Impact of Coal Rent, Carbon Emissions, Precipitation and Urbanization on Pakistan’s Food Export Performance

Abstract

This study examines the impact of climate change on food exports in Pakistan by employing Johansen cointegration analysis to investigate both long-run and short-run relationships. The study considered urban population, precipitation, coal rent, and carbon emission as four major factors affecting climate change. The findings reveal that coal rents, a measure of the economic benefits of coal mining and use, reduce food exports in the long run. Therefore, the study suggests that as rents affect agriculture, further coal production could harm the environment and affect agriculture that can meet export demand. Similarly, high carbon levels contribute to climate change that can affect agriculture. The results indicate that rapid urbanization increases the pressure on arable land, which can reduce the amount of land available for agriculture and affect the food supply. Further, the study examines that precipitation demonstrates a positive association with food export in the long run, while all other variables display a negative relationship. Overall, this study highlights the crucial need to limit climate change and adopt sustainable agricultural practices to address food export challenges in Pakistan.