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A RICARDIAN ANALYSIS OF CLIMATE CHANGE IMPACTS ON JAPAN’s AGRICULTURE: ACCOUNTING FOR SOLAR RADIATION

Author

Listed:
  • IORI OKAMURA

    (Organization for the Strategic Coordination of Research and Intellectual Property, Meiji University, 1-1-1 Higashi-Mita, Tama-ku, Kawasaki-shi, Kanagawa, Japan)

  • STEVEN VAN PASSEL

    (Department Engineering Management, University of Antwerp, Prinsstraat 13, 2000 Antwerpen, Belgium)

  • CHARLOTTE FABRI

    (Department Engineering Management, University of Antwerp, Prinsstraat 13, 2000 Antwerpen, Belgium)

  • TETSUJI SENDA

    (Academic Center for Computing and Media Studies, Kyoto University, Yoshida-honmachi, Sakyo-ku, Kyoto, Japan)

Abstract

This study evaluates the effects of climate change on the net revenue of farmers in Japan. We adopted the Ricardian model, which implicitly accounts for farmers’ full adaptation. The main findings of this study are as follows. First, the Ricardian regression shows that changes in temperature significantly impact farmers’ net revenue. In contrast, changes in precipitation have limited effects on farmers’ net revenue. The results of future predictions showed that the effects of climate change are positive across the country, with varying degrees between north and south. These results are more optimistic than those in the existing literature, which frequently reveal negative climate change impacts in southern Japan. However, it should be noted that this model assumes full adaptation and does not consider the transition costs of farmers, and understanding the actual adaptive measures is an important remaining issue.

Suggested Citation

  • Iori Okamura & Steven Van Passel & Charlotte Fabri & Tetsuji Senda, 2024. "A RICARDIAN ANALYSIS OF CLIMATE CHANGE IMPACTS ON JAPAN’s AGRICULTURE: ACCOUNTING FOR SOLAR RADIATION," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 15(03), pages 1-22, August.
    • Handle: RePEc:wsi:ccexxx:v:15:y:2024:i:03:n:s2010007823500227
    DOI: 10.1142/S2010007823500227
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