Akademik Veri Yönetim Sistemi
Journal of Asian Economics, cilt.103, 2026 (SSCI, Scopus)
Agricultural production plays a fundamental role in ensuring food security and is among the priority areas of the global policy agenda in line with sustainability goals. Climate change increases supply-side uncertainties in production processes; while monetary policy is a key policy tool that can either amplify or mitigate the impact of these shocks on the agricultural sector through financing conditions and input costs. Nevertheless, studies addressing the impact of climate shocks in conjunction with economic policy instruments remain limited; in particular, the simultaneous effects of climate change and monetary policy on agriculture have not been sufficiently analysed. This study examines the effects of climate change and monetary policy on agricultural production in the E7 countries during the period 2000–2022, aiming to fill this gap. Money supply represents monetary policy in the analysis, and a unique climate change index is created to reflect the multidimensional nature of climate change, going beyond single climate proxies. Control variables such as agricultural land, rural population, and renewable energy consumption were not overlooked. MMQR was used in the empirical analysis; the robustness of the results obtained was tested using FGLS and PCSE estimators. Furthermore, the causality relationships between the variables were assessed using the Dumitrescu–Hurlin panel causality test. The findings reveal that climate change negatively affects agricultural production; conversely, monetary expansion, agricultural land, rural population, and renewable energy consumption increase it. The results indicate the necessity of designing monetary policies in line with climate-resilient policies to strengthen agricultural production and ensure food security.