A Ricardian Analysis of the Impact of Climate Change on Latin American Farms

46 Pages Posted: 20 Apr 2016

See all articles by S. Niggol Seo

S. Niggol Seo

Muaebak Institute of Global Warming Studies

Robert O. Mendelsohn

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

Date Written: March 1, 2007

Abstract

This study estimates the vulnerability of Latin American agriculture to climate change using a Ricardian analysis of both land values and net revenues. Examining a sample of over 2,500 farms in seven countries, the results indicate both land value and net revenue are sensitive to climate. Both small farms and large farms have a hill-shaped relationship with temperature. Estimating separate regressions for dryland and irrigated farms reveals that dryland farms are more sensitive to temperature but irrigated farms are more sensitive to precipitation. Examining the effects from future climate change scenarios reveals that severe scenarios could reduce farm earnings by as much as 62 percent by 2100, whereas more moderate scenarios could reduce earnings by about 15 percent. Small and large farms are equally sensitive to global warming. Land value and net revenue analyses produce quite similar results.

Keywords: Climate Change, Rural Development Knowledge & Information Systems, Agriculture & Farming Systems, Crops & Crop Management Systems, Common Property Resource Development

Suggested Citation

Seo, S. Niggol and Mendelsohn, Robert O., A Ricardian Analysis of the Impact of Climate Change on Latin American Farms (March 1, 2007). World Bank Policy Research Working Paper No. 4163. Available at SSRN: https://ssrn.com/abstract=969240

S. Niggol Seo (Contact Author)

Muaebak Institute of Global Warming Studies ( email )

Seorim-dong
Gwanak-gu
Seoul
Korea, Republic of (South Korea)

HOME PAGE: http://www.muaebakinstitute.org/s.niggol-seo.html

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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