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2013, Climatic Change
This paper investigates the impacts of climate change on US returns to research investments on agricultural productivity. We examine this using a historical data set in a panel time-series econometric model of state agricultural productivity. The fitted model allows derivation of the rate of return to research investments and the effects of climate change thereon. We find climate change is altering the rate of return to public agricultural research in a spatially heterogeneous manner. Increases in precipitation raise returns to research, while the impact of higher temperatures varies by region, are negative in Southern areas, particularly the Southern Plains, and positive in northern areas. We simulate the impact of projected climate change and find cases where agricultural productivity is reduced, for example in the Southern Plains. Finally, we consider the amount of research investment that is needed to adapt to overcome the impacts of climate change on agricultural productivity. Under the 2100 scenario, a 7-17 % increase in total US research investment is needed to adapt, but effects by region differ greatly-some requiring little changes and the Southern Plain requiring an increase as high as 57 %. The Intergovernmental Panel on Climate Change (IPCC) and others indicate that the elevated greenhouse gas concentrations and associated climate change will influence agricultural productivity (IPCC 2007). A related but, to our knowledge, unstudied factor is the effects of climate change on productivity growth and the returns to research investments. In this study we examine how climate change alters agricultural productivity growth and the returns to agricultural research investment.
Voice of the Publisher, 2025
This study examines the projected impacts of climate change on U.S. agriculture by 2050, highlighting significant spatial and sectoral variations in agricultural productivity and economic implications for rural communities. The analysis reveals that all U.S. regions are expected to experience temperature increases, with the Southwest facing the most substantial changes. Precipitation patterns will vary, leading to an increased frequency of extreme weather events. The Southwest and Southeast are projected to suffer the most severe productivity declines, while the Northeast and Pacific Northwest may see slight gains. Crop-specific impacts indicate substantial yield reductions for wheat, corn, and soybeans, with potential increases for cotton. Economic consequences include changes in rural incomes, employment, and food prices. The study identifies precision agriculture as the most effective adaptation strategy, alongside conservation tillage and crop diversification. Policy recommendations emphasize region-specific adaptation plans, investment in climate-smart technologies, and support for farm diversification. The findings underscore the need for targeted policies and continued research to enhance the resilience of U.S. agriculture and maintain global competitiveness.
Land Economics, 1999
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2009
Proceedings of the National Academy of Sciences of the United States of America, 2017
The sensitivity of agricultural productivity to climate has not been sufficiently quantified. The total factor productivity (TFP) of the US agricultural economy has grown continuously for over half a century, with most of the growth typically attributed to technical change. Many studies have examined the effects of local climate on partial productivity measures such as crop yields and economic returns, but these measures cannot account for national-level impacts. Quantifying the relationships between TFP and climate is critical to understanding whether current US agricultural productivity growth will continue into the future. We analyze correlations between regional climate variations and national TFP changes, identify key climate indices, and build a multivariate regression model predicting the growth of agricultural TFP based on a physical understanding of its historical relationship with climate. We show that temperature and precipitation in distinct agricultural regions and seas...
American Economic Review, 2007
This paper measures the economic impact of climate change on US agricultural land by estimating the effect of random year-to-year variation in temperature and precipitation on agricultural profits. The preferred estimates indicate that climate change will increase annual profits by $1.3 billion in 2002 dollars (2002$) or 4 percent. This estimate is robust to numerous specification checks and relatively precise, so large negative or positive effects are unlikely. We also find the hedonic approach-which is the standard in the previous literature-to be unreliable because it produces estimates that are extremely sensitive to seemingly minor choices about control variables, sample, and weighting. (JEL L25, Q12, Q51, Q54)
RePEc: Research Papers in Economics, 2002
c Differences in estimates of the impact of climate change on U.S. agriculture can be explained the failure to adequately allow for differences between rain-fed and irrigated agriculture as well as urban influences. We derive feasible GLS weights to obtain an efficient estimator and unbiased test statistics. A 1ayesian outlier analysis shows that irrigated and urban counties can not be pooled with dryland counties. When we limit the analysis to dryland and non-urban counties, the different damage estimators from previous studies overlap and the confidence intervals are cut by up to half. Dryland agriculture is unambiguously damaged under the CO2 doubling scenario. JEL Ql, Q2, C5) We gratefully acknowledge comments on an earlier draft by John
2020 Annual Meeting, July 26-28, Kansas City, Missouri, 2020
International Journal of Global Warming, 2015
The increased frequency and severity of drought episodes have characterised the natural environment of the Sahel region in Africa during the past four decades. With little to no mitigation option available to them, countries of the Sahel will face a further deterioration of their economic environment, as an ill-agricultural sector will most likely drag down their whole economies. This paper uses a six-month standardised precipitation index and average temperature during the growing season days to quantify the adverse impacts of climate change on agricultural productivity. I first estimate a Malmquist productivity index and its efficiency and technical change components. I further assess the statistical significance of the indices by estimating confidence intervals around the point estimates using a bootstrap method. In the second stage of the analysis, I model the adverse effects of drought and temperature on agricultural productivity using a probit specification. The findings of this paper point to a dismal agricultural productivity. These findings also highlight the significant cumulative negative impacts of higher temperatures and recurrent droughts on agricultural-based economies.
RePEc: Research Papers in Economics, 2012
Global warming has been an issue lately in many aspects because it has been in increasing trend since 1980s. This paper estimates the climate change effects on U.S. agriculture using the pooled cross-section farm profit model. The data are mainly based on the annual Agricultural Resource Management Survey (ARMS) from USDA for the time period between 2000 and 2009 in the 48 contiguous States. For climate measure, growing season drought indices (the Palmer Drought Severity Index (PDSI) and Crop Moisture Index (CMI)) are applied to the analysis and both indices have a negative relationship with temperature. The estimates indicate that one unit increase in PDSI (CMI) leads to 5.5% (13.9%), 4% (9%), and 5% (14%) increase in farm profits for all farms, crop farms, and livestock farms. This paper provides several contributions to the literature. First, the data set is very rare and unique national survey that provides an individual farm level observation. Therefore, it gives more detailed farm structure and financial information for the analysis compared to other studies. Second, drought indices (PDSI and CMI) are used for estimating the impact of weather on farm profits while temperature, precipitation, and growing degree-days are typical weather variables in literatures.
Review of Economics and Statistics, 2006
We link farmland values to climatic, soil, and socioeconomic variables for counties east of the 100th meridian, the historic boundary of agriculture not primarily dependent on irrigation. Degree days, a non-linear transformation of the climatic variables suggested by agronomic experiments as more relevant to crop yield gives an improved fit and increased robustness. Estimated coefficients are consistent with the experimental results. The model is employed to estimate the potential impacts on farmland values for a range of recent warming scenarios. The predictions are very robust and more than 75% of the counties in our sample show a statistically significant effect, ranging from moderate gains to large losses, with losses in the aggregate that can become quite large under scenarios involving sustained heavy use of fossil fuels.
Climatic Change, 2000
We examined the impacts on U.S. agriculture of transient climate change as simulated by 2 global general circulation models focusing on the decades of the 2030s and 2090s. We examined historical shifts in the location of crops and trends in the variability of U.S. average crop yields, finding that non-climatic forces have likely dominated the north and westward movement of crops and the trends in yield variability. For the simulated future climates we considered impacts on crops, grazing and pasture, livestock, pesticide use, irrigation water supply and demand, and the sensitivity to international trade assumptions, finding that the aggregate of these effects were positive for the U.S. consumer but negative, due to declining crop prices, for producers. We examined the effects of potential changes in El Niño/Southern Oscillation (ENSO) and impacts on yield variability of changes in mean climate conditions. Increased losses occurred with ENSO intensity and frequency increases that could not be completely offset even if the events could be perfectly forecasted. Effects on yield variability of changes in mean temperatures were mixed. We also considered case study interactions of climate, agriculture, and the environment focusing on climate effects on nutrient loading to the Chesapeake Bay and groundwater depletion of the Edward's Aquifer that provides water for municipalities and agriculture to the San Antonio, Texas area. While only case studies, these results suggest environmental targets such as pumping limits and changes in farm practices to limit nutrient run-off would need to be tightened if current environmental goals were to be achieved under the climate scenarios we examined
Australian Journal of Agricultural and Resource Economics, 2010
This article empirically examines the impact of R&D and climate change on the Western Australian Agricultural sector using standard time series econometrics. Based on historical data for the period of 1977-2005, the empirical results show that both R&D and climate change matter for long-run productivity growth. The long-run elasticity of total factor productivity (TFP) with respect to R&D expenditure is 0.497, while that of climate change is 0.506. There is a unidirectional causality running from R&D expenditure to TFP growth in both the short run and long run. Further, the variance decomposition and impulse response function confirm that a significant portion of output and productivity growth beyond the sample period is explained by R&D expenditure. These results justify the increase in R&D investment in the deteriorating climatic condition in the agricultural sector to improve the long-run prospects of productivity growth.
2012
Agricultural productivity, and the degree to which other inputs (such as fertilizer, pesticides, and irrigation) are needed to augment production, depend a great deal on local climate conditions. Increases in average temperature, changes in precipitations patterns, and increases in the frequency of extreme weather events would significantly alter local production environment, through the distribution of crop yields, crop acreage planted to different crops, reliance on dryland and irrigated production systems, and the geographic range and severity of pest outbreaks. Changes in water availability for crop production will be an important factor affecting regional agricultural production. Shifting precipitation patterns in
Mitigation and Adaptation Strategies for Global Change, 2000
This paper presents a conceptual framework of the impact of climate change on agriculture. It assumes that climate change will result in a fertilization effect and a shift of agro-ecological conditions away from the Equator towards the Poles. The agro-ecological shift is likely to reduce yield because of reduced acreage and the fertilization effect will increase yield. The aggregate effect depends on whichever of the two dominates. The overall effect of climate change may be less significant than its distributional effects and the results are consistent with previous empirical studies. The impact of climate change depends on its pace. Faster changes in climate will result in higher cost. The assessment of the cost has to consider that climate change is a dynamic phenomenon that may require continuous adjustment. Environmental regulation that emphasizes conservation may increase cost of adjustment and environmental policies should emphasize adaptation and flexibility.
Frontiers in sustainable food systems, 2024
Climate change is expected to have differential impacts on different zones. In this study, we employed the Ricardian technique, estimated through ordinary least squares (OLS) to assess the impact of climate change on farmers' revenue. We use survey data from two distinct agroecological zones in Cameroon. Our results show that rainfall is the main climatic variable affecting farmers' revenue. The results are statistically different for the two agroecological zones. While rainfall in the dry season affects revenue in the western highland zone. No climatic variable seems to affect farm revenue in the bimodal forest zone. These results suggest that the abundance of forest in the bimodal zone maybe be shielding the zone from the effects of climate change. We therefore recommend that farmers employ water harvesting and low-cost irrigation methods to cope with changes in rainfall pattern especially in extended dry seasons. Facilitating farmers' access to climate information particularly with respect to the onset and cessation of rains will improve the planning of farm operations.
Climatic Change
Agricultural productivity in the Latin American and Caribbean (LAC) countries between 1961 and 2001 increased due to market regulation, economic openness, and estate reduction. In the six major sections of this chapter, we analyze the evolution of this productivity as well as the output and input growth for the agricultural and livestock sectors. We look closely at economic indicators related to food demand and population growth as well as total factor productivity growth for the region, with an emphasis on the Brazilian and Colombian agricultural sectors. We also discuss some sources of productivity growth, highlighting agricultural research, rural extension, schooling, and nutrition, and ultimately review income improvement and poverty reduction studies.
Sustainability, 2017
The Renewable Fuel Standard (RFS2), as implemented, has introduced uncertainty into US ethanol producers and the supporting commodity market. First, the fixed mandate for what is mainly cornstarch-based ethanol has increased feedstock price volatility and exerts a general effect across the agricultural sector. Second, the large discrepancy between the original Energy Independence and Security Act (EISA) intentions and the actual RFS2 implementation for some fuel classes has increased the investment uncertainty facing investors in biofuel production, distribution, and consumption. Here we discuss and analyze the sources of uncertainty and evaluate the effect of potential RFS2 adjustments as they influence these uncertainties. This includes the use of a flexible, production dependent mandate on corn starch ethanol. We find that a flexible mandate on cornstarch ethanol relaxed during drought could significantly reduce commodity price spikes and alleviate the decline of livestock production in cases of feedstock production shortfalls, but it would increase the risk for ethanol investors.
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