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Impact Of Climate Change On The Net Revenue Of Major Crop Growing Farmers In Pakistan: A Ricardian Approach

Author

Listed:
  • ATTA ULLAH KHAN

    (Department of Economics, Allama Iqbal Open University (AIOU), Islamabad 44000, Pakistan)

  • AADIL HAMEED SHAH

    (Department of Economics, Government Degree College, Ban Hafiz Jee, Mianwali, Punjab, Pakistan)

  • MUHAMMAD IFTIKHAR-UL-HUSNAIN

    (Department of Economics, COMSATS University Islamabad, Tarlai Kalan, Islamabad, Pakistan)

Abstract

Climate change has severely affected the crops’ productivity during the last few decades across the agrarian economies of the world, thereby resulting in a considerable loss per farmer in the yearly net revenue. Pakistan’s agriculture is sensitive to warming and it experienced an adverse effect in the net farm revenue (NFR). This study primarily predicts the adverse climate effects and estimates the NFR of the farmers of five major crops (wheat, rice, cotton, sugarcane and maize) in two different seasons, winter (Rabbi) and summer (Kharif), in Pakistan. This study is based upon the secondary cross-sectional data [Household Integrated Economic Survey of Pakistan (HIES), 2015–2016] along with the time series data regarding climatic variables from 1981 to 2016. A well-established Ricardian approach has been employed to test the association between net revenue of the farmer and climatic variability. Results of overall study conclude that increases in average summer (winter) temperature and average winter (summer) rainfall have adverse (favorable) impacts on all of the crops’ productivity during both seasons, winter (Rabbi) and summer (Kharif), in Pakistan, thus leading to a decline (an increase) in NFR. Future increases in temperature will be harmful and may lead to significant loss in the revenue amount. The analysis of adaptation techniques exhibits beneficial impacts on the NFR and it is concluded that adaptations are helpful tool for the farmers to minimize revenue loss.

Suggested Citation

  • Atta Ullah Khan & Aadil Hameed Shah & Muhammad Iftikhar-Ul-Husnain, 2021. "Impact Of Climate Change On The Net Revenue Of Major Crop Growing Farmers In Pakistan: A Ricardian Approach," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 12(02), pages 1-23, May.
    • Handle: RePEc:wsi:ccexxx:v:12:y:2021:i:02:n:s2010007821500068
    DOI: 10.1142/S2010007821500068
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    Citations

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    Cited by:

    1. Aadil Hameed Shah & Atta Ullah Khan & Liurong Pan & Asad Amin & Abbas Ali Chandio, 2022. "Reflections of Pro-Poor Growth across Agro-Climatic Zones for Farming and Non-Farming Communities: Evidence from Punjab, Pakistan," IJERPH, MDPI, vol. 19(9), pages 1-16, May.
    2. Zaman, Qamar uz & Zhao, Yuhuan & Zaman, Shah & Shah, Aadil Hameed, 2023. "Examining the symmetrical effect of traditional energy resources, industrial production, and poverty lessening on ecological sustainability: Policy track in the milieu of five neighboring Asian econom," Resources Policy, Elsevier, vol. 83(C).
    3. Thiago Vizine Da Cruz & Ricardo Luiz Machado, 2023. "Increasing Sugarcane Production Eco-Efficiency: A DEA Analysis with Different Sugarcane Varieties," Sustainability, MDPI, vol. 15(14), pages 1-22, July.
    4. Zaman, Qamar uz & Zhao, Yuhuan & Zaman, Shah & Alenezi, Marim & Jehan, Noor, 2023. "Spatial evaluation of multidimensional energy poverty between farming and non-farming communities of agro-climatic zones of Pakistan," Energy Policy, Elsevier, vol. 172(C).

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