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

Author

Listed:
  • Steven Van Passel

    (Hasselt University, Faculty of Business Economics, Centre for Environmental Sciences, Agoralaan, Yale University, School of Forestry and Environmental Studies)

  • Emanuele Massetti

    (Yale University, School of Forestry and Environmental Studies, Fondazione Eni Enrico Mattei)

  • Robert Mendelsohn

    (Yale University, School of Forestry and Environmental Studies)

Abstract

This research estimates the impact of climate on European agriculture using a continental scale Ricardian analysis. Data on climate, soil, geography and regional socio-economic characteristics were matched for 37 612 individual farms across the EU-15. Farmland values across Europe are sensitive to climate. Even with the adaptation captured by the Ricardian technique, farms in Southern Europe are predicted to suffer sizeable losses (8% -13% per degree Celsius) from warming. In contrast, agriculture in the rest of Europe is likely to see only mixed impacts. Increases (decreases) in rain will increase (decrease) average farm values by 3% per centiliter of precipitation. Aggregate impacts by 2100 vary depending on the climate model scenario from a loss of 8% in a mild scenario to a loss of 44% in a harsh scenario.

Suggested Citation

  • Steven Van Passel & Emanuele Massetti & Robert Mendelsohn, 2012. "A Ricardian Analysis of the Impact of Climate Change on European Agriculture," Working Papers 2012.83, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2012.83
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    References listed on IDEAS

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    More about this item

    Keywords

    Ricardian Analysis; Climate Change; European Agriculture; Climate Change Economics;
    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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