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Global Warming and German Agriculture Impact Estimations Using a Restricted Profit Function

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  • Günter Lang

Abstract

This study uses the concept of shadow prices formeasuring the impacts of climate change. By estimatinga restricted profit function rather than a cost or aproduction function the explanatory power of the modelis increased because of an endogenous outputstructure. Using low aggregated panel data on WesternGerman farmers, the results imply that the agricultural production process is significantly influenced by climate conditions. Simulation results using a 2 ×CO 2 climate scenario show positive impactsfor all regions in Germany. Interestingly, the spatialdistribution of the gains is indicating no advantagefor those regions, which currently suffer frominsufficient temperature. Finally, the importance ofan endogenous output structure is confirmed by thefinding that the desired product mix will drasticallychange. Copyright Kluwer Academic Publishers 2001

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  • Günter Lang, 2001. "Global Warming and German Agriculture Impact Estimations Using a Restricted Profit Function," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(2), pages 97-112, June.
    • Handle: RePEc:kap:enreec:v:19:y:2001:i:2:p:97-112
    DOI: 10.1023/A:1011178931639
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    Cited by:

    1. Denisard Alves & Paula Pereda, 2019. "Climate and Weather Impacts on Agriculture: The Case of Brazil," Working Papers, Department of Economics 2019_23, University of São Paulo (FEA-USP).
    2. Molua, Ernest L. & Benhin, James K.A. & Kabubo-Mariara, Jane & Ouedraogo, Mathieu & El-Marsafawy, Samia, 2010. "Global climate change and vulnerability of African agriculture: implications for resilience and sustained productive capacity," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 49(3), pages 1-29.
    3. Rajapaksha P. D. Gunathilaka & James C. R. Smart & Christopher M. Fleming & Syezlin Hasan, 2018. "The impact of climate change on labour demand in the plantation sector: the case of tea production in Sri Lanka," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(3), pages 480-500, July.

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