IDEAS home Printed from https://ideas.repec.org/p/cdl/agrebk/qt8q8309qn.html
   My bibliography  Save this paper

Water Availability, Degree Days, and the Potential Impact of Climate Change on Irrigated Agriculture in California

Author

Listed:
  • Schlenker, Wolfram
  • Hanemann, W Michael
  • Fisher, Anthony C

Abstract

We use the geo-referenced June Agricultural Survey of the U.S. Department of Agriculture to match values of individual farms in California with a measure of water availability as mediated through irrigation districts, and degree days, a nonlinear transformation of temperature, controlling for other influences on value such as soil quality, to examine the potential effects of climate change on irrigated agriculture in California. Water availability strongly capitalizes into farmland values. The predicted decrease in water availability in the latest climate change scenarios downscaled to California can therefore be expected to have a significant negative impact on the value of farmland. © 2007 Springer Science+Business Media, Inc.

Suggested Citation

  • Schlenker, Wolfram & Hanemann, W Michael & Fisher, Anthony C, 2007. "Water Availability, Degree Days, and the Potential Impact of Climate Change on Irrigated Agriculture in California," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt8q8309qn, Department of Agricultural & Resource Economics, UC Berkeley.
    • Handle: RePEc:cdl:agrebk:qt8q8309qn
    as

    Download full text from publisher

    File URL: https://www.escholarship.org/uc/item/8q8309qn.pdf;origin=repeccitec
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Deschenes, Olivier & Greenstone, Michael, 2004. "The Economic Impacts of Climate Change: Evidence from Agricultural Profits and Random Fluctuations in Weather," University of California at Santa Barbara, Economics Working Paper Series qt6w7242cj, Department of Economics, UC Santa Barbara.
    2. Whittlesey, Norman K. & Herrell, Jon P., 1987. "Impacts Of Energy Cost Increases On Irrigated Land Values," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(1), pages 1-7, July.
    3. Leamer, Edward E, 1983. "Let's Take the Con Out of Econometrics," American Economic Review, American Economic Association, vol. 73(1), pages 31-43, March.
    4. Wolfram Schlenker & W. Michael Hanemann & Anthony C. Fisher, 2006. "The Impact of Global Warming on U.S. Agriculture: An Econometric Analysis of Optimal Growing Conditions," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 113-125, February.
    5. L. M. Hartman & R. L. Anderson, 1962. "Estimating the Value of Irrigation Water from Farm Sales Data in Northeastern Colorado," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 44(1), pages 207-213.
    6. Robert Mendelsohn & Ariel Dinar, 2003. "Climate, Water, and Agriculture," Land Economics, University of Wisconsin Press, vol. 79(3), pages 328-341.
    7. Yair Mundlak, 1961. "Empirical Production Function Free of Management Bias," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 43(1), pages 44-56.
    8. Ray G. Huffaker & B. Delworth Gardner, 1986. "The Distribution of Economic Rents Arising from Subsidized Water When Land Is Leased," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 306-312.
    9. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    10. Schlenker, Wolfram & Hanemann, W. Michael & Fisher, Anthony C, 2004. "The impact of global warming on U.S. agriculture: an econometric analysis of optimal growing conditions," CUDARE Working Paper Series 1003, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
    11. John Faux & Gregory M. Perry, 1999. "Estimating Irrigation Water Value Using Hedonic Price Analysis: A Case Study in Malheur County, Oregon," Land Economics, University of Wisconsin Press, vol. 75(3), pages 440-452.
    12. Jan P. Crouter, 1987. "Hedonic Estimation Applied to a Water Rights Market," Land Economics, University of Wisconsin Press, vol. 63(3), pages 259-271.
    13. Plantinga, Andrew J. & Lubowski, Ruben N. & Stavins, Robert N., 2002. "The effects of potential land development on agricultural land prices," Journal of Urban Economics, Elsevier, vol. 52(3), pages 561-581, November.
    14. Burness, H Stuart & Quirk, James P, 1979. "Appropriative Water Rights and the Efficient Allocation of Resources," American Economic Review, American Economic Association, vol. 69(1), pages 25-37, March.
    15. Gardner, B. Delworth & Huffaker, Ray G., 1988. "Cutting the Loss from Federal Irrigation Water Subsidies," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 3(4), pages 1-3.
    16. Johnson, S R & Haigh, Peter A, 1970. "Agricultural Land Price Differentials and Their Relationship to Potentially Modifiable Aspects of the Climate," The Review of Economics and Statistics, MIT Press, vol. 52(2), pages 173-180, May.
    17. Roy Darwin, 1999. "The Impact of Global Warming on Agriculture: A Ricardian Analysis: Comment," American Economic Review, American Economic Association, vol. 89(4), pages 1049-1052, September.
    18. Olivier Deschenes & Michael Greenstone, 2004. "The Economic Impacts of Climate Change: Evidence from Agricultural Profits and Random," NBER Working Papers 10663, National Bureau of Economic Research, Inc.
    19. Bernard Oury, 1965. "Allowing for Weather in Crop Production Model Building," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 47(2), pages 270-283.
    20. Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, vol. 92(1), pages 1-45, September.
    21. John P. Doll, 1967. "An Analytical Technique for Estimating Weather Indexes from Meteorological Measurements," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 49(1_Part_I), pages 79-88.
    Full references (including those not matched with items on IDEAS)

    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. Wolfram Schlenker & W. Michael Hanemann & Anthony C. Fisher, 2005. "Will U.S. Agriculture Really Benefit from Global Warming? Accounting for Irrigation in the Hedonic Approach," American Economic Review, American Economic Association, vol. 95(1), pages 395-406, March.
    2. Sampson, Gabriel S. & Hendricks, Nathan P. & Taylor, Mykel R., 2019. "Land market valuation of groundwater," Resource and Energy Economics, Elsevier, vol. 58(C).
    3. Sampson, Gabriel & Hendricks, Nathan P. & Taylor, Mykel R., 2018. "Land Market Valuation of Groundwater Availability," 2018 Annual Meeting, August 5-7, Washington, D.C. 274320, Agricultural and Applied Economics Association.
    4. Chang Cai & Sandy Dall’Erba, 2021. "On the evaluation of heterogeneous climate change impacts on US agriculture: does group membership matter?," Climatic Change, Springer, vol. 167(1), pages 1-23, July.
    5. Mukherjee, Monobina & Schwabe, Kurt A., 2014. "Where's the salt? A spatial hedonic analysis of the value of groundwater to irrigated agriculture," Agricultural Water Management, Elsevier, vol. 145(C), pages 110-122.
    6. Ariel Ortiz-Bobea, 2021. "Climate, Agriculture and Food," Papers 2105.12044, arXiv.org.
    7. Kenneth Y. Chay & Michael Greenstone, 2005. "Does Air Quality Matter? Evidence from the Housing Market," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 376-424, April.
    8. Aguilar, Arturo & Vicarelli, Marta, 2022. "El Niño and children: Medium-term effects of early-life weather shocks on cognitive and health outcomes," World Development, Elsevier, vol. 150(C).
    9. B. Sonneveld & M. Keyzer & P. Adegbola & S. Pande, 2012. "The Impact of Climate Change on Crop Production in West Africa: An Assessment for the Oueme River Basin in Benin," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(2), pages 553-579, January.
    10. Ay, Jean-Sauveur & Latruffe, Laure, 2013. "The Empirical Content of the Present Value Model: A survey of the instrumental uses of farmland prices," Working papers 157112, Factor Markets, Centre for European Policy Studies.
    11. Graff Zivin, Joshua & Song, Yingquan & Tang, Qu & Zhang, Peng, 2020. "Temperature and high-stakes cognitive performance: Evidence from the national college entrance examination in China," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).
    12. Steven Passel & Emanuele Massetti & Robert Mendelsohn, 2017. "A Ricardian Analysis of the Impact of Climate Change on European Agriculture," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 725-760, August.
    13. Brady, Michael & Tantihkarkhana, Pitchayaporn, 2015. "Estimating the Value of Water from Property Sales in an Arid High Environmental Amenity Region: A Difference-in-Difference in Approach," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205658, Agricultural and Applied Economics Association.
    14. Deschenes, Olivier & Greenstone, Michael, 2004. "The Economic Impacts of Climate Change: Evidence from Agricultural Profits and Random Fluctuations in Weather," University of California at Santa Barbara, Economics Working Paper Series qt6w7242cj, Department of Economics, UC Santa Barbara.
    15. Eric C. Edwards, 2016. "What Lies Beneath? Aquifer Heterogeneity and the Economics of Groundwater Management," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(2), pages 453-491.
    16. Ariel Ortiz‐Bobea, 2020. "The Role of Nonfarm Influences in Ricardian Estimates of Climate Change Impacts on US Agriculture," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(3), pages 934-959, May.
    17. Swanepoel, G.D. & Hadrich, Joleen & Goemans, Christopher, 2015. "Estimating the Contribution of Groundwater Irrigation to Farmland Values in Phillips County, Colorado," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2015, pages 1-14.
    18. Chen, Zhangliang & Dall'Erba, Sandy, 2018. "Do crop insurance programs preclude their recipients from adapting to new climate conditions?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274398, Agricultural and Applied Economics Association.
    19. -, 2011. "An assessment of the economic impact of climate change on the agriculture sector in Saint Lucia," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38566, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    20. Charlotte Fabri & Michele Moretti & Steven Van Passel, 2022. "On the (ir)relevance of heatwaves in climate change impacts on European agriculture," Climatic Change, Springer, vol. 174(1), pages 1-20, September.

    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:cdl:agrebk:qt8q8309qn. 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: Lisa Schiff (email available below). General contact details of provider: https://edirc.repec.org/data/dabrkus.html .

    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.