Impact of Climate Change on Rice and Wheat Yield in Punjab State of India: A District-Level Analysis

Abstract The present study aims to examine the impact of climate change on wheat and rice yield of the Punjab state of India. Using district-level panel data from 1981 to 2017, the study employs fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS), and pooed mean group (PMG) approaches. The Pedroni cointegration has established a long-run relationship of climate variables with rice and wheat crops. The results of FMOLS and DOLS show that minimum temperature has a positive effect on both wheat and rice, while maximum temperature is found to be negatively contributing to both the crops. Rainfall has a significant adverse effect on wheat yield. Seasonal rainfall has been detrimental to wheat and rice yield in the study period, indicating that excess rainfall proved counterproductive. Pooled mean group (PMG) model confirms the robustness of the results obtained by FMOLS and DOLS techniques. Moreover, Dumitrescu-Hurlin causality test has revealed a unidirectional causality running from minimum temperature, rainfall & maximum temperature to rice and wheat yield. The findings of the study suggest that the government should invest in developing stress-tolerant varieties of wheat and rice, managing crop residuals to curb further environmental effect and sustain natural resources for ensuring food security.