GOA, 12th November 2025: Goa Institute of Management (GIM) has studied the effects of climate change and macroeconomic variables on productivity and growth in the Asia-Pacific region.
Conducted by GIM, in collaboration with Xavier Institute of Management (XIM) University, Bhubaneswar, and BITS Pilani, Goa, the researchers have examined the short-term and long-term linkages between the economic drivers and the environment with the aim of illustrating the two-way relationship of growth and climate action.
Published in the prestigious Bulletin of Monetary Economics and Banking journal, in a paper 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 of BITS Pinali, Goa Campus, the study addresses how inflation, trade, energy use, and carbon emissions jointly shape regional output.
By applying Advanced Econometric Modelling (ARDL), the researchers have showcased that economic expansion can no longer be pursued in isolation from environmental responsibility. Other key findings of the research include:
- Trade openness and Gross Domestic Product (GDP) are still the major long-term determinants of economic output.
- Carbon (CO₂) emission is usually associated with growth in the short-term, but it is a detrimental growth factor in the long-term.
- Context-specific policy design becomes clear when appreciating how Renewable Energy (RE) will affect different economies.
- Policymakers recognize there is no trade-off between economic growth and protection of the environment.
Speaking about the research, Dr. Chinmaya Behera, Associate Professor, GIM, said, “The approach to growth in the Asia-Pacific cannot anymore be at variance with the environment; it must be aligned. There is no doubt about it: sustainability is not an obstacle to growth and development; it is an enabler. The region, with the combination of clean energy, strategic policy, and ethically responsible investment, will be able to deliver growth, not only this decade, but for many decades to come.”
The findings of this research will enable the design of fiscal policy instruments that encourage environmentally sustainable economic activities within an enabling framework to be inclusive of the planned economic growth.
With Asia contributing to nearly half of global GDP growth and accounting for a major share of carbon emissions, it stands at a crossroads between economic ambition and environmental urgency. Against this backdrop, the research from GIM bridges economic, policy and sustainability and contribute to evidence-based policymaking that drive inclusive growth.
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