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The Impact of Climate Change on the Profitability of Site Specific Technologies

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  • Finger, Robert
  • Gerwig, Claude N.

Abstract

Site Specific Technologies (SST) can reduce environmental pollution caused by common agricultural practice. Using a case study for corn yields, we investigate the impact of climate change (CC) on profitability of SSTs. We find CC to increase spatial variability of soils with respect to optimal input application and yield variability. This leads, ceteris paribus, to higher incentives for SST adoption in the future.

Suggested Citation

  • Finger, Robert & Gerwig, Claude N., 2007. "The Impact of Climate Change on the Profitability of Site Specific Technologies," MPRA Paper 4792, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:4792
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    References listed on IDEAS

    as
    1. Finger, Robert & Schmid, Stephanie, 2007. "Modeling agricultural production risk and the adaptation to climate change," 101st Seminar, July 5-6, 2007, Berlin Germany 9270, European Association of Agricultural Economists.
    2. Pampolino, M.F. & Manguiat, I.J. & Ramanathan, S. & Gines, H.C. & Tan, P.S. & Chi, T.T.N. & Rajendran, R. & Buresh, R.J., 2007. "Environmental impact and economic benefits of site-specific nutrient management (SSNM) in irrigated rice systems," Agricultural Systems, Elsevier, vol. 93(1-3), pages 1-24, March.
    3. Luc Anselin & Rodolfo Bongiovanni & Jess Lowenberg-DeBoer, 2004. "A Spatial Econometric Approach to the Economics of Site-Specific Nitrogen Management in Corn Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 675-687.
    4. Eitzinger, J. & Stastna, M. & Zalud, Z. & Dubrovsky, M., 2003. "A simulation study of the effect of soil water balance and water stress on winter wheat production under different climate change scenarios," Agricultural Water Management, Elsevier, vol. 61(3), pages 195-217, July.
    5. Isik, Murat & Khanna, Madhu, 2002. "Variable-Rate Nitrogen Application Under Uncertainty: Implications For Profitability And Nitrogen Use," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(1), pages 1-16, July.
    6. Finger, Robert & Hediger, Werner, 2007. "The Application of Robust Regression to a Production Function Comparison – the Example of Swiss Corn," MPRA Paper 4740, University Library of Munich, Germany.
    7. Khanna, Madhu & Isik, Murat & Winter-Nelson, Alex, 2000. "Investment in site-specific crop management under uncertainty: implications for nitrogen pollution control and environmental policy," Agricultural Economics, Blackwell, vol. 24(1), pages 9-21, December.
    8. Murat Isik & Madhu Khanna, 2003. "Stochastic Technology, Risk Preferences, and Adoption of Site-Specific Technologies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 305-317.
    9. Robert Finger & Stéphanie Schmid, 2008. "Modeling agricultural production risk and the adaptation to climate change," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 68(1), pages 25-41, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Climate Change; Site Specific Technologies; Adaptation; Crop Production Function;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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