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Climate change, production and trade in apples

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  • Bruno Larue
  • Alan P. Ker

Abstract

In this paper, we investigate the impacts of climate extremes on the production and trade of apples. Apple production being notoriously sensitive to climate shocks, we show that March and April temperatures and precipitations beyond estimated thresholds cause large yield reductions in Quebec and Ontario. In years when climate shocks are large and highly correlated across space, large variations in national production cause major variations in trade flows. Hence, we exploit the theoretical foundations of a sectoral structural gravity model to implement counterfactual trade experiments about harvest shocks in Canada and the United States. We report changes in tariffs, imports, exports, farmgate prices, and in consumer welfare. The shocks greatly impact trade between North American countries but have little impact on other countries except for Chile and New Zealand which see their exports grow. Nous étudions les impacts des extrêmes climatiques sur la production et le commerce des pommes. La production étant notoirement sensible aux chocs climatiques, nous montrons que des températures et précipitations en mars et avril au‐delà de seuils estimés engendrent de larges baisses de rendements au Québec et en Ontario. Nous montrons que lorsque les chocs climatiques sont substantiels et fortement corrélés dans l'espace, d’énormes variations dans la production engendrent des changements majeurs dans le commerce. Donc, nous exploitions les fondations théoriques d'un modèle gravitaire structurel sectoriel pour mener des expériences contrefactuelles, rapportant les changements dans les tarifs, les importations, les exportations, les prix à la ferme et le bien‐être des consommateurs induits par des chocs sur les récoltes canadiennes et américaines. Ces chocs engendrent de grands changements sur le commerce des pays d'Amérique du Nord, mais ont peu d'effet sur la majorité des autres pays, à part le Chili et la Nouvelle‐Zélande voient leurs exportations augmenter.

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  • Bruno Larue & Alan P. Ker, 2024. "Climate change, production and trade in apples," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 72(3), pages 325-346, September.
  • Handle: RePEc:bla:canjag:v:72:y:2024:i:3:p:325-346
    DOI: 10.1111/cjag.12367
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    References listed on IDEAS

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    1. Derek Brewin & Ryan Cardwell & Alan P. Ker, 2024. "Introduction to the special issue in honor of the late Dr. James Rude," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 72(3), pages 209-211, September.

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