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Adapting natural resource enterprises under global warming in South America: a mixed logit analysis

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  • Seo, S. Niggol

Abstract

This paper develops an integrated model of adapting natural resource intensive enterprises in Latin America to future climate changes. Based on about 2,000 rural household surveys, we model six specialized and diversified resource enterprises across seventeen land covers. We estimate random coefficients of climatic parameters with a mixed logit model. By 2020, under a hotter and drier CCC scenario, crops-only and cropforests enterprises are predicted to fall by 6.2%, and 0.6% respectively. Offsetting these losses, livestock-only enterprise increases by 5.5% and crops-livestock-forests enterprise increases by 0.7%. These changes magnify over time through 2060 by which time the crops-livestock enterprise increases by more than 5%. Adaptation measures should be designed in a manner that captures the unique characteristics of Latin American ecosystems.
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Suggested Citation

  • Seo, S. Niggol, 2012. "Adapting natural resource enterprises under global warming in South America: a mixed logit analysis," LSE Research Online Documents on Economics 123147, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:123147
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    File URL: http://eprints.lse.ac.uk/123147/
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    References listed on IDEAS

    as
    1. Kym Anderson & William A. Masters, 2009. "Distortions to Agricultural Incentives in Africa," World Bank Publications - Books, The World Bank Group, number 2607.
    2. Steiger, Carlos, 2006. "Modern Beef Production in Brazil and Argentina," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 21(2), pages 1-6.
    3. Kym Anderson, 2009. "Distortions to Agricultural Versus Nonagricultural Producer Incentives," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 55-74, September.
    4. Anderson, Kym, 2009. "Five Decades of Distortions to Agricultural Incentives," Agricultural Distortions Working Paper Series 48742, World Bank.
    5. World Bank, 2004. "World Development Indicators 2004," World Bank Publications - Books, The World Bank Group, number 13890.
    6. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, September.
    7. Kym Anderson & Will Martin, 2009. "Distortions to Agricultural Incentives in Asia," World Bank Publications - Books, The World Bank Group, number 2611.
    8. Anderson, Kym & Swinnen, Johan F.M., 2009. "Distortions to Agricultural Incentives in Eastern Europe and Central Asia," Agricultural Distortions Working Paper Series 48624, World Bank.
    9. Kym Anderson, 2009. "Distortions to Agricultural Incentives : A Global Perspective, 1955-2007," World Bank Publications - Books, The World Bank Group, number 9436.
    10. Anderson, Kym, 2009. "Political Economy of Distortions to Agricultural Incentives: Introduction and Summary," Agricultural Distortions Working Paper Series 50306, World Bank.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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