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Impacts of Climate Change and Extreme Weather on U.S. Agricultural Productivity Growth

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  • Wang, Sun Ling
  • Ball, Eldon
  • Nehring, Richard
  • Williams, Ryan
  • Chau, Truong

Abstract

We employ state panel data for the period 1961-2004 to identify the role of climate change on U.S. agricultural productivity growth using a stochastic production frontier method. We examine the patterns of productivity changes and weather variations across regions and over time. Climate variables are measured using temperature humidity index (THI) load and Oury index at both their means and the degree of deviation from their historical norm (shocks). We also incorporate irrigation ratio and local public goods—R&D, extension, and road infrastructure—to capture the effects of specific state characteristics and to check for the robustness of the estimates of climate variables’ impacts. Results indicate that higher THI load can drive farm production from its best performance using given inputs and best technology. On the other hand, a higher Oury index, irrigation ratio, local R&D, Extension, and road density can drive state overall farm production closer to the production frontier. In addition, weather “shock” variables seem to have more consistent and robust impacts in explaining technical inefficiency than do level variables.

Suggested Citation

  • Wang, Sun Ling & Ball, Eldon & Nehring, Richard & Williams, Ryan & Chau, Truong, 2014. "Impacts of Climate Change and Extreme Weather on U.S. Agricultural Productivity Growth," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 177170, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:177170
    DOI: 10.22004/ag.econ.177170
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    References listed on IDEAS

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    2. Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(2), pages 1-26, August.
    3. Paltasingh, Kirtti Ranjan & Goyari, Phanindra & Mishra, R.K., 2012. "Measuring Weather Impact on Crop Yield Using Aridity Index: Evidence from Odisha," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(2).
    4. V. Eldon Ball & Frank M. Gollop & Alison Kelly-Hawke & Gregory P. Swinand, 1999. "Patterns of State Productivity Growth in the U.S. Farm Sector: Linking State and Aggregate Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 164-179.
    5. Nigel Key & Stacy Sneeringer, 2014. "Potential Effects of Climate Change on the Productivity of U.S. Dairies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(4), pages 1136-1156.
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    Keywords

    Environmental Economics and Policy; Productivity Analysis;

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