Title: Eco-market dynamics: deciphering India's agricultural pricing in the context of carbon emissions and inflation

Authors: R. Supriya; Vaishnavi Balaji; A. Shakti Priya; R. Manigandan; N. Parthasarathi

Addresses: School of Business and Management, Christ University, Yeshwanthpur Campus, Bangalore, India ' Department of Management Studies, Dayananda Sagar College of Engineering, VTU, MBA, Bangalore, India ' VIT Business School, Vellore Institute of Technology, Vellore – 632 014, Tamilnadu, India ' Faculty of Management, SRM Institute of Science and Technology, Vadapalani Campus, Chennai, India ' School of Commerce and Management Studies (SCMS), Dayananda Sagar University, Devarakaggalahalli, Harohalli, Bengaluru South Dt. – 562 112, India

Abstract: This study explores the intricate relationship between carbon emissions, agricultural commodity prices, and inflation in India. Using monthly data from January 2014 to March 2022 and structural vector auto regression (SVAR) modelling, the analysis reveals diverse dynamics among key commodities. An inverse relationship is found between wheat prices and inflation, suggesting consumer benefits. Turmeric shows a strong negative correlation, indicating unique market behaviour, while refined soybean oil and cotton prices exhibit minimal negative impacts. In contrast, crude palm oil prices positively influence inflation. A noteworthy finding is the negative correlation between carbon emissions and inflation, highlighting the environmental-economic linkage. These insights enhance understanding of how specific agricultural prices interact with inflation, and how environmental variables play a role. The findings can guide evidence-based policies for agricultural stability, environmental sustainability, and economic growth in India. The implications extend globally, offering valuable insights for developing economies facing similar challenges.

Keywords: carbon emissions; agricultural commodity prices; inflation; agricultural stability; environmental sustainability; economic prosperity; India.

DOI: 10.1504/IJRM.2025.149684

International Journal of Revenue Management, 2025 Vol.15 No.3/4, pp.179 - 215

Received: 31 Jan 2025
Accepted: 30 Jun 2025
Published online: 10 Nov 2025 *

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