Causal Linkage among Agricultural Insurance, Air Pollution, and Agricultural Green Total Factor Productivity in United States: Pairwise Granger Causality Approach

Nihal Ahmed, Zeeshan Hamid, Farhan Mahboob, Khalil Ur Rehman, Muhammad Ali, Piotr Senkus, Aneta Wysokińska-Senkus, Paweł Siemiński and Adam Skrzypek
Additional contact information
Nihal Ahmed: College of Economics & Management, Northwest Agricultural & Forestry University, Xianyang 712100, China
Zeeshan Hamid: Department of Management Sciences, Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology (SZABIST), Islamabad 44791, Pakistan
Farhan Mahboob: Department of Finance and Economics, Mohammad Ali Jinnah University, Karachi 75100, Pakistan
Khalil Ur Rehman: Institute of Business Administration, Faculty of Administrative and Management Sciences, Khwaja Fareed University of Engineering and Information Technology, Rahim Yar Khan 64200, Pakistan
Aneta Wysokińska-Senkus: Faculty of Management and Command, War Studies University, 00-001 Warsaw, Poland
Paweł Siemiński: Department of Economics and Economic Polity in Agribusiness, Poznań University of Life Sciences, Wojska Polskiego 28, 60-637 Poznań, Poland
Adam Skrzypek: Institute of Journalism and Management, Faculty of Social Sciences, The John Paul II Catholic University of Lublin, 20-950 Lublin, Poland

Agriculture, 2022, vol. 12, issue 9, 1-17

Abstract: Agricultural insurance and green agriculture are strongly related. Agricultural insurance not only motivates farmers to adopt environmentally friendly production technology and enhances the effectiveness of production, but it also accomplishes the goal of lowering the number of chemicals that are put into the environment. This article investigates the dynamic relationship between agricultural insurance, air pollution, and agricultural green total factor productivity. To complete the aim, the authors used the panel auto-regressive distributed lags method (PMG method) and panel data from 50 states of the United States between 2005 and 2019. The empirical findings demonstrate a considerable co-integration and a cross-sectional reliance between agricultural insurance, air pollution, and agricultural green total factor production. Expanding agricultural insurance may boost agricultural green whole factor output but also exacerbate air pollution. However, significant air pollution does not increase agricultural production’s green total factor productivity. The panel Granger causality test shows a one-way causal relationship between agricultural insurance, green total factor productivity, and air pollution. A one-way causal relationship exists between air pollution and agricultural green total factor productivity. The author concluded that improving agricultural insurance coverage or cutting down on air pollution will boost agricultural green total factor output. These findings have long-term policy and management repercussions, particularly for those involved in agriculture policy and environmental management.

Keywords: agricultural green total factor productivity; agricultural insurance; AGTFP; air pollution; panel auto-regressive distributed lags method; United States; PM2.5 (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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