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Impact of environmental degradation on agricultural efficiency in India: evidence from robust econometric models

Author

Listed:
  • Bushra Praveen

    (Indian Institute of Technology Indore)

  • Pushp Kumar

    (Akal University
    Indian Institute of Technology Bhubaneswar)

  • Imran Ali Baig

    (Aligarh Muslim University)

  • Mandeep Bhardwaj

    (Lovely Professional University)

  • Kanak Singh

    (Indian Institute of Technology Indore)

  • Arvind Kumar Yadav

    (Akal University)

Abstract

Using annual time-series data from 1970 to 2016, this study attempts to examine the effects of environmental degradation on agricultural efficiency in India. Autoregressive distributed lag (ARDL), fully modified OLS (FMOLS) models are used to explore the long-run influence of environmental degradation and other control variables such as labor force, metabolic energy, fertilizer usage, and farm machinery on agricultural efficiency. Also, dynamic OLS (DOLS) and canonical cointegration regression (CCR) methods are used to validate the robustness of the estimated ARDL and FMOLS results. The Granger causality approach is used to examine causation among variables. According to ARDL and FMOLS estimates, fertiliser use, farm machinery, and metabolic energy improve India's agricultural efficiency. Agricultural methane emissions, on the other hand, reduce agricultural production. Furthermore, the DOLS and CCR approaches validate the estimated ARDL and FMOLS outcomes, indicating that the results are robust and consistent. The study suggest that the government should modernize agricultural research and seed systems and market and input diversification to help farmers.

Suggested Citation

  • Bushra Praveen & Pushp Kumar & Imran Ali Baig & Mandeep Bhardwaj & Kanak Singh & Arvind Kumar Yadav, 2022. "Impact of environmental degradation on agricultural efficiency in India: evidence from robust econometric models," Journal of Bioeconomics, Springer, vol. 24(3), pages 203-222, October.
    • Handle: RePEc:kap:jbioec:v:24:y:2022:i:3:d:10.1007_s10818-022-09327-1
    DOI: 10.1007/s10818-022-09327-1
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    References listed on IDEAS

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    1. Nicoleta Mihaela Doran & Roxana Maria Bădîrcea & Marius Dalian Doran, 2022. "Financing the Agri-Environmental Policy: Consequences on the Economic Growth and Environmental Quality in Romania," IJERPH, MDPI, vol. 19(21), pages 1-15, October.
    2. Ishfaq Hamid & Mohammed Ahmar Uddin & Iqbal Thonse Hawaldar & Md Shabbir Alam & D. P. Priyadarshi Joshi & Pabitra Kumar Jena, 2023. "Do Better Institutional Arrangements Lead to Environmental Sustainability: Evidence from India," Sustainability, MDPI, vol. 15(3), pages 1-19, January.

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