The Impact of Global Warming on Agriculture: A Ricardian Analysis
The Impact of Global Warming on Agriculture: A Ricardian Analysis
- American Economic Review, 84(4), p.753-771, 1994 .
We measure the economic impact of climate on land prices. Using crosssectional data on climate, farmland prices, and other economic and geophysical data for almo.st 3,000 counties in the United States, we find that higher temperatures in all seasons except autumn reduce average farm values, while more precipitation outside of autumn increases farm values. Applying the model to a glohal-warming .scenario shows a significantly lower estimated impact of glohal warming on U.S. agriculture than the traditional production-function approach and, in one case, suggests that, even without COy fertilization, glohal warming may have economic benefits for agriculture.
We measure the economic impact of climate on land prices. Using crosssectional data on climate, farmland prices, and other economic and geophysical data for almo.st 3,000 counties in the United States, we find that higher temperatures in all seasons except autumn reduce average farm values, while more precipitation outside of autumn increases farm values. Applying the model to a glohal-warming .scenario shows a significantly lower estimated impact of glohal warming on U.S. agriculture than the traditional production-function approach and, in one case, suggests that, even without COy fertilization, glohal warming may have economic benefits for agriculture.