Climate Variable Choice in Ricardian Studies of European Agriculture

Vaitkevičiūtė, Jaunė; Chakir, Raja; Passel, Steven Van

doi:10.3917/reco.703.0375

Cited by 10 publications

(9 citation statements)

References 27 publications

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“…From Figure A4 in Appendix B, we find that our model results are not robust to replacement of the climate variables. This is in line with previous study results, which state that using growing season climate variables underestimates the importance of cold temperatures (Vaitkeviciute et al, 2019).…”

Section: Alternative Meteorological Variablessupporting

confidence: 93%

“…The responses are slightly enlarged because increasing the heatwave intensity does not only affect the event frequency, but also the magnitude of heatwaves (Test 1 in Appendix B). Some Ricardian studies use total degree days and precipitation over the growing season rather than seasonal temperatures and precipitation (Massetti et al, 2016;Vaitkeviciute et al, 2019). The degree days variable is obtained by taking the sum of all daily temperatures exceeding 8°C over the growing season (April-September).…”

Section: Alternative Meteorological Variablesmentioning

confidence: 99%

“…The Ricardian approach has been used to estimate the impact of climate change and to value the potential of long-term climate adaptation in European agriculture, which is also the geographical scope of the present study (Moore & Lobell, 2014;Van Passel et al, 2017;Vanschoenwinkel et al, 2016). Studies adopting this approach have used various variables for representing average climate such as seasonal temperature, degree days or temperature bins Vaitkeviciute et al, 2019). Climate variability, which refers to deviations from long-term climate means, is often neglected in climate impact assessments (Ramamasy, 2007).…”

Section: Introductionmentioning

confidence: 99%

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On the (ir)relevance of heatwaves in climate change impacts on European agriculture

2022

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This research investigates the impact of heatwaves on European agriculture, additional to the impact of gradual climate change. Using a dataset of more than 60,000 European farms, the study examines whether adding a measure for heatwaves to the Ricardian model influences its results. The study finds that the marginal impact of heatwave frequency, i.e. the percentage change in agricultural land values caused by one more heatwave day per year, is negligible in comparison to the effect of average temperature increases. Non-marginal effects are found to be relevant, but only in the unlikely case of increased heatwave frequency.

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Section: Alternative Meteorological Variablessupporting

confidence: 93%

Section: Alternative Meteorological Variablesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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On the (ir)relevance of heatwaves in climate change impacts on European agriculture

2022

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“…Although Massetti, Mendelsohn and Chonabayashi (2016) show that the growing degree-days variable offers a compact alternative compared to seasonal variables, regressing farmland values (or SVi or NRi) on monthly or growing season climate data will have generated correlation issues (Vanschoenwinkel, Mendelsohn and Van Passel, 2016) Therefore, climate data were averaged into four seasons since agronomic and Ricardian studies acknowledged that seasonal temperature and precipitation have a significant impact on farm productivity (see Mendelsohn and Dinar (2009)). Moreover, in at the European continental scale, the use of growing degree-days variable as implemented by Vaitkeviciute, Chakir and Van Passel (2019) brought to the similar conclusions as founded by Van Passel, where seasonal climate variables were used. Linear and quadratic terms were introduced for both temperature and precipitation since previous studies demonstrated the non-linear relationship between climate and land values Dinar, 2003, Mendelsohn, Nordhaus andShaw, 1994).…”

Section: = ∫mentioning

confidence: 58%

Accounting for externalities in cross-sectional economic models of climate change impacts

Moretti

Vanschoenwinkel

Passel

2021

Ecological Economics

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Environmental effects and natural resources depletion associated with agriculture production affect the agriculture response to climate change. Traditional cross-sectional climate response models ignore this requirement. This research estimates the impact of climate on European agriculture using a continental scale Ricardian analysis. We correct farm income by accounting for resources (energy, fertilizers, pesticides and water) use intensity by calculating the sustainable value for a sample of 9,497 specialized field crop farms across Europe. The results show that a uniform increase in temperature (+1°C) across all four seasons lead to significant and negative effects on farmland values, net revenue and farms' sustainable value, while additional precipitation (+1 cm) across the all seasons increases farms' land values and sustainable values, and harms farms' net revenue. Compared with the traditional Ricardian method, the marginal effect of 1° C increase in temperature shift from positive to negative in Northern countries, while it leads to less damages in Southern countries when net revenue and farms' sustainable values are used as dependent variables. We demonstrate that accounting for the environmental effects and depletion of natural capital by agriculture significantly improves the ability of the Ricardian method to estimate agriculture climate response functions in the long run.

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“…They reported that irrigated farms are more sensitive to temperature-level fluctuations and the rain-fed ones are sensitive to changes in precipitation. The application of the Ricardian model with panel data on European agriculture by [48] also confirmed that the impact of climate change varies across the different regions of Europe and in the future. A panel data employment of Ricardian model carried out in Hungary [49] assessed that the responsiveness of agricultural production varies between short-run and long-run time horizons and the different agro-ecological zones of the country.…”

Section: Literature Reviewmentioning

confidence: 65%

Examining the Economic Impacts of Climate Change on Net Crop Income in the Ethiopian Nile Basin: A Ricardian Fixed Effect Approach

Baylie

Fogarassy

2021

Sustainability

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Climate change affects crop production by distorting the indestructible productive power of the land. The objective of this study is to examine the economic impacts of climate change on net crop income in Nile Basin Ethiopia using a Ricardian fixed effect approach employing the International Food Policy Research Institute (IFPRI) household survey data for Ethiopia in 2015 and 2016. The survey samples were obtained through a three-stage stratified sampling technique from the five regions (Amhara, Tigray, Benishangul Gumuz, Oromia, and Southern Nation Nationality and People (SNNP) along the Nile basin Ethiopia. There are only 12–14% female household heads while there are 80–86% male households in the regions under study. In the regions, more than half of (64%) the household heads are illiterate and almost only one-tenth of them (12%) had received remittance from abroad from their relatives or children. Crop variety adoption rate is minimal, adopted by the 31% of farmers. Only 30% of the surveyed farmers mentioned that they planted their crop seeds in row whereas the rest 70% had not applied this method. The regression results from the fixed effect least square dummy variable model showed that literacy, household size, remittance, asset value, and total land holdings have significant and positive impacts on the net crop income per hectare. The regional dummy variables estimate indicated that all the regions are negatively affected by climate change at varying levels. Strategies to climate change adaptation have significant and positive contributions in leveraging the damaging effects of climate change. The results also showed that increased winter and summer temperature and rainfall increase net crop income per hectare. The estimated coefficient of the interaction term of spring temperature and rainfall is significant and negative. On the other hand, while the mean annual temperature is damaging to crops, annual rainfall is beneficial. It can be deduced that, while increased temperature and rainfall in summer and winter increase the net crop income, the converse is true for winter and spring seasons. The study also proposes a specific, context-dependent, farm-level adaptation analysis of how farmers cope with the different climatic impacts of the Nile Basin and maintain the income levels that they have previously enjoyed.

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Climate Variable Choice in Ricardian Studies of European Agriculture

Cited by 10 publications

References 27 publications

On the (ir)relevance of heatwaves in climate change impacts on European agriculture

On the (ir)relevance of heatwaves in climate change impacts on European agriculture

Accounting for externalities in cross-sectional economic models of climate change impacts

Examining the Economic Impacts of Climate Change on Net Crop Income in the Ethiopian Nile Basin: A Ricardian Fixed Effect Approach

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