Climate change and agriculture nexus in Bangladesh: Evidence from ARDL and ECM techniques

Abstract

The erratic weather puts farming households of Bangladesh at high production risk with significant consequences on food production, income, and livelihood. This study attempts to find the effect of various climate change indicators on agriculture in Bangladesh over the period 1980–2014. The study used the ARDL bounds testing approach to assess the long-run associations and the Granger causality test to determine the causal relationships between the regressors and dependent variables. The outcomes revealed that the first lag of agricultural value-added, second lag of carbon emissions, and average rainfall have a positive impact while the first lag of carbon has negative and significant impacts on agricultural production in the long run; in the short run-past realizations of carbon emission have a negative and significant impact on agricultural value-added. Additionally, the results show a unidirectional causality from carbon emission to agricultural output, agricultural output to average rainfall, and agricultural output to energy consumption. The study fills the gap in the climate change literature by applying the ARDL method to establish the nexus between climate change and agricultural output in Bangladesh.