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Climate Change and Agriculture: Farmer Adaptation to Extreme Heat

Author

Listed:
  • Fernando M. Aragón

    (Simon Fraser University)

  • Francisco Oteiza

    (Institute for Fiscal Studies)

  • Juan Pablo Rud

    (Department of Economics, Royal Holloway, University of London and Institute of Fiscal Studies)

Abstract

This paper examines how farmers adapt, in the short-run, to extreme heat. Using a production function approach and micro-data from Peruvian households, we find that high temperatures induce farmers to increase the use of inputs, such as land and domestic labor. This reaction partially attenuates the negative effects of high temperatures on output. We interpret this change in inputs as an adaptive response in a context of subsistence farming, incomplete markets, and lack of other coping mechanisms. We use our estimates to simulate alternative climate change scenarios and show that accounting for adaptive responses is quantitatively important.

Suggested Citation

  • Fernando M. Aragón & Francisco Oteiza & Juan Pablo Rud, 2018. "Climate Change and Agriculture: Farmer Adaptation to Extreme Heat," Discussion Papers dp18-02, Department of Economics, Simon Fraser University.
    • Handle: RePEc:sfu:sfudps:dp18-02
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    Cited by:

    1. Abebe, Meseret B. & Alem, Yonas, 2023. "Drought, Livestock Holding, and Milk Production: A Difference-in-Differences Analysis," EfD Discussion Paper 23-12, Environment for Development, University of Gothenburg.
    2. Olivier R de Bandt & Luc Jacolin & Thibault Lemaire, 2021. "Climate Change in Developing Countries: Global Warming Effects, Transmission Channels and Adaptation Policies," Working Papers hal-03948704, HAL.
    3. Abebe, Meseret Birhane & Endale, Kefyalew, 2023. "The Impact of Improved Seed Adoption on Nutrition Outcome: A Panel Endogenous Switching Regression Analysis," EfD Discussion Paper 23-1, Environment for Development, University of Gothenburg.
    4. Heleene Tambet & Yaniv Stopnitzky, 2021. "Climate Adaptation and Conservation Agriculture among Peruvian Farmers," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 900-922, May.
    5. Abebe, Meseret B. & Alem, Yonas, 2024. "Drought, livestock holding, and milk production: A difference-in-differences analysis," Ruhr Economic Papers 1046, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Hertweck, Matthias & Brey, Bjoern, 2017. "The Persistent Effects of Monsoon Rainfall Shocks in India: A Nonlinear VAR Approach," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168256, Verein für Socialpolitik / German Economic Association.
    7. Abdel Ghany, Jasmin & Wilde, Joshua K. & Dimitrova, Anna & Kashyap, Ridhi & Muttarak, Raya, 2024. "Temperature and Sex Ratios at Birth," OSF Preprints wj7ke, Center for Open Science.

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    More about this item

    Keywords

    Climate Change; Agriculture; Adaptation;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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