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

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 pu...

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Main Authors: Nihal Ahmed, Zeeshan Hamid, Farhan Mahboob, Khalil Ur Rehman, Muhammad Sibt e Ali, Piotr Senkus, Aneta Wysokińska-Senkus, Paweł Siemiński, Adam Skrzypek
Format: Article
Language:English
Published: MDPI AG 2022-08-01
Series:Agriculture
Subjects:
Online Access:https://www.mdpi.com/2077-0472/12/9/1320
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author Nihal Ahmed
Zeeshan Hamid
Farhan Mahboob
Khalil Ur Rehman
Muhammad Sibt e Ali
Piotr Senkus
Aneta Wysokińska-Senkus
Paweł Siemiński
Adam Skrzypek
author_facet Nihal Ahmed
Zeeshan Hamid
Farhan Mahboob
Khalil Ur Rehman
Muhammad Sibt e Ali
Piotr Senkus
Aneta Wysokińska-Senkus
Paweł Siemiński
Adam Skrzypek
author_sort Nihal Ahmed
collection DOAJ
description 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.
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spelling doaj.art-2860054fac984ce393a0ec701ba0a23e2023-11-23T14:32:00ZengMDPI AGAgriculture2077-04722022-08-01129132010.3390/agriculture12091320Causal Linkage among Agricultural Insurance, Air Pollution, and Agricultural Green Total Factor Productivity in United States: Pairwise Granger Causality ApproachNihal Ahmed0Zeeshan Hamid1Farhan Mahboob2Khalil Ur Rehman3Muhammad Sibt e Ali4Piotr Senkus5Aneta Wysokińska-Senkus6Paweł Siemiński7Adam Skrzypek8College of Economics & Management, Northwest Agricultural & Forestry University, Xianyang 712100, ChinaDepartment of Management Sciences, Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology (SZABIST), Islamabad 44791, PakistanDepartment of Finance and Economics, Mohammad Ali Jinnah University, Karachi 75100, PakistanInstitute of Business Administration, Faculty of Administrative and Management Sciences, Khwaja Fareed University of Engineering and Information Technology, Rahim Yar Khan 64200, PakistanSchool of Business, Zhengzhou University, Zhengzhou 450052, ChinaFaculty of Social Sciences, Siedlce University of Natural Sciences and Humanities, 08-110 Siedlce, PolandFaculty of Management and Command, War Studies University, 00-001 Warsaw, PolandDepartment of Economics and Economic Polity in Agribusiness, Poznań University of Life Sciences, Wojska Polskiego 28, 60-637 Poznań, PolandInstitute of Journalism and Management, Faculty of Social Sciences, The John Paul II Catholic University of Lublin, 20-950 Lublin, PolandAgricultural 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.https://www.mdpi.com/2077-0472/12/9/1320agricultural green total factor productivityagricultural insuranceAGTFPair pollutionpanel auto-regressive distributed lags methodUnited States
spellingShingle Nihal Ahmed
Zeeshan Hamid
Farhan Mahboob
Khalil Ur Rehman
Muhammad Sibt e Ali
Piotr Senkus
Aneta Wysokińska-Senkus
Paweł Siemiński
Adam Skrzypek
Causal Linkage among Agricultural Insurance, Air Pollution, and Agricultural Green Total Factor Productivity in United States: Pairwise Granger Causality Approach
Agriculture
agricultural green total factor productivity
agricultural insurance
AGTFP
air pollution
panel auto-regressive distributed lags method
United States
title Causal Linkage among Agricultural Insurance, Air Pollution, and Agricultural Green Total Factor Productivity in United States: Pairwise Granger Causality Approach
title_full Causal Linkage among Agricultural Insurance, Air Pollution, and Agricultural Green Total Factor Productivity in United States: Pairwise Granger Causality Approach
title_fullStr Causal Linkage among Agricultural Insurance, Air Pollution, and Agricultural Green Total Factor Productivity in United States: Pairwise Granger Causality Approach
title_full_unstemmed Causal Linkage among Agricultural Insurance, Air Pollution, and Agricultural Green Total Factor Productivity in United States: Pairwise Granger Causality Approach
title_short Causal Linkage among Agricultural Insurance, Air Pollution, and Agricultural Green Total Factor Productivity in United States: Pairwise Granger Causality Approach
title_sort causal linkage among agricultural insurance air pollution and agricultural green total factor productivity in united states pairwise granger causality approach
topic agricultural green total factor productivity
agricultural insurance
AGTFP
air pollution
panel auto-regressive distributed lags method
United States
url https://www.mdpi.com/2077-0472/12/9/1320
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