Assessing the impact of green finance on cereal crops production: A mediating role of climate change in major Asian crops producing countries

Abstract

Climate change poses significant threats to agriculture sector in major Asian crops producing countries which resultantly, compromising global food security and economic growth. Therefore, this research paper investigates impact of green finance (GF) on the agriculture sector from 2015 to 2023 using causal mediation analysis approach. We examine the relationship among Green Finance using green bond financing (GBF), climate change variable, greenhouse gases emissions as a mediator, and for agricultural productivity taking cereal crop production as a proxy variable. The findings reveal a positive and significant impact of GBF while climate change negatively affects cereal crops production. The study also finds that GBF has potential to mitigate the adverse impacts of climate change on cereal crops production. The findings underscore the urgent need for climate adaptation and resilience measures to safeguard global food security and economic stability of these Asian countries. The study contributes to the existing literature by providing empirical evidence on the effectiveness of GBF in supporting climate-resilient agricultural practices.