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Climate change influences on agricultural research productivity

2013, Climatic Change

Abstract

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.