Do Temperature Thresholds Threaten American Farmland?

29 Pages Posted: 19 Sep 2017

See all articles by Emanuele Massetti

Emanuele Massetti

Georgia Institute of Technology; CESifo (Center for Economic Studies and Ifo Institute); CMCC - Euro Mediterranean Centre for Climate Change

Robert O. Mendelsohn

Yale University - School of Forestry & Environmental Studies; Yale University

Date Written: September 18, 2017

Abstract

Estimated Ricardian models have been criticized because they rely on mean temperatures and do not explicitly include extreme temperatures. This paper uses a cross sectional approach to compare a standard quadratic Ricardian model of mean temperature with a fully flexible daily temperature bin model of farmland values in the Eastern United States. The flexible bin model leads to smaller damages from warming than the quadratic mean specification, but the difference is not statistically significant. Although weather panel studies find high temperature events lead to large annual damage, high temperature events have no harmful effect on farmland values. The results are robust to alternative model specifications and data sets.

Keywords: Agriculture, Climate Change, Weather, Crop Yields, Ricardian, Threshold

JEL Classification: Q1, Q5

Suggested Citation

Massetti, Emanuele and Mendelsohn, Robert O., Do Temperature Thresholds Threaten American Farmland? (September 18, 2017). FEEM Working Paper No. 43.2017. Available at SSRN: https://ssrn.com/abstract=3038725 or http://dx.doi.org/10.2139/ssrn.3038725

Emanuele Massetti (Contact Author)

Georgia Institute of Technology ( email )

685 Cherry St.
Atlanta, GA 30332-0345
United States

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

CMCC - Euro Mediterranean Centre for Climate Change

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Robert O. Mendelsohn

Yale University - School of Forestry & Environmental Studies ( email )

195 Prospect Street
New Haven, CT 06511
United States

Yale University ( email )

New Haven, CT 06520
United States
2034325128 (Phone)

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