The Goa Institute of Management (GIM) has unveiled a comprehensive study examining the effects of climate change and macroeconomic variables on productivity and growth across the Asia-Pacific region.
Conducted in collaboration with the Xavier Institute of Management (XIM) University, Bhubaneswar, and BITS Pilani, Goa, the research explores both short-term and long-term linkages between economic drivers and environmental factors, emphasizing the two-way relationship between growth and climate action.
Published in the Bulletin of Monetary Economics and Banking, the study was co-authored by Dr. Chinmaya Behera from GIM, Dr. Ranjan Kumar Mohanty from XIM University, and Dr. Debasis Patnaik along with Ms. Biswashree Tanaya Priyadarsini from BITS Pilani, Goa Campus. The paper investigates how inflation, trade, energy use, and carbon emissions collectively influence regional output.
Using Advanced Econometric Modelling (ARDL), the researchers concluded that economic growth cannot be pursued independently of environmental responsibility.
The study found that trade openness and Gross Domestic Product (GDP) remain the key long-term determinants of economic output, while carbon emissions, though linked to growth in the short term, have adverse effects on growth over the long term.
It also emphasizes that renewable energy adoption will impact economies differently, underlining the importance of context-specific policy design.
“The approach to growth in the Asia-Pacific cannot anymore be at variance with the environment; it must be aligned. Sustainability is not an obstacle to growth and development; it is an enabler,” said Dr. Chinmaya Behera, Associate Professor at GIM. “With clean energy, strategic policy, and ethically responsible investment, the region will be able to deliver growth for many decades to come.”
The findings provide critical insights for designing fiscal policy instruments that promote environmentally sustainable economic activities while supporting inclusive growth.
With Asia contributing nearly half of global GDP growth and accounting for a significant share of global emissions, the research underscores the urgent need for policies that harmonize economic ambition with environmental stewardship.
The GIM-led study bridges economic, policy, and sustainability perspectives, contributing to evidence-based policymaking for balanced and inclusive regional development.