There have been limited studies that identify the large-scale impact of atmospheric carbon dioxide on agricultural yield, especially for developing countries. I use NASA’s Orbiting Carbon Observatory – 2 (OCO-2) data to assess the impact of carbon dioxide on the yield of wheat, rice, and maize in India for 398 districts between the years 2014 to 2017. Using district level panel fixed effects model, I find that wheat yield increases by 0.8 percent with a 1 part per million (ppm) increase in atmospheric carbon dioxide. Rice yield declines by 1 percent for a 1 ppm increase in carbon dioxide, while there is no significant effect of carbon dioxide on maize. There is an endogeneity problem arising from the simultaneity of plants being a source of CO2 by respiring it out, which I overcome by controlling for vegetation in a region using the solar induced chlorophyll index (SIF). The decline in the rice yield with increased carbon dioxide in the atmosphere does not hold for the districts along the Indo-Gangetic plain, where the rice cultivars used are known to be superior to the rest of the country. There is difference in the impact of carbon dioxide on yield based on water availability. There is no negative effect of atmospheric carbon dioxide on rice yield in districts without drought proneness.
We prove that under separable production and consumption, farm revenue from the sale of crops is independent of household characteristics, such as land and labor endowments. We use this result to test for separability. Analyzing a panel of 960 households in Chandrapur district of India, our fixed effects model reveal a positive correlation between land ownership and farm revenue, controlling for confounding variables. Land and labor endowments are positively correlated with farm revenue for small and marginal land-owning households and for households that grow food crops. Thus, we find that there is a breakdown of separability between produciton and consumption for the households.
Through an in-depth review of empirical studies, case examples, and emerging trends, this review paper seeks to underscore the transformative potential of digital agriculture in promoting sustainable food systems. We examine the convergence of technological innovation, data analytics, and agricultural practices to elucidate how digital agriculture unfolds two major pathways towards sustainability, i.e, food security and climate change.