects of climate change on rice yields: An econometric investigation using Bangladeshi panel data," Economic Analysis and Policy, Elsevier, vol. 44(4), pages 405-416.
    10. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-1580, November.
    11. Nelson, Gerald C. & Rosegrant, Mark W. & Koo, Jawoo & Robertson, Richard & Sulser, Timothy & Zhu, Tingju & Ringler, Claudia & Msangi, Siwa & Palazzo, Amanda & Batka, Miroslav & Magalhaes, Marilia & Va, 2009. "Climate change: Impact on agriculture and costs of adaptation," Food policy reports 21, International Food Policy Research Institute (IFPRI).
    12. Wolfram Schlenker & W. Michael Hanemann & Anthony C. Fisher, 2006. "The Impact of Global Warming on U.S. Agriculture: An Econometric Analysis of Optimal Growing Conditions," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 113-125, February.
    13. Prakash K. Karn, 2014. "The Impact of Climate Change on Rice Prduction in Nepal," Working Papers id:6201, eSocialSciences.
    14. Zakaria, Abraham & Azumah, Shaibu Baanni & Appiah-Twumasi, Mark & Dagunga, Gilbert, 2020. "Adoption of climate-smart agricultural practices among farm households in Ghana: The role of farmer participation in training programmes," Technology in Society, Elsevier, vol. 63(C).
    15. Jayatilleke S. Bandara & Yiyong Cai, 2014. "The impact of climate change on food crop productivity, food prices and food security in South Asia," Economic Analysis and Policy, Elsevier, vol. 44(4), pages 451-465.
    16. Veeshan Rayamajhee & Alok K. Bohara, 2019. "Do voluntary associations reduce hunger? An empirical exploration of the social capital- food security nexus among food impoverished households in western Nepal," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(2), pages 405-415, April.
    17. Prakash K. Karn, "undated". "The Impact of Climate Change on Rice Production in Nepal," Working papers 85, The South Asian Network for Development and Environmental Economics.
    18. Abbas Ali Chandio & Yuansheng Jiang & Abdul Rauf & Fayyaz Ahmad & Waqas Amin & Khurram Shehzad, 2020. "Assessment of Formal Credit and Climate Change Impact on Agricultural Production in Pakistan: A Time Series ARDL Modeling Approach," Sustainability, MDPI, vol. 12(13), pages 1-21, June.
    19. Osaretin Kayode Omoregie & Fredrick Ikpesu & Abraham Emmanuel Okpe, 2018. "Credit Supply and Rice Output in Nigeria: Empirical Insight from Vector Error Correction Model Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 8(5), pages 68-74.
    20. Sonia Afrin & Mohammed Ziaul Haider & Md. Sariful Islam, 2017. "Impact of financial inclusion on technical efficiency of paddy farmers in Bangladesh," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 77(4), pages 484-505, November.
    21. Yesuf, Mahmud & Di Falco, Salvatore & Deressa, Temesgen & Ringler, Claudia & Kohlin, Gunnar, 2008. "The impact of climate change and adaptation on food production in low-income countries: Evidence from the Nile Basin, Ethiopia [in Amharic]," Research briefs 15(11)AMH, International Food Policy Research Institute (IFPRI).
    22. Zhou, Li & Turvey, Calum G., 2014. "Climate change, adaptation and China's grain production," China Economic Review, Elsevier, vol. 28(C), pages 72-89.
    23. Yesuf, Mahmud & di Falco, Salvatore & Deressa, Temesgen & Ringler, Claudia & Kohlin, Gunnar, 2008. "The impact of climate change and adaptation on food production in low-income countries: Evidence from the Nile Basin, Ethiopia," IFPRI discussion papers 828, International Food Policy Research Institute (IFPRI).
    24. William R. Cline, 2007. "Global Warming and Agriculture: Impact Estimates by Country," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4037, April.
    25. -, 2009. "The economics of climate change," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38679, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    26. Nguyen Tuan Anh & Christopher Gan & Dao Le Trang Anh, 2020. "Does credit boost agricultural performance? Evidence from Vietnam," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 47(9), pages 1203-1221, August.
    27. Mahamane Maliki Amadou & Issa Sanogo, 2010. "Rice market integration and food security in Nepal: The role of cross-border trade with India," Post-Print halshs-00518371, HAL.
    28. Muhammad Imran Qureshi & Usama Awan & Zeeshan Arshad & Amran Md. Rasli & Khalid Zaman & Faisal Khan, 2016. "Dynamic linkages among energy consumption, air pollution, greenhouse gas emissions and agricultural production in Pakistan: sustainable agriculture key to policy success," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 367-381, October.
    29. Veeshan Rayamajhee & Alok K. Bohara & Virgil Henry Storr, 2020. "Ex-Post Coping Responses and Post-Disaster Resilience: a Case from the 2015 Nepal Earthquake," Economics of Disasters and Climate Change, Springer, vol. 4(3), pages 575-599, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abbas Ali Chandio & Waqar Akram & Uzma Bashir & Fayyaz Ahmad & Sultan Adeel & Yuansheng Jiang, 2023. "Sustainable maize production and climatic change in Nepal: robust role of climatic and non-climatic factors in the long-run and short-run," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1614-1644, February.
    2. Huaquan Zhang & Yashuang Tang & Abbas Ali Chandio & Ghulam Raza Sargani & Martinson Ankrah Twumasi, 2022. "Measuring the Effects of Climate Change on Wheat Production: Evidence from Northern China," IJERPH, MDPI, vol. 19(19), pages 1-16, September.
    3. Adam, Lukman & Jin, Jia & Khan, Anwar, 2022. "Does the Indonesian farmer empowerment policy enhance the professional farmer? Empirical evidence based on the difference-in-difference approach," Technology in Society, Elsevier, vol. 68(C).
    4. Jinglian Tian & Yongzhong Tian & Wenhao Wan & Chenxi Yuan & Kangning Liu & Yang Wang, 2024. "Research on the Temporal and Spatial Changes and Driving Forces of Rice Fields Based on the NDVI Difference Method," Agriculture, MDPI, vol. 14(7), pages 1-22, July.
    5. Abbas Ali Chandio & Yuansheng Jiang & Waqar Akram & Ilhan Ozturk & Abdul Rauf & Aamir Ali Mirani & Huaquan Zhang, 2023. "The impact of R&D investment on grain crops production in China: Analysing the role of agricultural credit and CO2 emissions," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 4120-4138, October.
    6. Abbas Ali Chandio & Yasir A. Nasereldin & Dao Le Trang Anh & Yashuang Tang & Ghulam Raza Sargani & Huaquan Zhang, 2022. "The Impact of Technological Progress and Climate Change on Food Crop Production: Evidence from Sichuan—China," IJERPH, MDPI, vol. 19(16), pages 1-18, August.
    7. Sanjeev Kumar & Ajay K. Singh, 2023. "Modeling the effects of climate change on agricultural productivity: evidence from Himachal Pradesh, India," Asia-Pacific Journal of Regional Science, Springer, vol. 7(2), pages 521-548, June.
    8. Aluwani Tagwi, 2022. "The Impacts of Climate Change, Carbon Dioxide Emissions (CO 2 ) and Renewable Energy Consumption on Agricultural Economic Growth in South Africa: ARDL Approach," Sustainability, MDPI, vol. 14(24), pages 1-25, December.
    9. Chandio, Abbas Ali & Ozdemir, Dicle & Gokmenoglu, Korhan K. & Usman, Muhammad & Jiang, Yuansheng, 2024. "Digital agriculture for sustainable development in China: The promise of computerization," Technology in Society, Elsevier, vol. 76(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abbas Ali Chandio & Waqar Akram & Uzma Bashir & Fayyaz Ahmad & Sultan Adeel & Yuansheng Jiang, 2023. "Sustainable maize production and climatic change in Nepal: robust role of climatic and non-climatic factors in the long-run and short-run," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1614-1644, February.
    2. Xincai Gao & Lin Ji & Abbas Ali Chandio & Amber Gul & Martinson Ankrah Twumasi & Fayyaz Ahmad, 2022. "Towards Sustainable Agriculture in China: Assessing the Robust Role of Green Public Investment," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    3. Abbas Ali, Chandio & Yuansheg, Jiang & Asad, Amin & Waqar, Akram & Ilhan, Ozturk & Avik, Sinha & Fayyaz, Ahmad, 2021. "Modeling the impact of climatic and non-climatic factors on cereal production: evidence from Indian agricultural sector," MPRA Paper 110065, University Library of Munich, Germany, revised 2021.
    4. Abbas Ali Chandio & Yuansheng Jiang & Waqar Akram & Ilhan Ozturk & Abdul Rauf & Aamir Ali Mirani & Huaquan Zhang, 2023. "The impact of R&D investment on grain crops production in China: Analysing the role of agricultural credit and CO2 emissions," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 4120-4138, October.
    5. Zeenatul Islam & Mohammad Alauddin & Md. Abdur Rashid Sarker, 2017. "Farmers’ perception on climate change-driven rice production loss in drought-prone and groundwater-depleted areas of Bangladesh: An ordered probit analysis," Discussion Papers Series 579, School of Economics, University of Queensland, Australia.
    6. Abbas Ali Chandio & Fayyaz Ahmad & Ghulam Raza Sargani & Asad Amin & Martinson Ankrah Twumasi, 2022. "Analyzing the effective role of formal credit and technological development for rice cultivation," Asia-Pacific Journal of Regional Science, Springer, vol. 6(2), pages 683-711, June.
    7. Mohammad Rondhi & Ahmad Fatikhul Khasan & Yasuhiro Mori & Takumi Kondo, 2019. "Assessing the Role of the Perceived Impact of Climate Change on National Adaptation Policy: The Case of Rice Farming in Indonesia," Land, MDPI, vol. 8(5), pages 1-21, May.
    8. Khanal, Uttam & Wilson, Clevo & Rahman, Sanzidur & Lee, Boon & Hoang, Vincent, 2020. "Smallholder farmers’ adaptation to climate change and its potential contribution to UN’s sustainable development goals of zero hunger and no poverty," MPRA Paper 106917, University Library of Munich, Germany, revised 07 Sep 2020.
    9. Shahbaz, Muhammad & Nawaz, Kishwar & Arouri, Mohamed & Teulon, Frédéric & Uddin, Gazi Salah, 2013. "On the validity of the Keynesian Absolute Income hypothesis in Pakistan: An ARDL bounds testing approach," Economic Modelling, Elsevier, vol. 35(C), pages 290-296.
    10. Shahbaz, Muhammad & Nawaz, Kishwer & AROURI, Mohamed El Hedi & Teulon, Frédéric, 2013. "Does The Keynesian Absolute Income Hypothesis Exist in Pakistan?," MPRA Paper 47923, University Library of Munich, Germany, revised 01 Jul 2013.
    11. repec:ipg:wpaper:2014-411 is not listed on IDEAS
    12. Uttam Khanal & Clevo Wilson & Viet-Ngu Hoang & Boon Lee, 2019. "Impact of community-based organizations on climate change adaptation in agriculture: empirical evidence from Nepal," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(2), pages 621-635, April.
    13. Roubaud, David & Shahbaz, Muhammad, 2018. "Financial Development, Economic Growth, and Electricity Demand: A Sector Analysis of an Emerging Economy," MPRA Paper 87212, University Library of Munich, Germany, revised 06 Jun 2018.
    14. Zheng, Li & Abbasi, Kashif Raza & Salem, Sultan & Irfan, Muhammad & Alvarado, Rafael & Lv, Kangjuan, 2022. "How technological innovation and institutional quality affect sectoral energy consumption in Pakistan? Fresh policy insights from novel econometric approach," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    15. Liu, Yaping & Sadiq, Farah & Ali, Wajahat & Kumail, Tafazal, 2022. "Does tourism development, energy consumption, trade openness and economic growth matters for ecological footprint: Testing the Environmental Kuznets Curve and pollution haven hypothesis for Pakistan," Energy, Elsevier, vol. 245(C).
    16. Brittle, Shane, 2009. "Ricardian Equivalence and the Efficacy of Fiscal Policy in Australia," Economics Working Papers wp09-10, School of Economics, University of Wollongong, NSW, Australia.
    17. Ashis Kumar Pradhan & Gourishankar S Hiremath, 2020. "Do external commercial borrowings and financial development affect exports?," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1796269-179, January.
    18. Bashiri Behmiri, Niaz & Pires Manso, José R., 2012. "Does Portuguese economy support crude oil conservation hypothesis?," Energy Policy, Elsevier, vol. 45(C), pages 628-634.
    19. Ekaterini Panopoulou, 2005. "A Resolution of the Fisher Effect Puzzle: A Comparison of Estimators," The Institute for International Integration Studies Discussion Paper Series iiisdp067, IIIS.
    20. Guan, Jialin & Kirikkaleli, Dervis & Bibi, Ayesha & Zhang, Weike, 2020. "Natural resources rents nexus with financial development in the presence of globalization: Is the “resource curse” exist or myth?," Resources Policy, Elsevier, vol. 66(C).
    21. Amjad Ali & Marc Audi & Chan Bibi & Yannick Roussel, 2021. "The Impact of Gender Inequality and Environmental Degradation on Human Well-being in the Case of Pakistan: A Time Series Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 11(2), pages 92-99.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:66:y:2021:i:c:s0160791x21000828. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.