Impact of Climate Change on the Australian Agricultural Export

The Australian agricultural sector is of high importance as a predominant contributor to GDP and export earnings. However, rapid global warming and climate change may pose obstacles to agricultural exports. Existing literature shows that the issue is not receiving enough attention from policymakers, researchers, and academicians as it should. Therefore, in this paper, we have investigated the impact of global climate change on Australian agricultural export earnings. Our analyses, based on graphical, statistical, and econometric estimation (ordinary least squares) for the data period of 1990–2022, reveal that climate change caused by environmental pollution is harming Australian agricultural export performance. Specifically, environmental degradation and the average yearly temperature increase in Australia triggered by the exponential growth of CO2 emissions have negative impacts on Australian agricultural export growth. As the agricultural sector contributes about one-third of Australia's total export earnings, the rapid decline in its export earnings may create multiple imbalances in the Australian economy in the future. Thus, the country should launch immediate preventive actions to ameliorate the environmental condition, defending its agricultural export performance and maintaining environmental sustainability.