Is Western European Agriculture Resilient to High Temperatures?

37 Pages Posted: 21 Feb 2019

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

Steven Van Passel

Hasselt University

Camila Apablaza

Georgia Institute of Technology

Date Written: 2018

Abstract

We estimate a Ricardian model of Western European agricultural land values using farm-level data. We model the effect of temperature on land values using a flexible specification of daily mean temperature to test if there are temperature threshold effects. Results indicate that there are no temperature thresholds beyond which agricultural land values suddenly drop. The results are robust to alternative model specifications. Adaptation explains why a smooth aggregate response function is compatible with sharply non-linear crop yield functions. With adaptation, the effect of warming on Western European agriculture is likely to be smooth.

Keywords: agriculture, climate change, extreme temperature, Ricardian, threshold, Europe

JEL Classification: Q120, Q210, Q510, Q540

Suggested Citation

Massetti, Emanuele and Van Passel, Steven and Apablaza, Camila, Is Western European Agriculture Resilient to High Temperatures? (2018). CESifo Working Paper No. 7286. Available at SSRN: https://ssrn.com/abstract=3338611

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

Steven Van Passel

Hasselt University ( email )

Agoralaan 30, Building D
Diepenbeek, 3590
Belgium

Camila Apablaza

Georgia Institute of Technology ( email )

Atlanta, GA 30332
United States

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