Unveiling the interplay between climate variability and economic growth in India: an auto regressive distributed lag (ARDL) framework

This study offers a comprehensive analysis of the impact of extreme weather events, intensified by climate change, on India’s real Gross National Product. Focusing on hydro-geological factors crucial for India’s Gross National Product, the Auto Regressive Distributed Lag model reveals significant in...

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Main Authors: K. Nirmal Ravi Kumar, K. Gurava Reddy, M. Jagan Mohan Reddy, Adinan Bahahudeen Shafiwu
Format: Article
Language:English
Published: Taylor & Francis Group 2024-12-01
Series:Cogent Social Sciences
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311886.2024.2352507
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author K. Nirmal Ravi Kumar
K. Gurava Reddy
M. Jagan Mohan Reddy
Adinan Bahahudeen Shafiwu
author_facet K. Nirmal Ravi Kumar
K. Gurava Reddy
M. Jagan Mohan Reddy
Adinan Bahahudeen Shafiwu
author_sort K. Nirmal Ravi Kumar
collection DOAJ
description This study offers a comprehensive analysis of the impact of extreme weather events, intensified by climate change, on India’s real Gross National Product. Focusing on hydro-geological factors crucial for India’s Gross National Product, the Auto Regressive Distributed Lag model reveals significant insights. Notably, the study reveals a significant positive correlation between the lagged real GNP (GNP(−1)) and current real GNP, emphasizing the persistence of economic growth trends. Gross Fixed Capital Formation emerges as a key determinant, with a 0.50% increase in economic growth corresponding to a 1% rise in GFCF. Forest land and rainfall exhibited substantial positive associations, contributing to a noteworthy 1.674 and 0.099% with economic growth. Conversely, CO2 emissions, rising temperatures (both Maximum Temperature and Minimum Temperature) exerted a significant negative influence on real GNP, emphasizing the need for sustainable emission reduction strategies. ARDL Bounds Test, revealed existence of a long-run relationship between real GNP and the selected variables. An ECM-Long Run Test underscores the lasting impact, with a 32.4% adjustment towards long-run equilibrium. The study establishes a bi-directional causality between real Gross National Product and carbon dioxide emissions, emphasizing the interconnectedness of economic growth and emissions. This underscores the urgency for addressing climate change alongside sustainable economic development. The findings serve as a crucial guide for evidence-based policymaking, urging proactive strategies to navigate climate challenges and ensure a prosperous, sustainable future for India. The findings contribute to the existing literature, emphasizing the multifaceted nature of factors shaping India’s sustained economic development.
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spelling doaj-art-d3375c1bfe9344d4afdc83a13374dbce2025-08-20T03:44:14ZengTaylor & Francis GroupCogent Social Sciences2331-18862024-12-0110110.1080/23311886.2024.2352507Unveiling the interplay between climate variability and economic growth in India: an auto regressive distributed lag (ARDL) frameworkK. Nirmal Ravi Kumar0K. Gurava Reddy1M. Jagan Mohan Reddy2Adinan Bahahudeen Shafiwu3(Agricultural Economics), Agricultural College, Bapatla, Acharya NG Ranga Agricultural University (ANGRAU), Government of Andhra Pradesh, Bapatla, IndiaAcharya NG Ranga Agricultural University (ANGRAU), Government of Andhra Pradesh, Hyderabad, IndiaExtension Education Institute, Prof. Jayashankar Telangana State Agricultural University (PJTSAU), Government of Telangana, Hyderabad, IndiaDepartment of Agricultural and Food Economics, University for Development Studies, Tamale, GhanaThis study offers a comprehensive analysis of the impact of extreme weather events, intensified by climate change, on India’s real Gross National Product. Focusing on hydro-geological factors crucial for India’s Gross National Product, the Auto Regressive Distributed Lag model reveals significant insights. Notably, the study reveals a significant positive correlation between the lagged real GNP (GNP(−1)) and current real GNP, emphasizing the persistence of economic growth trends. Gross Fixed Capital Formation emerges as a key determinant, with a 0.50% increase in economic growth corresponding to a 1% rise in GFCF. Forest land and rainfall exhibited substantial positive associations, contributing to a noteworthy 1.674 and 0.099% with economic growth. Conversely, CO2 emissions, rising temperatures (both Maximum Temperature and Minimum Temperature) exerted a significant negative influence on real GNP, emphasizing the need for sustainable emission reduction strategies. ARDL Bounds Test, revealed existence of a long-run relationship between real GNP and the selected variables. An ECM-Long Run Test underscores the lasting impact, with a 32.4% adjustment towards long-run equilibrium. The study establishes a bi-directional causality between real Gross National Product and carbon dioxide emissions, emphasizing the interconnectedness of economic growth and emissions. This underscores the urgency for addressing climate change alongside sustainable economic development. The findings serve as a crucial guide for evidence-based policymaking, urging proactive strategies to navigate climate challenges and ensure a prosperous, sustainable future for India. The findings contribute to the existing literature, emphasizing the multifaceted nature of factors shaping India’s sustained economic development.https://www.tandfonline.com/doi/10.1080/23311886.2024.2352507Climate changecarbon dioxide emissionsgross fixed capital formationgross national productauto regressive distributed lagO1
spellingShingle K. Nirmal Ravi Kumar
K. Gurava Reddy
M. Jagan Mohan Reddy
Adinan Bahahudeen Shafiwu
Unveiling the interplay between climate variability and economic growth in India: an auto regressive distributed lag (ARDL) framework
Cogent Social Sciences
Climate change
carbon dioxide emissions
gross fixed capital formation
gross national product
auto regressive distributed lag
O1
title Unveiling the interplay between climate variability and economic growth in India: an auto regressive distributed lag (ARDL) framework
title_full Unveiling the interplay between climate variability and economic growth in India: an auto regressive distributed lag (ARDL) framework
title_fullStr Unveiling the interplay between climate variability and economic growth in India: an auto regressive distributed lag (ARDL) framework
title_full_unstemmed Unveiling the interplay between climate variability and economic growth in India: an auto regressive distributed lag (ARDL) framework
title_short Unveiling the interplay between climate variability and economic growth in India: an auto regressive distributed lag (ARDL) framework
title_sort unveiling the interplay between climate variability and economic growth in india an auto regressive distributed lag ardl framework
topic Climate change
carbon dioxide emissions
gross fixed capital formation
gross national product
auto regressive distributed lag
O1
url https://www.tandfonline.com/doi/10.1080/23311886.2024.2352507
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