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The effect of cereal production, cereal harvested area, and cereal yield, and forest on economic growth and environmental performance in Nepal

Author

Listed:
  • Kalpana Regmi

    (Henan University)

  • Jiajun Qiao

    (Henan University)

  • Jamal Hussain

    (Karakoram International University)

  • Lochan Kumar Batala

    (Henan University School of Economics)

Abstract

The study intends to estimate the relationship between forest, renewable energy, and agricultural growth based on three heterogeneous indicators (total cereal production, total cereal harvested area, and total cereal yield) on economic growth and environment performance of Nepal over 1990–2018. The analysis considered potential structural breaks based on available long time-series data and calculated the cointegration relationship between selected variables. The results supported the existence of cointegration in the presence of structural breaks. Similarly, the autoregressive distributed lag approach shows that forests, renewable energy, and urbanization are key factors in improving Nepal's environmental quality. The findings also suggest that forest resources themselves influence economic growth and provide evidence of the resources curse. Renewable energy, agricultural development, and urbanization are factors that help boost the country's economic growth. Consequently, the results also support the existence of the traditional environmental Kuznets curve by controlling for the effects of heterogeneous indicators of agricultural growth. Based on the findings, the study has developed some policies that may be useful for the theory and practice of Nepalese policymakers.

Suggested Citation

  • Kalpana Regmi & Jiajun Qiao & Jamal Hussain & Lochan Kumar Batala, 2022. "The effect of cereal production, cereal harvested area, and cereal yield, and forest on economic growth and environmental performance in Nepal," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(3), pages 739-762, October.
    • Handle: RePEc:spr:epolit:v:39:y:2022:i:3:d:10.1007_s40888-022-00278-4
    DOI: 10.1007/s40888-022-00278-4
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    More about this item

    Keywords

    Agriculture growth; CO2 emissions; Forest resources; ARDL; Nepal;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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