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Adaptation and Climate Change Impacts: A Structural Ricardian Analysis of Farm Types in Germany

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  • Thomas Chatzopoulos
  • Christian Lippert

Abstract

type="main" xml:id="jage12098-abs-0001"> Based on farm census data, we explore the climate-dependent incidence of six farm types and the climate-induced impacts on land rental prices in Germany. We apply a structural Ricardian approach by modeling the dominant farm type at 9,684 communities as depending on temperature, precipitation and other geographic variables. Rents per farm type are then modeled as depending on climate and other conditioning variables. These results allow the projection of the consequences of climate change as changes in our climate variables. Our results indicate that permanent-crop farms are more likely to dominate in higher temperatures, whereas forage or mixed farms dominate in areas of higher precipitation levels. Land rental prices display a concave response to increases in annual precipitation, and appear to increase linearly with rising annual temperature. Moderate-warming simulation results for future decades benefit most farm types but seem to penalise forage farms. Rental prices are projected to increase, ceteris paribus, for all farm types.

Suggested Citation

  • Thomas Chatzopoulos & Christian Lippert, 2015. "Adaptation and Climate Change Impacts: A Structural Ricardian Analysis of Farm Types in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(2), pages 537-554, June.
    • Handle: RePEc:bla:jageco:v:66:y:2015:i:2:p:537-554
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    File URL: http://hdl.handle.net/10.1111/jage.2015.66.issue-2
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    Cited by:

    1. Maria Belyaeva & Raushan Bokusheva, 2018. "Will climate change benefit or hurt Russian grain production? A statistical evidence from a panel approach," Climatic Change, Springer, vol. 149(2), pages 205-217, July.
    2. Trinh Nguyen Chau & Frank Scrimgeour, 2023. "Will climate change jeopardize the Vietnamese target of maintaining farmland for food security? A fractional multinomial logit analysis of land use choice," Agricultural Economics, International Association of Agricultural Economists, vol. 54(4), pages 570-587, July.
    3. Martina Bozzola & Emanuele Massetti & Robert Mendelsohn & Fabian Capitanio, 2018. "A Ricardian analysis of the impact of climate change on Italian agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 45(1), pages 57-79.
    4. Chun-Chang Lee & Yi-Xin Chen & Yun-Ling Wu & Wen-Chih Yeh & Chih-Min Liang, 2020. "Multilevel Analysis of the Pressure of Agricultural Land Conversion, Degree of Urbanization and Agricultural Land Prices in Taiwan," Land, MDPI, vol. 9(12), pages 1-21, November.
    5. Prince Etwire & David Fielding & Victoria Kahui, 2017. "The impact of climate change on crop production in Ghana: A Structural Ricardian analysis," Working Papers 1706, University of Otago, Department of Economics, revised Apr 2017.
    6. Byela Tibesigwa & Martine Visser & Jane Turpie, 2017. "Climate change and South Africa’s commercial farms: an assessment of impacts on specialised horticulture, crop, livestock and mixed farming systems," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(2), pages 607-636, April.
    7. Stefan Seifert & Christoph Kahle & Silke Hüttel, 2021. "Price Dispersion in Farmland Markets: What Is the Role of Asymmetric Information?," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1545-1568, August.
    8. Belyaeva, Maria & Bokusheva, Raushan, 2017. "Will climate change benefit or hurt Russian grain production? A statistical evidence from a panel approach [Wird der Klimawandel der russischen Getreideproduktion nutzen oder schaden? Statistische ," IAMO Discussion Papers 161, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    9. Etwire, Prince Maxwell, 2020. "The impact of climate change on farming system selection in Ghana," Agricultural Systems, Elsevier, vol. 179(C).
    10. Charlotte Fabri & Michele Moretti & Steven Van Passel, 2022. "On the (ir)relevance of heatwaves in climate change impacts on European agriculture," Climatic Change, Springer, vol. 174(1), pages 1-20, September.
    11. Zeilinger, Julian & Niedermayr, Andreas & Quddoos, Abdul & Kantelhardt, Jochen, 2021. "Identifying the Extent of Farm-Level Climate Change Adaptation," 2021 Conference, August 17-31, 2021, Virtual 315233, International Association of Agricultural Economists.
    12. Lars Isenhardt & Stefan Seifert & Silke Hüttel, 2023. "Tenant Favoritism and Right of First Refusals in Farmland Auctions: Competition and Price Effects," Land Economics, University of Wisconsin Press, vol. 99(2), pages 302-324.
    13. Belyaeva, Maria & Bokusheva, Raushan, 2017. "Will climate change benefit or hurt Russian grain production? A statistical evidence from a panel approach," IAMO Discussion Papers 253788, Institute of Agricultural Development in Transition Economies (IAMO).
    14. Prince M. Etwire & David Fielding & Viktoria Kahui, 2019. "Climate Change, Crop Selection and Agricultural Revenue in Ghana: A Structural Ricardian Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(2), pages 488-506, June.
    15. Shahbaz Mushtaq & Jarrod Kath & Roger Stone & Ross Henry & Peter Läderach & Kathryn Reardon-Smith & David Cobon & Torben Marcussen & Neil Cliffe & Paul Kristiansen & Frederik Pischke, 2020. "Creating positive synergies between risk management and transfer to accelerate food system climate resilience," Climatic Change, Springer, vol. 161(3), pages 465-478, August.
    16. repec:zbw:iamodp:253788 is not listed on IDEAS

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