Importing Inputs for Climate Change Mitigation: The Case of Agricultural Productivity

37 Pages Posted: 16 Feb 2019 Last revised: 24 Apr 2021

See all articles by Rodrigo García-Verdú

Rodrigo García-Verdú

International Monetary Fund

Alexis Meyer-Cirkel

Goethe University Frankfurt

Akira Sasahara

Keio University

Hans Weisfeld

International Monetary Fund (IMF)

Date Written: April 8, 2021

Abstract

This paper investigates the effects of temperature on agricultural TFP growth rates during the period 1992-2015. We argue that higher temperatures impede TFP growth, particularly in low-income countries (LICs) using less imported inputs. Our estimates imply that a one degree Celsius rise in annual average temperatures reduces TFP growth rates by 5.2 percentage points in the LICs in question. However, LICs using greater amounts of imported inputs are less affected by temperatures, suggesting a new source of gains from imported inputs mitigating the adverse effects of rising temperatures.

Keywords: Agricultural Productivity, TFP, Imported Inputs, Weather Shocks

JEL Classification: F14, F18, Q17, Q54

Suggested Citation

García-Verdú, Rodrigo and Meyer-Cirkel, Alexis and Sasahara, Akira and Weisfeld, Hans, Importing Inputs for Climate Change Mitigation: The Case of Agricultural Productivity (April 8, 2021). Available at SSRN: https://ssrn.com/abstract= or http://dx.doi.org/10.2139/ssrn.3329528

Rodrigo García-Verdú

International Monetary Fund ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Alexis Meyer-Cirkel

Goethe University Frankfurt ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

Akira Sasahara (Contact Author)

Keio University ( email )

2-15-45 Mita, Ninato-ku
Tokyo 1088345
Japan

Hans Weisfeld

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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