IDEAS home Printed from https://ideas.repec.org/a/wly/apecpp/v44y2022i3p1409-1423.html
   My bibliography  Save this article

Estimating temperature impacts on perennial crop losses in California: Insights from insurance data

Author

Listed:
  • Jisang Yu
  • Gyuhyeong Goh

Abstract

This study provides a novel empirical framework for estimating the effects of temperature on the production of several tree crops in California by using underused insurance data and a variable selection technique. We utilize a Bayesian variable selection technique to select relevant temperature variables. We then use the selected temperature variables to assess the temperature effects on crop losses. We find that a greater length to freeze exposure increases crop losses and relatively smaller roles of chill hours and heating hours. We also find the heterogeneity of the effects across insurance coverage levels.

Suggested Citation

  • Jisang Yu & Gyuhyeong Goh, 2022. "Estimating temperature impacts on perennial crop losses in California: Insights from insurance data," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1409-1423, September.
    • Handle: RePEc:wly:apecpp:v:44:y:2022:i:3:p:1409-1423
    DOI: 10.1002/aepp.13222
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/aepp.13222
    Download Restriction: no
    File URL: https://libkey.io/10.1002/aepp.13222?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
    ---><---

    References listed on IDEAS

    as
    1. Wooldridge, Jeffrey M., 1999. "Distribution-free estimation of some nonlinear panel data models," Journal of Econometrics, Elsevier, vol. 90(1), pages 77-97, May.
    2. Juan He & Roderick Rejesus & Xiaoyong Zheng & Jose Yorobe, 2018. "Advantageous Selection in Crop Insurance: Theory and Evidence," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(3), pages 646-668, September.
    3. Edward D. Perry & Jisang Yu & Jesse Tack, 2020. "Using insurance data to quantify the multidimensional impacts of warming temperatures on yield risk," Nature Communications, Nature, vol. 11(1), pages 1-9, December.
    4. David Lobell & Angela Torney & Christopher Field, 2011. "Climate extremes in California agriculture," Climatic Change, Springer, vol. 109(1), pages 355-363, December.
    5. David Lobell & Christopher Field, 2011. "California perennial crops in a changing climate," Climatic Change, Springer, vol. 109(1), pages 317-333, December.
    6. Joseph W. Glauber, 2013. "The Growth Of The Federal Crop Insurance Program, 1990--2011," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(2), pages 482-488.
    7. Hyunok Lee & Daniel Sumner, 2015. "Economics of downscaled climate-induced changes in cropland, with projections to 2050: evidence from Yolo County California," Climatic Change, Springer, vol. 132(4), pages 723-737, October.
    8. Yu, Jisang & Sumner, Daniel A. & Lee, Hyunok, 2021. "Premium rates and selection in specialty crop insurance markets: Evidence from the catastrophic coverage participation," Food Policy, Elsevier, vol. 101(C).
    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. Bingxia Wang & Mohd Azmi Haron & Zailan Siri, 2024. "The Impact of Air Pollution Risk on the Sustainability of Crop Insurance Losses," Sustainability, MDPI, vol. 16(19), pages 1-23, 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. Amber Kerr & Jake Dialesandro & Kerri Steenwerth & Nathan Lopez-Brody & Emile Elias, 2018. "Vulnerability of California specialty crops to projected mid-century temperature changes," Climatic Change, Springer, vol. 148(3), pages 419-436, June.
    2. Jisang Yu & Edward D. Perry, 2024. "Premium subsidies and selection in the federal crop insurance program," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(1), pages 280-297, February.
    3. Guido Franco & Daniel Cayan & Susanne Moser & Michael Hanemann & Myoung-Ae Jones, 2011. "Second California Assessment: integrated climate change impacts assessment of natural and managed systems. Guest editorial," Climatic Change, Springer, vol. 109(1), pages 1-19, December.
    4. Tsiboe, Francis & Turner, Dylan, 2023. "The crop insurance demand response to premium subsidies: Evidence from U.S. Agriculture," Food Policy, Elsevier, vol. 119(C).
    5. Juan He & Xiaoyong Zheng & Roderick Rejesus & Jose Yorobe, 2020. "Input use under cost‐of‐production crop insurance: Theory and evidence," Agricultural Economics, International Association of Agricultural Economists, vol. 51(3), pages 343-357, May.
    6. Perry, Edward & Yu, Jisang & Tack, Jesse B., "undated". "Estimating Temperature Effects on the Cost of the Federal Crop Insurance Program," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259961, Agricultural and Applied Economics Association.
    7. Yu, Jisang & Sumner, Daniel A. & Lee, Hyunok, 2021. "Premium rates and selection in specialty crop insurance markets: Evidence from the catastrophic coverage participation," Food Policy, Elsevier, vol. 101(C).
    8. Ruggiero Rippo & Simone Cerroni, 2023. "Farmers' participation in the Income Stabilisation Tool: Evidence from the apple sector in Italy," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 273-294, February.
    9. Bono, Pierre-Henri & David, Quentin & Desbordes, Rodolphe & Py, Loriane, 2022. "Metro infrastructure and metropolitan attractiveness," Regional Science and Urban Economics, Elsevier, vol. 93(C).
    10. Iain M. Cockburn & Megan J. MacGarvie, 2011. "Entry and Patenting in the Software Industry," Management Science, INFORMS, vol. 57(5), pages 915-933, May.
    11. Nathan Craig & Nicole DeHoratius & Ananth Raman, 2016. "The Impact of Supplier Inventory Service Level on Retailer Demand," Manufacturing & Service Operations Management, INFORMS, vol. 18(4), pages 461-474, October.
    12. Piyapas Tharavanij, 2007. "Capital Market, Frequency Of Recession, And Fraction Of Time The Economy In Recession," Monash Economics Working Papers 34-07, Monash University, Department of Economics.
    13. Breinlich, Holger, 2008. "Trade liberalization and industrial restructuring through mergers and acquisitions," Journal of International Economics, Elsevier, vol. 76(2), pages 254-266, December.
    14. Hussinger, Katrin & Pellens, Maikel, 2019. "Guilt by association: How scientific misconduct harms prior collaborators," Research Policy, Elsevier, vol. 48(2), pages 516-530.
    15. Schertler, Andrea & Tykvová, Tereza, 2011. "Venture capital and internationalization," International Business Review, Elsevier, vol. 20(4), pages 423-439, August.
    16. Yu, Jisang & Hendricks, Nathan P., 2017. "Crop Insurance Moral Hazard from Price and Weather Forecasts," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258336, Agricultural and Applied Economics Association.
    17. Semken, Christoph & Hay, Colin, 2021. "Gauging the gravity of the situation: The use and abuse of expertise in estimating the economic costs of Brexit," MaxPo Discussion Paper Series 21/3, Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo).
    18. Czarnitzki, Dirk & Doherr, Thorsten & Hussinger, Katrin & Schliessler, Paula & Toole, Andrew A., 2016. "Knowledge Creates Markets: The influence of entrepreneurial support and patent rights on academic entrepreneurship," European Economic Review, Elsevier, vol. 86(C), pages 131-146.
    19. Ming, Yaxin & Deng, Huixin & Wu, Xiaoyue, 2022. "The negative effect of air pollution on people's pro-environmental behavior," Journal of Business Research, Elsevier, vol. 142(C), pages 72-87.
    20. Hardy, Wojciech, 2021. "Displacement from piracy in the American comic book market," Information Economics and Policy, Elsevier, vol. 57(C).

    More about this item

    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:wly:apecpp:v:44:y:2022:i:3:p:1409-1423. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)2040-5804 .

    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.