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A Ricardian Analysis of the Impact of Climate Change on European Agriculture

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Listed:
  • Steven Van Passel
  • Emanuele Massetti
  • Robert Mendelsohn

Abstract

This research estimates the impact of climate on European agriculture using a continental scale Ricardian analysis. Climate, soil, geography and regional socio-economic variables are matched with farm level data from 37,612 farms across Western Europe. We demonstrate that a median quantile regression outperforms OLS given farm level data. The results suggest that European farms are slightly more sensitive to warming than American farms with losses from -8% to -44% by 2100 depending on the climate scenario. Farms in Southern Europe are predicted to be particularly sensitive, suffering losses of -9% to -13% per degree Celsius.

Suggested Citation

  • Steven Van Passel & Emanuele Massetti & Robert Mendelsohn, 2014. "A Ricardian Analysis of the Impact of Climate Change on European Agriculture," CESifo Working Paper Series 4842, CESifo.
    • Handle: RePEc:ces:ceswps:_4842
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    More about this item

    Keywords

    Ricardian analysis; climate change; European agriculture; climate change economics; quantile regression;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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