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Global Warming and German Agriculture Impact Estimations Using a Restricted Profit Function

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Author Info
Günter Lang ()

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Abstract

This study uses the concept of shadow prices formeasuring the impacts of climate change. By estimatinga restricted profit function rather than a cost or aproduction function the explanatory power of the modelis increased because of an endogenous outputstructure. Using low aggregated panel data on WesternGerman farmers, the results imply that the agricultural production process is significantly influenced by climate conditions. Simulation results using a 2 ×CO2 climate scenario show positive impactsfor all regions in Germany. Interestingly, the spatialdistribution of the gains is indicating no advantagefor those regions, which currently suffer frominsufficient temperature. Finally, the importance ofan endogenous output structure is confirmed by thefinding that the desired product mix will drasticallychange. Copyright Kluwer Academic Publishers 2001

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File URL: http://hdl.handle.net/10.1023/A:1011178931639
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 19 (2001)
Issue (Month): 2 (June)
Pages: 97-112
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Handle: RePEc:kap:enreec:v:19:y:2001:i:2:p:97-112

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Web page: http://www.springerlink.com/link.asp?id=100263

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords: agriculture; climate change; environmental valuation; global warming; impact study; restricted profit function;

References listed on IDEAS
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  1. Kelly, David L. & Kolstad, Charles D. & Mitchell, Glenn T., 2005. "Adjustment costs from environmental change," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 468-495, November. [Downloadable!] (restricted)
  2. 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 753-71, September. [Downloadable!] (restricted)
  3. Charles Kolstad & David Kelly & Glenn Mitchell, 1999. "Adjustment Costs from Environmental Change Induced by Incomplete Information and Learning," University of California at Santa Barbara, Economics Working Paper Series wp10-99, Department of Economics, UC Santa Barbara. [Downloadable!]
    Other versions:
  4. Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January. [Downloadable!] (restricted)
    Other versions:
  5. Reilly, John & Hohmann, Neil, 1993. "Climate Change and Agriculture: The Role of International Trade," American Economic Review, American Economic Association, vol. 83(2), pages 306-12, May. [Downloadable!] (restricted)
  6. Livernois, John R & Ryan, David L, 1989. "Testing for Non-jointness in Oil and Gas Exploration: A Variable Profit Function Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(2), pages 479-504, May. [Downloadable!] (restricted)
  7. Dixon, Bruce L. & Hollinger, Steven E. & Garcia, Philip & Tirupattur, Viswanath, 1994. "Estimating Corn Yield Response Models To Predict Impacts Of Climate Change," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(01), July. [Downloadable!]
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