Climate Change and Agricultural Productivity: A System GMM Approach using District-level Data

This study investigates the impact of climate change on rice productivity in Jharkhand, India, with a focus on temperature fluctuations and rainfall patterns. It highlights the risks associated with maximum temperatures during critical growth stages for rice, while minimum temperatures can benefit growth. The study also underscores the challenges posed by water scarcity, as agriculture in Jharkhand heavily relies on rainfed systems.

The current study employs secondary district-level data collected from different sources and applies the system GMM approach for empirical estimation.

The findings indicate that both temperature and rainfall have a significant influence on rice yields. The results suggest that policymakers should account for district-level heterogeneity when designing climate adaptation strategies. Enhancing irrigation coverage and efficiency, as well as converting fallow land into arable land, are identified as key measures to mitigate climate-related risks and improve farm income.