IDEAS home Printed from https://ideas.repec.org/a/cup/jagaec/v31y1999i03p537-549_00.html
   My bibliography  Save this article

Impacts of Increased Climate Variability on the Profitability of Midwest Agriculture

Author

Listed:
  • Dixon, Bruce L.
  • Segerson, Kathleen

Abstract

Approximate profit functions are estimated using time-series, cross-sectional, county level data for 12 midwest states. Measures of climate variability are included in the profit functions. Simulated impacts of climate changes on profits are derived. Results show that inclusion of measures of climate variation are important for measuring the impact of changes in mean temperature and precipitation levels. Failure to account for the impact of differences in variability leads to an overestimate of damages. If global warming increases diurnal variation, such increases would have negative impacts on the profitability of midwest agriculture.

Suggested Citation

  • Dixon, Bruce L. & Segerson, Kathleen, 1999. "Impacts of Increased Climate Variability on the Profitability of Midwest Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 31(3), pages 537-549, December.
    • Handle: RePEc:cup:jagaec:v:31:y:1999:i:03:p:537-549_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1074070800008828/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Richard M. Adams, 1989. "Global Climate Change and Agriculture: An Economic Perspective," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(5), pages 1272-1279.
    2. Dalton, Michael G., 1997. "The Welfare Bias from Omitting Climatic Variability in Economic Studies of Global Warming," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 221-239, July.
    3. Jean-Paul Chavas & Matthew T. Holt, 1990. "Acreage Decisions Under Risk: The Case of Corn and Soybeans," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 529-538.
    4. Mendelsohn, Robert & Nordhaus, William D & Shaw, Daigee, 1994. "The Impact of Global Warming on Agriculture: A Ricardian Analysis," American Economic Review, American Economic Association, vol. 84(4), pages 753-771, September.
    5. Beach, Robert H. & Thomson, Allison M. & McCarl, Bruce A., 2010. "Climate Change Impacts On Us Agriculture," 2010: Climate Change in World Agriculture: Mitigation, Adaptation, Trade and Food Security, June 2010, Stuttgart-Hohenheim, Germany 91393, International Agricultural Trade Research Consortium.
    6. Adams, Richard M. & McCarl, Bruce A. & Dudek, Daniel J. & Glyer, J. David, 1988. "Implications Of Global Climate Change For Western Agriculture," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(2), pages 1-9, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ying Zhang & Liangzhi You & Donghoon Lee & Paul Block, 2020. "Integrating climate prediction and regionalization into an agro-economic model to guide agricultural planning," Climatic Change, Springer, vol. 158(3), pages 435-451, February.
    2. Anthony Baffoe‐Bonnie & Genti Kostandini, 2019. "Annual and cropping season environmental production conditions effects on smallholder technical efficiency in sub‐Saharan Africa: Evidence from Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 50(6), pages 779-791, November.
    3. Garcia, Maria & Viladrich-Grau, Montserrat, 2009. "The economic relevance of climate variables in agriculture: The case of Spain," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 9(02), pages 1-32.
    4. Liu, Menglin, 2022. "The effect of conservation tillage on corn and soybean yields in the US Corn Belt: a Post-Double-Selection method," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322417, Agricultural and Applied Economics Association.
    5. Kanakasabai, Murali & Dillon, Carl R., 2004. "Potential For Farm Adaptation To Global Climatic Change In Kentucky," 2004 Annual meeting, August 1-4, Denver, CO 20422, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Paul J. Block & Kenneth Strzepek & Mark W. Rosegrant & Xinshen Diao, 2008. "Impacts of considering climate variability on investment decisions in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 171-181, September.
    7. Deal, John, 2006. "The Relationship Between Economically and Environmentally Marginal Land," 2006 Annual meeting, July 23-26, Long Beach, CA 21119, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eric Njuki & Boris E Bravo-Ureta & Christopher J O’Donnell, 2018. "A new look at the decomposition of agricultural productivity growth incorporating weather effects," PLOS ONE, Public Library of Science, vol. 13(2), pages 1-21, February.
    2. Baylis, Kathy & Paulson, Nicholas D. & Piras, Gianfranco, 2011. "Spatial Approaches to Panel Data in Agricultural Economics: A Climate Change Application," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(3), pages 325-338, August.
    3. Kaiser, Harry M., 1991. "Climate Change And Agriculture," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 20(2), pages 1-13, October.
    4. Noubissi Domguia, Edmond & Njangang, Henri, 2019. "Agricultural Growth and Environmental Quality in Cameroon: Evidence from ARDL Bound Testing Approach," MPRA Paper 91735, University Library of Munich, Germany.
    5. Fleischer, Aliza & Lichtman, Ivgenia & Mendelsohn, Robert, 2008. "Climate change, irrigation, and Israeli agriculture: Will warming be harmful?," Ecological Economics, Elsevier, vol. 65(3), pages 508-515, April.
    6. Randhir, Timothy O. & Hertel, Thomas W., 2000. "Trade Liberalization As A Vehicle For Adapting To Global Warming," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(2), pages 1-14, October.
    7. Francesco Bosello & Jian Zhang, 2006. "The Effects of Climate Change on Agriculture," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    8. Wolfram Schlenker & W. Michael Hanemann & Anthony C. Fisher, 2005. "Will U.S. Agriculture Really Benefit from Global Warming? Accounting for Irrigation in the Hedonic Approach," American Economic Review, American Economic Association, vol. 95(1), pages 395-406, March.
    9. Kanakasabai, Murali & Dillon, Carl R., 2004. "Potential For Farm Adaptation To Global Climatic Change In Kentucky," 2004 Annual meeting, August 1-4, Denver, CO 20422, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Fleischer, Aliza & Sternberg, Marcelo, 2006. "The economic impact of global climate change on Mediterranean rangeland ecosystems: A Space-for-Time approach," Ecological Economics, Elsevier, vol. 59(3), pages 287-295, September.
    11. Schlenker, Wolfram & Hanemann, W. Michael & Fisher, Anthony C., 2004. "Determinants of Agricultural Output: Degree Days, Yields and Implications for Climate Change," 2005 Annual meeting, July 24-27, Providence, RI 19222, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Seo, Niggol & Mendelsohn, Robert & Dinar, Ariel & Kurukulasuriya, Pradeep & Hassan, Rashid, 2008. "Long-term adaptation : selecting farm types across agro-ecological zones in Africa," Policy Research Working Paper Series 4602, The World Bank.
    13. Farnaz Pourzand & Kendom Bell, 2021. "How climate affects agricultural land values in Aotearoa New Zealand," Working Papers 21_16, Motu Economic and Public Policy Research.
    14. Seo, S. Niggol & Mendelsohn, Robert, 2008. "An analysis of crop choice: Adapting to climate change in South American farms," Ecological Economics, Elsevier, vol. 67(1), pages 109-116, August.
    15. Drogué, Sophie & Jacquet, Florence & Subervie, Julie, 2014. "Introduction: Farmer’s adaptation to environmental changes," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 95(1).
    16. Joshi, Niraj Prakash & Maharjan, Keshav Lall & Piya, Luni, 2011. "Effect of climate variables on yield of major food-crops in Nepal -A time-series analysis-," MPRA Paper 35379, University Library of Munich, Germany.
    17. Ahmad, Munir & Nawaz, Muhammad & Iqbal, Muhammad & Javed, Sajid, 2014. "Analysing the Impact of Climate Change on Rice Productivity in Pakistan," MPRA Paper 72861, University Library of Munich, Germany.
    18. Christopher Timmins, 1999. "Estimating the Amenity Costs of Global Warming in Brazil: Getting the Most from Available Data," Working Papers 809, Economic Growth Center, Yale University.
    19. Kaixing Huang, 2015. "The Economic Impacts of Global Warming on Agriculture: the Role of Adaptation," School of Economics and Public Policy Working Papers 2015-20, University of Adelaide, School of Economics and Public Policy.
    20. Jesse Tack & Ardian Harri & Keith Coble, 2012. "More than Mean Effects: Modeling the Effect of Climate on the Higher Order Moments of Crop Yields," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(5), pages 1037-1054.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jagaec:v:31:y:1999:i:03:p:537-549_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/aae .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.