Author
Listed:
- Amina Hamdouni
(Department of Finance, College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11564, Saudi Arabia)
Abstract
This study investigates the dynamic and causal effects of climate stress and Artificial Intelligence-enabled agricultural monitoring on cultivated land quality, productivity, and sustainability in Saudi Arabia. Using a balanced panel of region–crop observations covering 13 administrative regions and six major crops over the period 2010–2024, the analysis integrates high-resolution climate variables with remote sensing-based indicators, including the Normalized Difference Vegetation Index, Enhanced Vegetation Index, Net Primary Productivity, Water-Use Efficiency, and crop water productivity. A comprehensive econometric framework combining the System Generalized Method of Moments, Difference-in-Differences, and event-study approaches is employed to address persistence, endogeneity, and causal identification. The results show that water availability—captured by soil moisture and precipitation—significantly enhances cultivated land outcomes (coefficients ≈ 0.05–0.11), while heat stress and wind speed exert strong negative effects (coefficients ≈ −0.04 to −0.12), highlighting the vulnerability of arid agricultural systems. Artificial Intelligence-enabled monitoring and smart irrigation adoption consistently improve land quality and productivity, with the largest gains observed in water-use efficiency and crop water productivity. Artificial Intelligence adoption increases water-use efficiency and crop water productivity by approximately 8–10%, while heat stress reduces vegetation indicators by about 9–12%. Event-study evidence confirms that these effects emerge after adoption and persist over time, supporting a causal interpretation. Overall, the findings demonstrate that AI technologies mitigate climate stress primarily through improved water management and adaptive decision-making. The study provides policy-relevant insights aligned with Saudi Vision 2030, emphasizing digital agriculture as a key instrument for sustainable cultivated land governance, climate adaptation, and food security in water-scarce environments.
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