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Can a Warmer Climate Save Northern Agriculture?

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  • Gaasland, Ivar

Abstract

Agriculture at high latitudes is expected to be a main beneficiary of a man-made climate change. A numerical model, using Norway as a case, is employed to analyze the impacts of a warmer climate on northern agriculture. The computations indicate that the current degree of self-sufficiency can be achieved with less budget support and higher economic welfare. However, it may be argued that environmental goods, such as landscape and biodiversity preservation, and rural settlement, are more important than self-sufficiency for northern agriculture. It is demonstrated that, in that case, welfare gains are substantially lower, and can even be negative.

Suggested Citation

  • Gaasland, Ivar, 2005. "Can a Warmer Climate Save Northern Agriculture?," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24551, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24551
    DOI: 10.22004/ag.econ.24551
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    References listed on IDEAS

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    1. Mendelsohn, Robert & Dinar, Ariel, 1999. "Climate Change, Agriculture, and Developing Countries: Does Adaptation Matter?," The World Bank Research Observer, World Bank, vol. 14(2), pages 277-293, August.
    2. Rolf Jens Brunstad & Ivar Gaasland & Erling Vårdal, 1995. "Agriculture as a provider of public goods: a case study for Norway," Agricultural Economics, International Association of Agricultural Economists, vol. 13(1), pages 39-49, October.
    3. Rolf Jens Brunstad & Ivar Gaasland & Erling Vårdal, 1999. "Agricultural Production and the Optimal Level of Landscape Preservation (," Land Economics, University of Wisconsin Press, vol. 75(4), pages 538-546.
    4. Reilly, John & Hohmann, Neil, 1993. "Climate Change and Agriculture: The Role of International Trade," American Economic Review, American Economic Association, vol. 83(2), pages 306-312, May.
    5. K. Sato, 1967. "A Two-Level Constant-Elasticity-of-Substitution Production Function," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(2), pages 201-218.
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