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The impact of weather on crop yield distribution in Taiwan: some new evidence from panel data models and implications for crop insurance

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  • Chi-Chung Chen
  • Ching-Cheng Chang
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    Abstract

    This study examines the impact of weather on the yields of seven major crops in Taiwan based on pooled panel data for 15 prefectures over the 1977-1996 period. The unit root tests and maximum likelihood methods involving a panel data model are explored to obtain reliable estimates. The uncertain yield outcome is incorporated into a discrete stochastic programming model to address a comparison between sector analysis with and without considerations of a crop insurance policy under different climate change scenarios. Simulation results suggest that crop insurance may stabilize revenues and protect farmers from exposures to increasing weather-related risk. Copyright 2005 International Association of Agricultural Economics.

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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1574-0864.2005.00097.x
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    Bibliographic Info

    Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

    Volume (Year): 33 (2005)
    Issue (Month): s3 (November)
    Pages: 503-511

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    Handle: RePEc:bla:agecon:v:33:y:2005:i:s3:p:503-511

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    Cited by:
    1. Agabriel, Jacques & Lherm, Michel & Mosnier, Claire & Reynaud, Arnaud & Thomas, Alban, 2009. "Estimating a Production Function under Production and Output Price Risks: An Application to Beef Cattle in France," TSE Working Papers 09-046, Toulouse School of Economics (TSE).
    2. Fernandez, Mario Andres, 2013. "Decadal Climate Variability: Economic Implications In Agriculture And Water In The Missouri River Basin," 2013 Conference, August 28-30, 2013, Christchurch, New Zealand 160199, New Zealand Agricultural and Resource Economics Society.
    3. Kim, Man-Keun & Pang, Arwin, 2009. "Climate Change Impact on Rice Yield and Production Risk," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 32(2), June.
    4. Chih-Chun Kung & Hualin Xie & Tao Wu & Shih-Chih Chen, 2014. "Biofuel for Energy Security: An Examination on Pyrolysis Systems with Emissions from Fertilizer and Land-Use Change," Sustainability, MDPI, Open Access Journal, vol. 6(2), pages 571-588, January.
    5. Kung, Chih-Chun & McCarl, Bruce A. & Cao, Xiaoyong, 2013. "Economics of pyrolysis-based energy production and biochar utilization: A case study in Taiwan," Energy Policy, Elsevier, vol. 60(C), pages 317-323.

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