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Does Climate Change Impact Output? An Empirical Evidence From Asia Pacific Countries

Author

Listed:
  • Chinmaya Behera

    (Goa Institute of Management, Goa, India)

  • Ranjan Kumar Mohanty

    (XIM University, Bhubaneswar, Odisha, India)

  • Biswashree Tanaya Priyadarsini

    (BITS Pilani, K K Birla Goa Camus, India)

  • Debasis Patnaik

    (BITS Pilani, K K Birla Goa Camus, India)

Abstract

The study examines the nexus between output, Gross Domestic Product (GDP), renewable energy, trade openness, carbon emission, and foreign direct investment in Asia Pacific countries Using the autoregressive distributed lag model and yearly data from 1990 to 2021, we find (a) a long-run relationship among the variables under consideration, (b) that GDP positively impacts output in most countries, (c) that CO2 and renewable energy display varied effects, and (d) in the short run, GDP and trade openness generally exert a positive influence, but GDP demonstrates a mix of positive and negative impacts. Policymakers need to provide stable policies for environmental variables for sustainable growth.

Suggested Citation

  • Chinmaya Behera & Ranjan Kumar Mohanty & Biswashree Tanaya Priyadarsini & Debasis Patnaik, 2025. "Does Climate Change Impact Output? An Empirical Evidence From Asia Pacific Countries," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 28(Spesial I), pages 123-136, February.
    • Handle: RePEc:idn:journl:v:28:y:2025:i:sph:p:123-136
    DOI: https://doi.org/10.59091/2460-9196.2372
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    More about this item

    Keywords

    CO2; Renewable energy; Trade openness; FDI; GDP;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • B27 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - International Trade and Finance
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment

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