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The effect of climate patterns on rice productivity in Pakistan: an application


of Driscoll and Kraay estimator

Article in Environmental Science and Pollution Research · July 2022


DOI: 10.1007/s11356-022-19624-x

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Environmental Science and Pollution Research
https://doi.org/10.1007/s11356-022-19624-x

RESEARCH ARTICLE

The effect of climate patterns on rice productivity in Pakistan:


an application of Driscoll and Kraay estimator
Faheem Ur Rehman1,2 · Ejaz Ahmad2,3

Received: 16 November 2021 / Accepted: 5 March 2022


© The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature 2022

Abstract
This study assesses climate change impact on rice productivity in 28 top rice-producing districts in Pakistan. Driscoll and
Kraay estimation is applied on panel data from 1981 to 2019. The cross-sectional dependency test results reveals that climatic
factors such as rainfall, humidity, and temperature have correlation issue in different selected regions. The study observes
that temperature, rice productivity, and rainfall have inverted U-shape relationship. Rice productivity response is quadratic
instead of linear towards average rainfall and temperature during the particular cultivation time, comprising of harvesting,
flowering, and planting. The coefficient of temperature during planting time is positive and significant, while the square of
temperature during planting time is negative and significant. Temperature during flowering and harvesting time is significant
and positive, while the square of temperature during flowering and harvesting time is negative and significant. Rain fall dur-
ing planting and flowering time are positive and significant; besides that, fertilizer usage stimulates and humidity hinders
rice productivity in selected districts of Pakistan. Our empirical results considered the issues of spatial dependency, serial
correlation, and heterogeneity.

Keywords Environment, Agricultural productivity, Climate patterns · Driscoll and Kraay Model · Pakistan

JEL Classification C23 · Q50 · Q54

Introduction the country is directly dependent upon this sector for its
livelihood (Govt. of Pakistan 2021); thus it is the main
Due to structural changes, Pakistan’s economy have been source of food security, and apart from that, this sector is
shifted from agricultural sector to industrial and services a big source of raw materials for industries (Akhuand and
sector as a result agricultural sector’s share in GDP has Abbas 2021; Abbas 2021; Khan et al. 2021a; Koondhar et al.
shrunk to 19.3% (Khan et al. 2021a, 2021b; Ho and Shi- 2021; Ifeoma et al. 2021) as most of the country industries
mada 2021). Despite of this, still agricultural sector is con- are agricultural based. Agriculture is also the main source
sidered as back bone of Pakistan’s economy as it is main of earning foreign exchange reserves. Pakistan’s 75 exports
source of employment. It has engaged largest portion of are based upon agriculture sector (Govt. of Pakistan 2021)
labor force, i.e., 42.3% and 65 to percent of population of which includes textile, cotton, vegetable, fruits, sugar, and
rice (Abbas and Waheed 2021). Rice is mostly exported to
United Arabs Emirates, Saudi Arabia, Iran,and Afghanistan.
Responsible Editor: Ilhan Ozturk
Besides rice as source of foreign earing, it is the second
* Faheem Ur Rehman staple food of Pakistan used in the consuming habits as it
rehman@urfu.ru deliver 22% of human energy per capita and 16% of protein
per capita (Abbas 2021; Li et al. 2021a; Gong et al. 2021;
1
Graduate School of Economics and Management, Ural Ahmad and Afzal 2021).
Federal University, Mira 19, 620002 Ekaterinburg, Russia
Rice production seems influenced by unforeseen future
2
Department of Economics, The University of Haripur, contingencies linked with carbon dioxide, global warming,
Haripur 22620, Pakistan
rainfall, and temperature. Prompt variation in climate pat-
3
Department of Economics, Kohat University of Science terns can be detected from thrilling weather situations and
and Technology, Kohat, Pakistan

13
Vol.:(0123456789)
Environmental Science and Pollution Research

its impact on wheat production and creation of food security by the climatic issue (Rehman and Noman 2020; Suresh
problems (Abbas 2022; Khan et al. 2020; Li et al. 2021b; et al. 2021; Bakhsh et al. 2020). South Asian agricultural
Xin and Tao 2021; Ozdemir 2021). Prior literature reveals production will be more affected compared to the rest of
that changes in climate patterns instigate upsurge in tem- the world (Rasul 2021; Xuefeng et al. 2021; Sultan 2012).
perature and concurrently make source of adverse effect on Agriculture sector is mainly dependent on weather condi-
rice crop and eventually reduce its quality and productivity tions along with other factors (Shaffril and Idris 2020 and
(Shahzad et al. 2021). It was shown by an inclusive simu- Kumara et al. 2020). Therefore, Pakistan should focus on cli-
lation research studies that fluctuation in climate patterns, mate change and its effect on her agriculture because climate
since 1961, reduced rice yield by 12.6%, but with leading change impacts on every stage of agricultural crops from
contribution of radiation dropped. The negative and posi- germination to maturity. It is barely possible for the poor
tive response of yield in diverse regions was established by farmers of Pakistan to utilize costly technology apparatus to
empirical analysis of climate indicators and observed pro- combat climatic and environmental issues (Modi et al. 2021;
ductivity. Mean temperature fluctuations, increasing changes Richards et al. 2018; Shah et al. 2022).
in weather conditions and increasing sea level forecasted Existing literature on climate change is based on Ricard-
less but probably have even more substantial impact on rice ian approach, crop simulation, and empirical data regression
production (Chandio et al. 2020; Masia et al. 2021; Khan analysis. Various studies on temperature impact on agricul-
et al. 2019; Rasul 2021; Ogundari and Onyeaghala 2021). tural production such as Li et al. (2021a) and Masia et al.
Climate change impact on production of rice is an impor- (2021) applied simulation techniques that forecast impact
tant area of research. Researchers are interested in climate of variation in climate variables like humidity, temperature,
change effects on rice quality and quantity produced (Abbas and rainfall on agriculture production. This technique takes
2022; Surendran et al. 2021; Saeed et al. 2021; Ji et al. 2021). into account the upcoming climate changes and its effects
For this purpose, crop model is used by some researchers on agricultural production (Rehman et al. 2020; Müller
for measurement of past and current climate pattern impact et al. 2015; Lewis and Witham 2012), although these sug-
on national and regional agriculture (Sirsat et al. 2019 and gestions are not applicable for developing economies as it
Wang et al. 2021; Iqbal et al. 2021). For example, a standard cost a lot. These techniques overestimate the climate effect,
regional crop model was adopted by Jie et al. (2014) con- and it is not applicable for crop due to substitution because
cluded that temperature increase by 1 °C in rice producing if one crop is affected by climate, so the former substitute to
area, the rice production is decreased by 4 percent. Also, another crop that is comparatively less affected by climate
perception regarding increase in temperature, reduced rice changes, or the former adopt other agriculture methodolo-
production is confirmed by Masia et al. (2021) for 16 regions gies like the use of machinery in agriculture and use seeds
of Bangladesh. Many researchers used econometric model that are comparatively resistive to climate changes.
to investigate climate effect on agriculture production by The Ricardian model is different from the simulation
keeping social and market factor constant for crop standard- model for crops as it takes into account substituting and
ized model (Ho and Shimada 2021; Singh and Dhadse 2021; adopting alternative methods in crops (Hossain et al. 2020;
Shahbaz et al. 2021). Guo et al. (2020) applied fixed effect Rehman et al. 2020; Hossain et al. 2019; Lotze et al. 2015).
estimation model and investigated that temperature variation By assuming fixed input and output prices and considering
has more impact on agriculture production in Africa com- the former substation to adopt new method, the Ricardian
pared to rainfall changes and other variables of climate. The model finds out relationship between climate change effect
increased maximum temperature level had excessive adverse on land rent and land value and found out positive relation-
effect on rice production compared to minimum temperature ship between farm value and farm rent with productivity of
effect (Emran et al. 2019; Ankrah and Jiang 2021; Mahmood the farm, i.e., a farm with more productivity will have higher
et al. 2021). rent or higher value in market as compared to a farm with
Ali et al. (2021) applied Ricardian model of climate low productivity (Ali et al. 2021; Hossain et al. 2020). Gouel
change impact on agricultural productivity and concluded and Laborde (2021) critically evaluated the Ricardian model
that increase in temperature has adverse effect, while and pointed out that the model is based upon unrealistic
increase in rainfall has positive impact on agriculture pro- assumption such as fixed output price, which means that
ductivity. They further elaborated that temperature effects when crop supply increases, the price will not be decreased
are greater than rainfall effect (Huo et al. 2021). Therefore, like economic basic law of supply, and in the same way fixed
climate change will have more adverse effects on the agri- input price means that its price will not be changed with
culture-based developing countries like Pakistan in terms of changes in the demand, again against the law of demand.
its level of vulnerability compared to developed countries. Moreover, this approach correlates climate change with that
This is because of developed countries’ more reliance on of farm rent or value instead of crop production. Farm rent or
service and manufacturing industries that are hardly affected value in case of developing countries is not determined with

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Environmental Science and Pollution Research

proper documentation due to nonexistence of market and


lack of information. Due to this market failure, the farm rent
and value cannot be calculated properly; therefore it will not
be applicable for developing countries (Rehman and Sohag
2021; Rehman and Khan 2015; Kemp 2014).
The response of agricultural productivity to climate
change is based upon many factors. For example, it takes
several months from germination to harvesting of crop, and
during this time period, climate factors such as humidity,
temperature and rainfall changes, so for in-depth analysis
of these changes effect on agriculture production data of
each variable at every stage is required. But a lot of studies
Pujab Sindh Baluchistan Khyber Pakhtunkhwa
like Suresh et al. (2021) have applied mean data of these
variables during life period of crop that has small change
from season to season. The study of Chandio et al. (2020) Fig. 1  Rice production (province-wise) in Pakistan. Source: Govern-
and Anser et al. (2021) find out climate change effects on ment of Pakistan reports
rice productivity in Pakistan. These study revealed that the
impact of ­CO2 has more effect than temperature and rainfall.
The current study considers top 29 rice producing districts 2019–2020 rice-cultivated area, production and productivity
of Pakistan, which presents clearer picture than aggregated are summarized in Fig. 2.
data. The data shows that there is almost increasing trend in
After cotton, rice is second cash crop of Pakistan; it con- productivity per hector; it is due to continuous agricultural
tributes 3.1% of value addition in agricultural production and research and development, new variety of seeds, use of fer-
0.6% to overall GDP of the country. Rice is most important tilizer and pesticides, etc. There is variation in cultivated
staple grain food crop, even more than wheat as wheat is area, due to substitution effects as when the farmer found
widely produced in Pakistan but its production is lower com- that other crop has more productivity as compared to rice;
pared to other wheat-producing countries such as the USA, they substitute toward those agri-products that have less
France, and China (Mustafa et al. 2021). Pakistan is a major opportunity cost and high yield. Similarly, when less area is
rice producer and ranks at 10th number in rice-producing and cultivated with rice, its production decreases.
-exporting countries. Pakistan produces about 07 million tons This research study is ominously different from the past
rice every year, and it contributes to 1.3% of rice exports in literature (Hanif et al. 2010; Janjua et al. 2010; Khan and
international market (Abbas 2022). Thus, it provides employ- Zhao 2019; Lobell et al. 2011; You et al. 2009) in various
ment, income, and livelihood to more than 30 million of the ways. First, period of crops extended on many months with
population who are dependent upon rice directly or indirectly different stages during that time climatic variables such as
(Khan et al. 2021a, b, c; Hossain et al. 2020). humidity, rainfall and temperature ominously change data
Rice is cultivated in Pakistan on 2.57 million hectors, is collected at every stage of the crop production, so that to
which is about 10% of total cultivated land. Its production is assess the climate pattern effect on crop yield in depth. For
mainly from Punjab and Sindh. Sindh is famous for produc- example, in research studies like Janjua et al. (2010) and
tion of white long grain rice known as IRRI-9 and IRRI-6 Hanif et al. (2010) during the crop season, mean precipi-
and Punjab for the production of world known Basmati tation has employed, which fluctuates only to some extent
along with IRRI-9. In some parts of Khyber Pakhtunkhwa from season to season. This study uses data of mean pre-
like Swat, rice is produced and similarly in Baluchistan cipitation, collected in flowering, plantation, and harvest-
(Akhtar et al. 2021; Govt. of Pakistan 2018). ing phases instead of average rainfall and temperature of
But the main producing province of rice in Pakistan is cropping season. These all periods required diverse water
Punjab that produces 58% of national rice production fol- level and temperature. Moreover, contrasting to past litera-
lowed by Sindh with 29% and Khyber Pakhtunkhwa and ture, we study the planting time as it requires less water, low
Baluchistan produce only 3% and 10%, respectively, which temperature, and high humidity compared to harvesting and
is summarized in Fig. 1. flowering stages. Lastly, not like other research studies, this
In fiscal year 2019–2020, rice cultivated area increased study examines disaggregated rice productivity across dif-
by 8% and reached to 3034 million hectors as compared to ferent districts of Pakistan.
2810 of the previous years 2018–2019, and its production This study is planned as follows: Overview of agricultural
increased by 2.9% from 7.202 to 7.410 metric tons from and rice yield in Pakistan exist in the “Methodology” sec-
2018–2019 to 2019–2020 (GoP, 2020). From 2003–2004 to tion. Sources of data and indicator description are mentioned

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Environmental Science and Pollution Research

Fig. 2  Rice cultivated area,


production level, and productiv-
ity in million/hector in Pakistan. 8000
Source: Government of Pakistan
7000
reports
6000

5000

4000

3000

2000

1000

culvated area Producon Producvity/hector

in the “Results and discussions” section. Empirical model of Development Centre Islamabad. Moreover, Pakistan major
the study is explained in Methodology section. The “Con- crop season are shown in Fig. 4.
clusion and policy recommendations” section shows results
and discussions. The conclusion and policy implication are
presented in the last section. Spatial dependency test

The present study implies a successive order in choosing the


Methodology paramount technique, giving the character of variables of our
interest. The study sample signifies Pakistan different zones,
The data which are significantly inter-connected because of domestic
trade, human and labor mobility, and financial capital flows.
The study comprises rice productivity, average rainfall Assumed the economic connection in the zones sample, the
and average temperature, fertilizer, and humidity for the study essentially explores the possible common correlation
28 major rice-producing districts of Pakistan. Temperature impacts in our selected indicators. This study uses the cross-
and rainfall variations are collected distinctly for each sea- sectional dependence (CD) test, presented by Pesaran et al.
son (i.e., planting, flowering, and harvesting). This study (2008). This test allows us to detect cross-sectional inde-
uses data of 28 districts (i.e., Sargoda, Khusab, Faisalabad, pendence null hypothesis against cross-sectional dependency
Sialkot, Gujrnawala, Jhang, Sheikhu Pura, Lahore, Kasur, amongt the chosen sample districts.
Okara, Sakiwal, Multan, DG Khan, Rajanpur, KahwalPur, ( )1∕2
Rahimyar Khan, Bakawal Nagar, Jacobabad, Shilkarpur, CD =
TN(N − 1)
(1)
Larkana, Dadu, Hyderabad, Badin, Thatta, Malakand, Swat 2
and Lower Dir, Nasirabad) ranging from 1981 to 2019 which
where P̂ , shows degrees of pair-wise correlation of cross-
corresponds to crop season. The selected major rice-pro-
section residuals attained from Augmented Dickey Fuller
ducing districts are shown in Fig. 3. The selection of these
(ADF) test. Time is denoted by T and cross-section dimen-
districts for the study is established mainly on two delib-
sions are denoted by N in Eq. 1. In the presence of CD issue,
erations: firstly, the presence of meteorological data since
we check the order of integration in our selected indicators
early and, secondly, the substantial district share in rice
to evade spurious regression as our selected sample period is
production. Data on rice production is attained from Statis-
comparatively long. To observe integration order, the study
tical Division of Pakistan. Data on aggregated average cost
employ the second-version panel unit-root procedure called
(cost of harvesting, sowing, seeds and irrigation) is taken
Cross-sectional Im, Pesaran, Shin (CIPS) that accounts for
from Agriculture Statistics of Pakistan. Rice productivity
common correlation effect or cross-sectional dependency.
variable is constructed as the ratio of per acre production to
per acre average cost. Climatic variables such as humidity, ΔY it = 𝛼i + 𝛽i Yit−1 + 𝛾i Y t−1 + ∅i ΔY t + 𝜀it (2)
rainfall, and temperature data are gathered from Metrologi-
cal Department of Pakistan. Finally, fertilizer used in rice Here, t = 1, ……., T, i = 1, ….…. N, and Y t is correlation
production data is obtained from Pakistan National Fertiliser variable for 1-year lagged value at first the difference of

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Environmental Science and Pollution Research

Fig. 3  Selected major rice producing districts of Pakistan

Fig. 4  Pakistan major crop


seasons calendar

Y. After Eq. 2 estimation, a null hypothesis on the slope In presence of cross-districts interdependency and unit-
parameter is constructed. H0 ∶ 𝛽i = 0 for all i against root characteristics approval allows us to employ.
H1 ∶ 𝛽i < 0 for i.

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Environmental Science and Pollution Research

Fixed effect with Driscoll and Kraay standard error Cross-sectional dependency may arise when the error
terms across several panels are interrelated. Specifically,
We construct six empirical models including non-linear and when j and i are distinct panels, cross-sectional depend-
linear form, for reducing the rainfall and temperature over ency infers: 𝜌ij = 𝜌ji = corr 𝜀it , 𝜀jt , ≠ 0
( )

lapping effects in cultivation season. The foundation for the This problem is most common in panel data sets of
presence of quadratic terms is that a particular rainfall and financial or macroeconomic indicators with somewhat
temperature are essential for the sophisticated and high rice long time periods (Torres-Reyna 2007). Furthermore De
production. Once the rainfall and temperature surpass the Hoyos and Sarafidis (2006) highlighted that the current
threshold can be unfavorable to productivity. issue become more common in macro-economic indica-
tors because indicators of financial and economic inte-
RPit = 𝛼i + 𝜏 + 𝛽1 Fertilizeri,t + 𝛽2 Humidityi,t gration generate different countries prone to the same
(M1.1) unobserved phenomenon. Assume that the dependency
+ 𝛽3 Temp_Plai,t + 𝛽4 Rain_Plai,t + 𝜀it
is triggered by unobserved indicators that are linked to
residuals across panelsʼ series but not to the regressors.
RPit = 𝛼i + 𝜏 + 𝛽1 Fertilizeri,t + 𝛽2 Humidityi,t + 𝛽3 Temp_Plai,t +
(M1.2) In that scenario, the coefficient parameter estimations in
+ 𝛽3 Temp_Pla2i,t + 𝛽4 Rain_Plai,t + 𝛽5 Rain_Pla2i,t + 𝜀it
fixed-effects will be stable, but its significance will be
incorrect because of standard errors biasness (De Hoyos
RPit = 𝛼i + 𝜏 + 𝛽1 Fertilizeri,t + 𝛽2 Humidityi,t and Sarafidis 2006). The Pesaran test is used to see if the
+ 𝛽3 Temp_Flowi,t + 𝛽4 Rain_Flow2i,t + 𝜀it
(M2.1) indicator data had any cross-sectional dependency (Pesa-
ran et al. 2004) devised on Breusch and Pagan (1980)
RPit = 𝛼i + 𝜏 + 𝛽1 Fertilizeri,t + 𝛽2 Humidityi,t + 𝛽3 Temp_Flowi,t + study to apply a test for cross-sectional dependency in
+ 𝛽3 Temp_Flow2i,t + 𝛽4 Rain_Flowi,t + 𝛽5 Rain_Flow2i,t + 𝜀it
(M2.2) balanced and unbalanced panel time series data by apply-
ing coefficient correlation pair-wise from within-panel
ordinary least square regressions. For sufficiently long
RPit = 𝛼i + 𝜏 + 𝛽1 Fertilizeri,t + 𝛽2 Humidityi,t
(M3.1) time series data and no cross-sectional dependency null
+ 𝛽3 Temp_Flowi,t + 𝛽4 Rain_Flowi,t + 𝜀it
hypothesis, test statistic assembles a normal distribu-
tion N approaches infinity. At significance level of 5%,
RPit = 𝛼i + 𝜏 + 𝛽1 Fertilizeri,t + 𝛽2 Humidityi,t + 𝛽3 Temp_Heri,t + Pesaran test statistic is significant, indicating the exist-
+ 𝛽3 Temp_Her2i,t + 𝛽4 Rain_Heri,t + 𝛽5 Rain_Her2i,t + 𝜀it
(M3.2) ence of cross-sectional dependency in the data set. For
cross-sectional dependency the study applies two cor-
Here, RPit denotes rice productivity for i zone and over rections. Driscoll Kraay standard errors is the first one,
time t, 𝛼i presents a regional fixed effect, τ shows time which is unaffected by autocorrelation, cross-sectional
effect, Fertilizeri,t is fertilizer use, Humidityi,t is humidity dependency and heteroscedasticity. Driscoll and Kraay
level, Temp_Plai,t denotes plantation time average tempera- (1998) developed on the research study of Newey and
ture, Temp_Pla2i,t is the square of plantation season average West (1987). The Driscoll and Kraay (1998) method
temperature, Temp_Flowi,t presents the average temperature entail taking product average between explanatory factors
during flowering season, Temp_Heri,t signifies the average and residual term and after that apply on the data. These
temperature during harvesting time, Rain_Flowi,t shows data are used in estimator of weighted HAC for standard
average rainfall during flowering time, Rain_Plai,t displays errors generation that are now resilient against cross-
average rainfall during planting time, Rain_Heri,t presents sectional dependency. Driscoll Kraay standard errors are
average rainfall during harvesting time, Temp_Flow2i,t preferable to Huber White standard errors or Newey West
stands average temperature during flowering season square standard residuals in the current studyʼs variable data set
form, Temp_Her2i,t denotes average temperature during har- since all three issues are present. For a comprehensive
vesting season square form, Rain_Pla2i,t displays square empirically usage of standard errors of Driscoll Kraay,
of average rainfall during planting season square form, see Hoechle (2007) or Driscoll and Kraay (1998). Sec-
Rain_Flow2i,t is square of flowering stage average rainfall, ondly, Pesaran test suggests that cross-sectional depend-
Rain_Her2i,t is square of harvesting time average rainfall ency exists, and it provides no information about how
and 𝜀it is error term. strong the relationship is or between which panels it may
( ) exist. As a result, the study claims that cross-sectional
𝜌ij = 𝜌ji = corr 𝜀it , 𝜀jt , ≠ 0
dependence is considerably more likely to exist among
distinct zones with similar characteristics.

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Environmental Science and Pollution Research

Results and discussions correlations among the cross-sections, whereas the fourth
and fifth columns signify CIPS (Z-t-bar) statistics for level
Table 1 indicates descriptive statistics of the study. The and first difference forms of particular indicators, respec-
standard deviation (std. dev.) in logarithmic form and rice tively. Table 2 shows spatial dependency of all variables
productivity mean value are 2.965 and 8.633, respectively, except productivity of rice. Moreover, CIPS test reveals that
presenting the observations are different from mean value in all variables of the study are integrated at level (0), indi-
a minor range. Humidity mean value is 6.105 and std. dev. cating that selected indicators are stationery. After prac-
value is 1.483 that shows fluctuation in humidity in a narrow tice panel unit root, the current study advances to choose
range over time period in chosen 29 districts of Pakistan. the estimation model. Particular heterogeneity in variables
The mean value of fertilizer is 5.754 and 1.523 is its across zones and spatial dependency, we employ two-way
Std. Dev., which indicates that both values are within the fixed effect with Driscoll and Kraay estimator. Furthermore,
small range. However, the)Std. Dev. of temperature during Figs. 5, 6, 7 and 8 show that productivity of rice and climate
planting time Temp_Plai,t is 1.523 while its mean value is explicatory variables have quadratic relationships; therefore,
(

1.637, donating that Temp_Plai,t fluctuates within the tem- we also examines non-linearity in the model used in our
perature range across the nominated districts of Pakistan. study.
Three (03) linear and nonlinear models are considered by
(Like, the Std.)Dev. of temperature during flowering time
Temp_Flowi,t is 1.053 and mean value is 4.435 that shows the study for reduction rainfall and temperature overlapping
that Temp_Flowi,t varies with in the small ranges. The Std.) effect over the cultivation season. In Table 3, M1.1, M2.1,
Dev. of temperature during harvesting time Temp_Heri,t and M3.1 are harvesting, flowering, and planting season’s
(

is 1.754 and mean value is 4.845 showing that both values linear models. Along, M1.2, M2.2, and M3.2 designate
vary across the zones with(a small variation. Similarly, rain- nonlinear models for harvesting, flowering, and planting
fall during planting time Rain_Plai,t , standard deviation times. M1.2 and M1.1 comprised rainfall and temperature
)

is 1.843 and mean value is 2.475, which presents that vari-


ation across the selected different zones of Pakistan varies Table 2  Cross-sectional dependence and integration order
across in small range. During flowering stage rainfall mean
Variable CD-test abs(corr) CIPS
and Std. Dev. values are 3.905 and 1.063 respectively which
demonstrate that the fluctuation variation is insignificant. Level First difference
Correspondingly, the Std. Dev and mean value of rain fall
RPi,t − 0.27 0.743 − 4.773*** − 4.653***
during harvesting time are 1.943 and 3.362, respectively,
Humidityi,t − 6.86* 0.924 − 5.409*** − 6.814***
that indicate that variation across the selected different zones
Fertilizeri,t 53.64*** 0.882 − 4.714*** − 5.803***
of Pakistan varies across in small range. The total number of
Temp_Plai,t 27.83*** 0.643 − 5.713*** − 4.417***
observations are 1080.
Temp_Flowi,t 13.52*** 0.817 − 4.625*** − 4.329***
Pesaran et al. (2004) empirical results of CD test and
Temp_Heri,t 23.90*** 0.892 − 4.332*** − 4.343***
Pesaran (2007) panel unit-root test of CIPS of the specific
Rain_Plai,t 31.43*** 0.901 − 6.714*** − 9.612***
indicators of twenty-nine (29) districts from four diverse
Rain_Flowi,t − 7.74*** 0.921 − 7.422*** − 9.701***
Pakistani provinces during 1981–2019 are presented in
Rain_Heri,t − 5.31*** 0.830 − 6.93*** − 7.813***
Table 2. Second column of Table 2 indicates CD statis-
tics, and the third column of the said table shows average *p < 0.1, **p < 0.05, and ***p < 0.01

Table 1  Descriptive statistics


Variable Mean Std. Dev Min Max

RPit 8.633 2.965 1.009 5.961


Humidityi,t 6.105 1.483 4.217 5.532
Fertilizeri,t 5.754 1.523 5.526 6.263
Temp_Plai,t 3.843 1.637 3.287 4.043
Temp_Flowi,t 4.435 1.053 3.537 4.734
Temp_Heri,t 4.845 1.754 4.425 4.452
Rain_Plai,t 2.475 1.843 1.826 3.623
Rain_Flowi,t 3.905 1.063 2.532 4.734
Rain_Heri,t 3.362 1.943 1.532 4.042
Fig. 5  Rice production and temperature during the time of planting

13
Environmental Science and Pollution Research

which demonstrates that the rice productivity enhances with


temperature rise, but after the threshold point, it declines
with additional augmentation of temperature during planting
season. Correspondingly, Temp_FlowandTemp_Her coeffi-
cients are significant and positive while the coefficients of
Temp_Flow2 andTemp_Her2 are significant and negative,
suggesting that rice productivity enhances with temperature
upsurge, but exceeding threshold point; it beads with extra
temperature intensification during harvesting and flower-
ing time. The results are similar to that of Gul et al. (2019)
study; amusingly, rice productivity and rainfall follow a lin-
ear model. The Rain_PlanandRain_Flow time coefficients
are significant and positive, representing that rainfall stimu-
Fig. 6  Rice production and temperature during the time of flowering lates rice productivity during flowering and planting time in
selected different districts of Pakistan. The empirical results
are similar to Jan et al. (2021) study.
Fertilizer usage seems to be significant and positive,
adjusting the rainfall and temperature season. However, its
effect does not appear in Model 2 and Model 3 while taking
into account the rainfall and temperature during the seasons
of flowering and harvesting. The results verify Shabbir et al.
(2020) study. The coefficient of humidity is steadily negative
in entire models of our study, signifying that greater humid-
ity is unfavorable to rice productivity. The result supports
Abbas (2021) study. Furthermore, this study establishes no
time effect and no regional fixed effect. The assessments are
robust considering spatial dependency, heterogeneity, and
serial correlation.

Fig. 7  Rice production and temperature during the time of harvesting


Conclusion and policy recommendations

The study examines rice productivity response to climate


indicators controlling fertilizer practice in the uppermost
twenty-eight (28) rice-producing districts of Pakistan. We
utilized, two-way fixed effect with Driscoll and Kraay Stand-
ard Error to investigate 28 zones panel data is used. The
study concludes numerous outcomes of great interest.
Firstly, the whole climate indicators such as humidity,
rainfall, and temperature are dependent spatially. Secondly,
the selected indicators are stationary, signifying that time
dynamic have insignificant impact on rice production.
Thirdly, rice production reaction to temperature is of quad-
ratic nature. With increase in temperature rice production
increases till threshold point, after that its production dimi-
nutions with additional rise in temperature in plantation
season. Likewise, rice productivity increases with tem-
Fig. 8  Rice production and plantation time rainfall
perature increase, but as temperature exceeds, the threshold
level, during harvesting and flowering time, its productivity
indicators merely for plantation season to elude overlapping diminishes. We negate the claim of Chandio et al. (2020)
issue. that temperature does not enhance rice productivity in Paki-
The coefficient of Temp_Pla is significant and positive stan. Fourth, rice productivity and rainfall season have a
while the coefficient of Temp_Pla2 is significant and negative linear model, indicating that rainfall enhance spurring rice

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Environmental Science and Pollution Research

Table 3  Climate response to DV: RP Model 1.1 Model 1.2 Model 2.1 Model 2.2 Model 3.1 Model 3.2
rice productivity
Humidityi,t − 3.057*** − 0.554*** − 0.124* − 1.426*** − 0.767** − 0.919***
Stand. Error 0.699 0.029 0.094 0.367 0.328 0.089
Fertilizeri,t 0.156*** 1.553*** 0.197* 0.918** 0.170** 0.324**
Stand. Error 0.375 0.194 0.015 0.013 0.094 0.144
Temp_Plai,t 1.6017*** 0.531***
Stand. Error 0.820 0.019
Temp_Pla2i,t − 1.317***
Stand. Error 0.132
Temp_Flowi,t 1.430*** 1.565***
Stand. Error 0.203 0.249
Temp_Flow2i,t − 0.434***
Stand. Error 0.0513
Temp_Heri,t 1.183*** 1.176***
Stand. Error 0.150 0.139
Temp_Her2i,t − 1.214***
Stand. Error 0.119
Rain_Plai,t 1.534*** 1.251***
Stand. Error 0.054 0.071
Rain_Pla2i,t 0.735***
Stand. Error 0.062
Rain_Flowi,t 1.210*** 0.975***
Stand. Error 0.306 0.060
Rain_Flow2i,t 0.427***
Stand. Error 0.078
Rain_Heri,t 0.150 0.139
Stand. Error 0.028 0.306
Rain_Her2i,t − 0.635***
Stand. Error 0.078
Contsant − 2.033** 1.7532 2.754 2.852 1.643 1.732
Stand. Error 0.425 0.523 0.109 0.041 0.623 0.527
R − sqaured 0.632 0.602 0.721 0.650 0.616 0.691
Time Effect No No No No No No
Regional Fix. Ef No No No No No No

*p < 0.1, **p < 0.05, ***p < 0.01

productivity during flowering and planting time. Fifth, fer- critical to have a policy for more targeted adaptation to
tilizer usage seems significant and positive, controlling the climate patterns in place of a single standard home policy.
rainfall and temperature during the planting season. Sixth, in
all model’s humidity is steadily injurious, representing that
greater humidity is harmful to rice productivity. Author contributions FUR write the first draft of the manuscript by
collecting the data and analysis, and EA revised the manuscript by cor-
The current studyʼs empirical findings have a number recting the English language and also works in methodological section.
of important policy implications. The impact of climatic All authors revise the manuscript and approve.
indicators on rice productivity should be given more atten-
tion in order to increase rice productivityʼs resilience to Data availability Not applicable.
climate trends. Second, large agricultural research and
development expenditures should be made to enhance Declarations
the varieties of rice crops that are adaptable to climate
patterns, i.e., higher production, heat tolerance, and viral Ethics approval The authors not reported any potential interest of con-
flict.
attack resistance. Finally, because climate patterns do not
always sway all Pakistani districts in the same way, it is

13
Environmental Science and Pollution Research

Consent to participate Not Applicable. Govt. of Pakistan (2018) Economic survey of Pakistan. Federal Bureau
of Statistics, Ministry of Finance, Islamabad
Consent to publish Not Applicable. Gong L, Liu D, Jiang (2021) Distribution characteristics of climate
potential productivity of soybean in frigid region and its response
Competing interests The authors declare no competing interests. to climate change. Environ Sci Pollut Res. https://d​ oi.o​ rg/1​ 0.1​ 007/​
s11356-​021-​15879-y
Gouel C, Laborde D (2021) The crucial role of domestic and interna-
tional market-mediated adaptation to climate change. J Environl
Econ Manag 106:102408
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