Does financial development mitigate the effects of climate variability on rice cultivation? Empirical evidence from agrarian economy

Examining the impacts of climate change and political instability on rice production: empirical evidence from Nigeria

The Nigerian government is committed to sustaining rice production to meet national demand. Nevertheless, political tension and climate-induced stressors remain crucial constraints in achieving policy targets. This study examines whether climate change and political instability significantly threaten rice production in Nigeria. First, we employed nonparametric methods to estimate the country's rainfall and temperature trends between 1980Q1 and 2015Q4. Second, we employed the autoregressive distributed lag (ARDL) technique to examine the effects of climate change and political instability on rice production. The results show that while temperature has an increasing pattern, rainfall exhibits no significant trend. The findings from the ARDL estimate reveal that rice production responds negatively to temperature changes but is less sensitive to changes in rainfall. In addition, political instability adversely affects rice production in Nigeria. We argue that Nigeria's slow growth in rice production can be traced back to the impact of climate change and political tension in rice farming areas. As a result, reducing the overall degree of conflict to ensure political stability is critical to boosting the country's self-sufficiency in rice production. We also recommend that farmers be supported and trained to adopt improved rice varieties less prone to extreme climate events while supporting them with irrigation facilities to facilitate rice production.

The role of climatic changes and financial development to the ASEAN agricultural output: a novel long-run evidence for sustainable production

This paper examines the impact of climate variables and financial development on agricultural value-added and cereal production in selected Southeast Asian economies from 1970 to 2016. The current research applies second-generation advanced techniques to accomplish robust and reliable outcomes. The findings from the FM-OLS estimation disclose that climatic factors, for instance, CO2e and average temperature, impact both agricultural value-added and cereal production negatively, and financial development has an inverted U-shaped influence on both agricultural value-added and cereal production. Meanwhile, other important factors, including cropped area, income level, and rural labor force, significantly improve agricultural value-added and cereal production. Furthermore, the FM-OLS estimator's D-H panel causality test outcomes are reliable. The findings of our study reveal that both the short- and long-run risks of climatic changes to the agricultural sector pose a large-scale threat to food security in Southeast Asian economies. As a result, a robust and stable financial development in terms of governance of climate change finance in the agriculture sector must be achieved to enhance farmers' ability to adapt to current and future climate change adverse impacts.

The Impact of Technological Progress and Climate Change on Food Crop Production: Evidence from Sichuan-China

Agriculture is an integral sector in China mandated to feed over 1.3 billion of its people and provide essential inputs for many industries. Sichuan, a central grain-producing province in Southwest China, is a significant supplier of cereals in the country. Yet, it is likely to be threatened by yield damages induced by climate change. Therefore, this study examines the effects of technological progress (via fertilizers usage and mechanization) and climatic changes (via temperature and precipitation) on the productivity of main food crops, such as rice (Oryza sativa), wheat (Triticum aestivum), and maize (Zea mays) in Sichuan province. We employ the generalized method of moments (GMM) model to analyze Sichuan provincial data from 1980 to 2018. Our findings show a positive nexus between fertilizers use and yields of main food crops. Only rice and maize yields are significantly improved by mechanization. Increased average temperature reduces rice and wheat yields significantly. Rainfall is unlikely to have a significant impact on agricultural production. The study suggests that the Chinese government should consider revising its strategies and policies to reduce the impact of climate change on food crop production and increase farmers' adaptive ability.