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Measuring the Impact of Global Warming in Agriculture

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This paper develops a "Ricardian" approach for measuring the economic impact of environmental factors such as climate by examining the direct impact of the environmental factor on land prices. Estimating the model using cross-sectional data on climate, farm-land prices, and other economic and geophysical data for almost 3,000 countries in the United States, we find that higher temperatures in all seasons except autumn reduce average farm values in the United States and more precipitation in all seasons except autumn increases farm values. Applying the model to a global-warming scenario finds a range of impacts depending upon whether the model emphasize the grains through crop-land weights or a broader set of crops through crop-revenue weights. The results of the Ricardian approach show a significantly lower estimated impact of global warming than the traditional production-function approach.

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  • Robert Mendelsohn & William D. Nordhaus & Daigee Shaw, 1993. "Measuring the Impact of Global Warming in Agriculture," Cowles Foundation Discussion Papers 1045, Cowles Foundation for Research in Economics, Yale University.
    • Handle: RePEc:cwl:cwldpp:1045
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    File URL: https://cowles.yale.edu/sites/default/files/files/pub/d10/d1045.pdf
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    1. William R. Cline, 1992. "Economics of Global Warming, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 39, April.
    2. Beach, Robert H. & Thomson, Allison M. & McCarl, Bruce A., 2010. "Climate Change Impacts On Us Agriculture," 2010: Climate Change in World Agriculture: Mitigation, Adaptation, Trade and Food Security, June 2010, Stuttgart-Hohenheim, Germany 91393, International Agricultural Trade Research Consortium.
    3. Adams, Richard M. & McCarl, Bruce A. & Dudek, Daniel J. & Glyer, J. David, 1988. "Implications Of Global Climate Change For Western Agriculture," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(2), pages 1-9, December.
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    1. Emanuele Massetti & Robert Mendelsohn, 2011. "Estimating Ricardian Models With Panel Data," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 2(04), pages 301-319.
    2. Fisher, Anthony C. & Hanemann, W. Michael, 1998. "The Impact Of Global Warming On Agriculture: Rethinking The Ricardian Approach," CUDARE Working Papers 6864, University of California, Berkeley, Department of Agricultural and Resource Economics.
    3. Wang, Jinxia & Mendelsohn, Robert & Dinar, Ariel & Huang, Jikun, 2008. "How China's farmers adapt to climate change," Policy Research Working Paper Series 4758, The World Bank.
    4. Wang, Jinxia & Mendelsohn, Robert & Dinar, Ariel & Huang, Jikun & Rozelle, Scott & Zhang, Lijuan, 2008. "Can China continue feeding itself ? the impact of climate change on agriculture," Policy Research Working Paper Series 4470, The World Bank.
    5. Don Fullerton, 2008. "Distributional Effects of Environmental and Energy Policy: An Introduction," NBER Working Papers 14241, National Bureau of Economic Research, Inc.
    6. Robert S. Pindyck, 2006. "Uncertainty In Environmental Economics," NBER Working Papers 12752, National Bureau of Economic Research, Inc.
    7. Pervez Zamurrad Janjua & Ghulam Samad & Nazakat Ullah Khan, 2010. "Impact of Climate Change on Wheat Production: A Case Study of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 799-822.
    8. Christian Hott & Judith Regner, 2023. "Weather extremes, agriculture and the value of weather index insurance," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 48(2), pages 230-259, September.
    9. Robert Mendelsohn & Larry Williams, 2004. "Comparing Forecasts of the Global Impacts of Climate Change," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 9(4), pages 315-333, October.

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