IDEAS home Printed from https://ideas.repec.org/a/spr/climat/v177y2024i7d10.1007_s10584-024-03732-3.html
   My bibliography  Save this article

Impacts of climate change and agricultural diversification on agricultural production value of Thai farm households

Author

Listed:
  • Benjapon Prommawin

    (Chiang Mai University
    University of Cambridge)

  • Nattanun Svavasu

    (Chulalongkorn University
    Michigan State University)

  • Spol Tanpraphan

    (Chulalongkorn University
    Thailand Development Research Institute)

  • Voravee Saengavut

    (Khon Kaen University)

  • Theepakorn Jithitikulchai

    (Thammasat University)

  • Witsanu Attavanich

    (Kasetsart University)

  • Bruce A. McCarl

    (Texas A&M University)

Abstract

This paper examines how rising temperatures impact the agricultural production value of Thai farmers, compares potential adaptation strategies like agricultural diversification, and analyzes future projections based on IPCC AR6 scenarios. We analyze nationally representative socioeconomic survey data from farm households alongside ERA5 weather data, utilizing econometric regression analysis. Our analysis reveals that higher temperatures lead to a reduction in agricultural output value, with the situation expected to worsen as global warming progresses. Furthermore, we find that households with diversified production practices, such as a variety of agricultural activities or multicropping, exhibit a greater capacity to adapt to rising temperatures. These findings substantiate the importance of the country’s policies promoting integrated farming and diversified crop-mix strategies.

Suggested Citation

  • Benjapon Prommawin & Nattanun Svavasu & Spol Tanpraphan & Voravee Saengavut & Theepakorn Jithitikulchai & Witsanu Attavanich & Bruce A. McCarl, 2024. "Impacts of climate change and agricultural diversification on agricultural production value of Thai farm households," Climatic Change, Springer, vol. 177(7), pages 1-26, July.
  • Handle: RePEc:spr:climat:v:177:y:2024:i:7:d:10.1007_s10584-024-03732-3
    DOI: 10.1007/s10584-024-03732-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10584-024-03732-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10584-024-03732-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Moffitt, Robert, 1993. "Identification and estimation of dynamic models with a time series of repeated cross-sections," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 99-123, September.
    2. Stephen P. Jenkins & Richard V. Burkhauser & Shuaizhang Feng & Jeff Larrimore, 2011. "Measuring inequality using censored data: a multiple‐imputation approach to estimation and inference," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 174(1), pages 63-81, January.
    3. Mendelsohn, Robert & Nordhaus, William D & Shaw, Daigee, 1994. "The Impact of Global Warming on Agriculture: A Ricardian Analysis," American Economic Review, American Economic Association, vol. 84(4), pages 753-771, September.
    4. Makate, Clifton & Angelsen, Arild & Holden, Stein Terje & Westengen, Ola Tveitereid, 2023. "Evolution of farm-level crop diversification and response to rainfall shocks in smallholder farming: Evidence from Malawi and Tanzania," Ecological Economics, Elsevier, vol. 205(C).
    5. Chonabayashi, Shun & Jithitikulchai, Theepakorn & Qu, Yeqing, 2020. "Does agricultural diversification build economic resilience to drought and flood? Evidence from poor households in Zambia," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 15(1), March.
    6. Pence Karen M., 2006. "The Role of Wealth Transformations: An Application to Estimating the Effect of Tax Incentives on Saving," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-26.
    7. Forsyth, Tim & Evans, Natalie, 2013. "What is autonomous adaption? Resource scarcity and smallholder agency in Thailand," LSE Research Online Documents on Economics 45412, London School of Economics and Political Science, LSE Library.
    8. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.
    9. Warunsiri, Sasiwimon & McNown, Robert, 2010. "The Returns to Education in Thailand: A Pseudo-Panel Approach," World Development, Elsevier, vol. 38(11), pages 1616-1625, November.
    10. Samphantharak,Krislert & Townsend,Robert M., 2010. "Households as Corporate Firms," Cambridge Books, Cambridge University Press, number 9780521195829, September.
    11. Paul Gertler & Jonathan Gruber, 2002. "Insuring Consumption Against Illness," American Economic Review, American Economic Association, vol. 92(1), pages 51-70, March.
    12. Kazianga, Harounan & Udry, Christopher, 2006. "Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso," Journal of Development Economics, Elsevier, vol. 79(2), pages 413-446, April.
    13. Bruce A. McCarl & Xavier Villavicencio & Ximing Wu, 2008. "Climate Change and Future Analysis: Is Stationarity Dying?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1241-1247.
    14. Olivier Deschênes & Michael Greenstone, 2011. "Climate Change, Mortality, and Adaptation: Evidence from Annual Fluctuations in Weather in the US," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 152-185, October.
    15. Attavanich, Witsanu, 2018. "How Is Climate Change Affecting Thailand’s Agriculture? A Literature Review with Policy Update," MPRA Paper 90255, University Library of Munich, Germany, revised 12 Nov 2018.
    16. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
    17. Seo, S. Niggol, 2010. "Is an integrated farm more resilient against climate change? A micro-econometric analysis of portfolio diversification in African agriculture," Food Policy, Elsevier, vol. 35(1), pages 32-40, February.
    18. Pratap Singh Birthal & Pramod Kumar Joshi & Devesh Roy & Amit Thorat, 2013. "Diversification in Indian Agriculture toward High-Value Crops: The Role of Small Farmers," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 61(1), pages 61-91, March.
    19. Marc F. Bellemare & Casey J. Wichman, 2020. "Elasticities and the Inverse Hyperbolic Sine Transformation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(1), pages 50-61, February.
    20. Juan Sesmero & Jacob Ricker-Gilbert & Aaron Cook, 2018. "How Do African Farm Households Respond to Changes in Current and Past Weather Patterns? A Structural Panel Data Analysis from Malawi," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(1), pages 115-144.
    21. Chin-Hsien Yu & Bruce A. McCarl, 2018. "The Water Implications of Greenhouse Gas Mitigation: Effects on Land Use, Land Use Change, and Forestry," Sustainability, MDPI, vol. 10(7), pages 1-22, July.
    22. Mano, Reneth & Nhemachena, Charles, 2007. "Assessment of the economic impacts of climate change on agriculture in Zimbabwe : a ricardian approach," Policy Research Working Paper Series 4292, The World Bank.
    23. Stefan Dercon & Pramila Krishnan, 2000. "In Sickness and in Health: Risk Sharing within Households in Rural Ethiopia," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 688-727, August.
    24. Wolfram Schlenker & Michael J. Roberts, 2008. "Estimating the Impact of Climate Change on Crop Yields: The Importance of Nonlinear Temperature Effects," NBER Working Papers 13799, National Bureau of Economic Research, Inc.
    25. Molly E. Brown & Chris Funk & Diego Pedreros & Diriba Korecha & Melesse Lemma & James Rowland & Emily Williams & James Verdin, 2017. "A climate trend analysis of Ethiopia: examining subseasonal climate impacts on crops and pasture conditions," Climatic Change, Springer, vol. 142(1), pages 169-182, May.
    26. Arellano, Manuel, 2003. "Panel Data Econometrics," OUP Catalogue, Oxford University Press, number 9780199245291.
    27. Pipitpukdee, Siwabhorn & Attavanich, Witsanu & Bejranonda, Somskaow, 2020. "Climate Change Impacts on Sugarcane Production in Thailand," MPRA Paper 99796, University Library of Munich, Germany, revised 10 Apr 2020.
    28. Ding, Jinxiu & McCarl, Bruce A., 2014. "Inter-Decadal Climate Variability in the Edwards Aquifer: Regional Impacts of DCV on Crop Yields and Water Use," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170216, Agricultural and Applied Economics Association.
    29. Emmanuel Skoufias, 2012. "The Poverty and Welfare Impacts of Climate Change Quantifying the Effects, Identifying the Adaptation Strategies," World Bank Publications - Books, The World Bank Group, number 9384.
    30. Forsyth, Tim & Evans, Natalie, 2013. "What is Autonomous Adaption? Resource Scarcity and Smallholder Agency in Thailand," World Development, Elsevier, vol. 43(C), pages 56-66.
    31. Lowder, Sarah K. & Skoet, Jakob & Raney, Terri, 2016. "The Number, Size, and Distribution of Farms, Smallholder Farms, and Family Farms Worldwide," World Development, Elsevier, vol. 87(C), pages 16-29.
    32. Witsanu Attavanich & Bruce McCarl, 2014. "How is CO 2 affecting yields and technological progress? A statistical analysis," Climatic Change, Springer, vol. 124(4), pages 747-762, June.
    33. Jithitikulchai, Theepakorn & Mccarl, Bruce A. & Wu, Ximing, 2019. "Decadal Climate Variability Impacts On Climate And Crop Yields," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 51(1), pages 104-125, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jithitikulchai, Theepakorn, 2023. "The effect of climate change and agricultural diversification on the total value of agricultural output of farm households in Sub-Saharan Africa," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 18(2), October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jithitikulchai, Theepakorn, 2023. "The effect of climate change and agricultural diversification on the total value of agricultural output of farm households in Sub-Saharan Africa," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 18(2), October.
    2. Zhang, Hongliang & Mu, Jianhong E. & McCarl, Bruce A., 2018. "Adaptation to climate change via adjustment in land leasing: Evidence from dryland wheat farms in the U.S. Pacific Northwest," Land Use Policy, Elsevier, vol. 79(C), pages 424-432.
    3. Berenger Djoumessi Tiague, 2023. "Floods, Agricultural Production, and Household Welfare: Evidence from Tanzania," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(2), pages 341-384, June.
    4. Sam Fankhauser, 2017. "Adaptation to Climate Change," Annual Review of Resource Economics, Annual Reviews, vol. 9(1), pages 209-230, October.
    5. Severen, Christopher & Costello, Christopher & Deschênes, Olivier, 2018. "A Forward-Looking Ricardian Approach: Do land markets capitalize climate change forecasts?," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 235-254.
    6. Conning, Jonathan & Udry, Christopher, 2007. "Rural Financial Markets in Developing Countries," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 56, pages 2857-2908, Elsevier.
    7. Graff Zivin, Joshua & Song, Yingquan & Tang, Qu & Zhang, Peng, 2020. "Temperature and high-stakes cognitive performance: Evidence from the national college entrance examination in China," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).
    8. Sarker, Md. Abdur Rashid & Alam, Khorshed & Gow, Jeff, 2012. "Exploring the relationship between climate change and rice yield in Bangladesh: An analysis of time series data," Agricultural Systems, Elsevier, vol. 112(C), pages 11-16.
    9. Letta, Marco & Montalbano, Pierluigi & Tol, Richard S.J., 2018. "Temperature shocks, short-term growth and poverty thresholds: Evidence from rural Tanzania," World Development, Elsevier, vol. 112(C), pages 13-32.
    10. Robert G. Chambers & Simone Pieralli, 2020. "The Sources of Measured US Agricultural Productivity Growth: Weather, Technological Change, and Adaptation," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1198-1226, August.
    11. Islam, Asad & Nguyen, Chau, 2018. "Do networks matter after a natural disaster? A study of resource sharing within an informal network after Cyclone Aila," Journal of Environmental Economics and Management, Elsevier, vol. 90(C), pages 249-268.
    12. Islam, Asadul & Maitra, Pushkar, 2012. "Health shocks and consumption smoothing in rural households: Does microcredit have a role to play?," Journal of Development Economics, Elsevier, vol. 97(2), pages 232-243.
    13. Chen, Xiaoguang & Chen, Shuai, 2018. "China feels the heat: negative impacts of high temperatures on China’s rice sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(4), October.
    14. Pierre Mérel & Matthew Gammans, 2021. "Climate Econometrics: Can the Panel Approach Account for Long‐Run Adaptation?," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1207-1238, August.
    15. Juliano Assunção & Flávia Chein & Giovanni Leo Frisari & Sérgio Mikio Koyama, 2023. "Another Boiling Frog: the impact of climate-related events on financial outcomes in Brazil," Working Papers Series 572, Central Bank of Brazil, Research Department.
    16. Elena Paglialunga & Andrea Coveri & Antonello Zanfei, 2020. "Climate change and inequality in a global context. Exploring climate induced disparities and the reaction of economic systems," Working Papers 2003, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2020.
    17. Auffhammer, Maximilian, 2022. "Climate Adaptive Response Estimation: Short and long run impacts of climate change on residential electricity and natural gas consumption," Journal of Environmental Economics and Management, Elsevier, vol. 114(C).
    18. Bassino, Jean-Pascal & Lagoarde-Segot, Thomas & Woitek, Ulrich, 2020. "The irreversible welfare cost of climate anomalies. Evidence from Japan (1872-1917)," Discussion Paper Series 704, Institute of Economic Research, Hitotsubashi University.
    19. Tesfamicheal Wossen & Salvatore Falco & Thomas Berger & William McClain, 2016. "You are not alone: social capital and risk exposure in rural Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(4), pages 799-813, August.

    More about this item

    Keywords

    Climate change; Agricultural diversification; Agricultural households; Climate resilience; Irrigation; Sustainable development;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:climat:v:177:y:2024:i:7:d:10.1007_s10584-024-03732-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.