Economic Impact of Climate Change on Agriculture: A Case of Vietnam

Abstract

Food security, agricultural exports, and livelihoods have improved by rapid agricultural expansion in the previous 30 years. In the coming decades, warming trends and human pressures are expected to exacerbate the impact of climate change on agriculture. A time series of data from 1990 to 2020 examines the economic effects of climate change on Vietnamese farm production. After using the Augmented Dickey-Fuller and Philips-Perron unit root tests, the ARDL bounds testing technique estimates short and long-run cointegration. They found long-run cointegration between the variables. A positive influence of CO2 emissions is identified, although negative impacts of average temperature and rainfall are found. But only in the short term can energy consumption benefit agriculture. Non-climatic factors like crop production and fertiliser consumption have beneficial short- and long-term impacts on agriculture production and yield. Juselius Jhansen As well as proving long-term cointegration between variables. The report advises the Vietnamese government to create and implement many adaptation programmes to preserve the agriculture industry from climate change.