The effect of cereal production, cereal harvested area, and cereal yield, and forest on economic growth and environmental performance in Nepal

Kalpana Regmi (), Jiajun Qiao (), Jamal Hussain () and Lochan Kumar Batala ()
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Kalpana Regmi: Henan University
Jiajun Qiao: Henan University
Jamal Hussain: Karakoram International University
Lochan Kumar Batala: Henan University School of Economics

Economia Politica: Journal of Analytical and Institutional Economics, 2022, vol. 39, issue 3, No 2, 739-762

Abstract: Abstract The study intends to estimate the relationship between forest, renewable energy, and agricultural growth based on three heterogeneous indicators (total cereal production, total cereal harvested area, and total cereal yield) on economic growth and environment performance of Nepal over 1990–2018. The analysis considered potential structural breaks based on available long time-series data and calculated the cointegration relationship between selected variables. The results supported the existence of cointegration in the presence of structural breaks. Similarly, the autoregressive distributed lag approach shows that forests, renewable energy, and urbanization are key factors in improving Nepal's environmental quality. The findings also suggest that forest resources themselves influence economic growth and provide evidence of the resources curse. Renewable energy, agricultural development, and urbanization are factors that help boost the country's economic growth. Consequently, the results also support the existence of the traditional environmental Kuznets curve by controlling for the effects of heterogeneous indicators of agricultural growth. Based on the findings, the study has developed some policies that may be useful for the theory and practice of Nepalese policymakers.

Keywords: Agriculture growth; CO2 emissions; Forest resources; ARDL; Nepal (search for similar items in EconPapers)
JEL-codes: O13 Q1 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s40888-022-00278-4

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