Technological change and risk management: an application to the economics of corn production

Kim, Kwansoo; Chavas, Jean‐Paul

doi:10.1016/s0169-5150(03)00081-1

Cited by 31 publications

(52 citation statements)

References 19 publications

(33 reference statements)

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“…However, wheat yields still will be lower with climate change than in the baseline case that assumes continuation of today's climate. Similar results have been suggested for the effects of climate change for farmers in the corn belt of US (Kim and Chavas 2003) and for European crop production affecting land use in Europe .…”

Section: Climate Change Impacts Under Different Technology Scenariossupporting

confidence: 82%

Turning climate change information into economic and health impacts

Halsnæs

Kühl

Olesen³

2007

Climatic Change

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The PRUDENCE project has generated a set of spatially and temporally highresolution climate data, which provides new opportunities for assessing the impacts of climate variability and change on economic and human systems in Europe. In this context, we initiated the development of new approaches for linking climate change information and economic studies. We have considered a number of case studies that illustrate how linkages can be established between geographically detailed climate data and economic information. The case studies included wheat production in agriculture, where regional climate data has been linked to farm enterprise data in an integrated model of physical conditions, production inputs and outputs, and farm management practices. Similarly, temperature data were used to assess consequences of extreme heat and excess mortality in urban areas. We give an introduction of an analytical approach for assessing economic impacts of climate change and discuss how economic concepts and valuation paradigms can be applied to climate change impact evaluation. A number of methodological difficulties encountered in economic assessments of climate change impacts are described and a number of issues related to social and private aspects of costs are highlighted. It is argued that, in particular, detailed climate information matters in relation to understanding how private agents react to observed climate data.

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Section: Climate Change Impacts Under Different Technology Scenariossupporting

confidence: 82%

Turning climate change information into economic and health impacts

Halsnæs

Kühl

Olesen³

2007

Climatic Change

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“…Risk-averse decision makers are adversely affected by a higher variance of returns (Kim and Chavas 2003). Also, under downside risk aversion, the welfare of decision makers is positively (negatively) affected by an increase (decrease) in skewness of returns.…”

Section: Methodsmentioning

confidence: 99%

“…So, effects of technological change of irrigation on the first, second and third moments of wheat profitability, as they evolve under technological progress, should be examined. In this study, first the risk-premium associated with the use of water is estimated by adapting a moment-based approach (Antle 1983(Antle , 1987Kim and Chavas 2003). Then, individual risk preferences are derived from the technology and preferences of the farms, which are then used to explain farmer's decision to adopt modern water-saving technologies in the second step.…”

Section: Methodsmentioning

confidence: 99%

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Adoption of New Irrigation Technology Under Production Risk

Torkamani

Shajari

2007

Water Resour Manage

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This paper investigates the factors affecting adoption of new irrigation technologies and also addresses the linkage between this type of technology and production risk. The risk-premium associated with the use of water is estimated by adapting a momentbased approach. Farm-level data were collected from a sample of 187 wheat farms, located in the three major districts of Fars province of Iran during the years 2002 and 2003. Results of this study demonstrate that the risk premium decrease with new irrigation technology. Also, it is concluded that the farmer-specific relative risk premium has positive and significant effect on the decision to adopt the new irrigation technologies. So, farmers that are more risk-averse with respect to their use of water are more likely to adopt new irrigation technologies that allow them to save water and decrease their production (yield) risk.

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“…Naturally, the adoption of new techniques and methods can be coupled with their agreement with profit motives, as a means of enhancing efficiency for reducing costs. A range of dairying based studies tend to emphasise financial reward as a key aspect of technology adoption (Foltz and Chang 2002;Kim and Chavas 2003;Koundouri et al 2006).…”

Section: The Innovator (In) (16% Of Sample)mentioning

confidence: 99%

A typology of dairy farmer perceptions towards climate change

2011

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Dairy farming is an industry which could potentially mitigate a large amount of greenhouse gas emissions. However, perception and acceptance towards climate change is a significant barrier to voluntary adoption of best practice techniques. A number of countries have set targets for reducing emissions, of which Scotland has one of the most ambitious agendas. This paper presents results from an extensive survey of 540 dairy farmers, conducted in 2009, with the aim of understanding attitudes, values and intentions towards climate change. Only half of these farmers agreed that temperatures would rise in the future and this could significantly hinder adoption of voluntary measures to meet emissions targets. To explore this further a typology was developed on the responses to attitude and value statements, using principal components and cluster analysis methods. Six distinct types were found to exist which had a range of outlooks towards the impact of climate change in the future. However, five of the six types stated no intention to adopt practices which would reduce emissions. The typology approach supports diversified engagement strategies and a more innovation-led or resource maximisation view towards farming was expressed by several of these types. This may indicate that policy makers should focus on 'win-win' technologies as a means to effectively engage with these. However, a number of types were disengaged from the process which was driven by uncertainties towards projections for global warming and this needs to be addressed by both scientists and policy makers to ensure greater participation within the farming community.

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Technological change and risk management: an application to the economics of corn production

Cited by 31 publications

References 19 publications

Turning climate change information into economic and health impacts

Turning climate change information into economic and health impacts

Adoption of New Irrigation Technology Under Production Risk

A typology of dairy farmer perceptions towards climate change

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