Endogenous farm-type selection, endogenous irrigation, and spatial effects in Ricardian models of climate change

Chatzopoulos, Thomas; Lippert, Christian

doi:10.1093/erae/jbv014

Cited by 22 publications

(20 citation statements)

References 30 publications

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“…As such, even though frequently used (see Kurukulasuriya et al (2006), Mendelsohn and Dinar (2003), Schlenker et al (2006), Seo and Mendelsohn (2008b), and Van Passel et al (2017)), it should be noted that the methodology of subsampling irrigated and rainfed farms is less accurate. This is a frequently cited problem which requires more research attention (see for instance Kurukulasuriya et al (2011) and Chatzopoulos and Lippert (2016)). Thirdly, before it is possible to account for farm irrigation management heterogeneity, more farm irrigation data are needed.…”

Section: Discussionmentioning

confidence: 99%

Climate response of rainfed versus irrigated farms: the bias of farm heterogeneity in irrigation

Vanschoenwinkel

Passel

2018

Climatic Change

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Researchers who do not take into account farm heterogeneity in implementing specific climate change adaptation options might significantly bias their findings. To prove this point, this paper focusses on irrigation as an adaptation option to climate change and highlights the fact that there is no such thing as Birrigation.^Instead, different farms consider water management options across a spectrum that ranges from purely rainfed farms to purely irrigated farms with in between the extreme practices such as supplemental irrigation, water conservation practices, and different irrigation techniques. Accounting for such differences is necessary, yet difficult due to a lack of farm-specific data on water management and irrigation. This paper uses unique Farm Accountancy Data Network data of Western European farmers on the proportion of farmland that each farm irrigates. Unlike previous work, this allows taking into account some within-irrigation heterogeneity instead of simply categorizing farms as being Birrigated.^We estimate and compare climate response models based on the Ricardian cross-sectional method for a large range of irrigation categories. The results give insights into how the farm irrigation climate response can be significantly different depending on how irrigation is defined. This proves that ignoring within-adaptation differences when comparing non-adaptation with adaptation (in this case, rainfed versus irrigated agriculture) might lead to biased conclusions with regard to effectiveness of adaptation strategies. We therefore argue that it might be more relevant to understand at which point and under which circumstances irrigated agriculture is more or less beneficial than rainfed agriculture.

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Section: Discussionmentioning

confidence: 99%

Climate response of rainfed versus irrigated farms: the bias of farm heterogeneity in irrigation

Vanschoenwinkel

Passel

2018

Climatic Change

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“…Although the Ricardian model does measure impacts net of adaptation, it does not measure how farmers adapt (Seo and Mendelsohn, 2008a), and what specific adaptation strategies are employed by farmers (Di Falco, Veronesi and Yesuf, 2011). Separate studies that explicitly address adaptation are required to study the choice of irrigation (Kurukulasuriya, Kala and Mendelsohn, 2011;Chatzopoulos and Lippert, 2016), crop choice (Kurukulasuriya and Mendelsohn, 2008;Seo and Mendelsohn, 2008a;Wang et al, 2010;Chatzopoulos and Lippert, 2016) and livestock choice (Seo and Mendelsohn, 2008b;2008c).…”

Section: Methodsologymentioning

confidence: 99%

A Ricardian analysis of the impact of climate change on Italian agriculture

Bozzola

Massetti

Mendelsohn

et al. 2017

European Review of Agricultural Economics

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This research investigates the potential impact of warming on Italian agriculture. Using a detailed dataset of 16,000 farms across Italy, the study examines likely warming impacts in different regions and for different sectors of Italian agriculture. The study finds that farm net revenues are very sensitive to seasonal changes in temperature and precipitation. Livestock and crop farms have different responses to climate as do rainfed farms and irrigated crop farms. The overall results suggest mild consequences from marginal changes in climate but increasingly harmful effects from more severe climate scenarios.

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“…Although the Ricardian model does measure impacts net of adaptation, it does not measure how farmers adapt (Seo and Mendelsohn, 2008a), and what specific adaptation strategies are employed by farmers (Di Falco, Veronesi and Yesuf, 2011). Separate studies that explicitly address adaptation are required, to study the choice of irrigation (Kurukulasuriya, Kala and Mendelsohn, 2011;Chatzopoulos and Lippert, 2016), crop choice (Kurukulasuriya and Mendelsohn, 2008;Seo and Mendelsohn, 2008a;Wang et al, 2010;Chatzopoulos and Lippert, 2016) and livestock choice (Seo and Mendelsohn, 2008b;2008c).…”

Section: Methodsologymentioning

confidence: 99%

“…Earlier literature suggests that crops and livestock as well as irrigated and rainfed farms may react to climate in different ways (Mendelsohn and Dinar, 2009;Van Passel, Massetti and Mendelsohn, 2016;Chatzopoulos and Lippert, 2016). We test this hypothesis by measuring the climate sensitivity of farms that just sell crops versus farms that just sell livestock.…”

mentioning

confidence: 95%

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

et al. 2017

View full text Add to dashboard Cite

This research investigates the potential impact of warming on Italian agriculture. Using a detailed dataset of 16,000 farms across Italy, the study examines likely warming impacts in different regions and for different sectors of Italian agriculture. The study finds that farm net revenues are very sensitive to seasonal changes in temperature and precipitation. Livestock and crop farms have different responses to climate as do rainfed farms and irrigated farms. The overall results suggest mild consequences from marginal changes in climate but increasingly harmful effects from more severe climate scenarios.

show abstract

Endogenous farm-type selection, endogenous irrigation, and spatial effects in Ricardian models of climate change

Cited by 22 publications

References 30 publications

Climate response of rainfed versus irrigated farms: the bias of farm heterogeneity in irrigation

Climate response of rainfed versus irrigated farms: the bias of farm heterogeneity in irrigation

A Ricardian analysis of the impact of climate change on Italian agriculture

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

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