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A Structural Land-Use Analysis of Agricultural Adaptation to Climate Change: A Proactive Approach

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  • Jonathan Kaminski
  • Iddo Kan
  • Aliza Fleischer

Abstract

This article proposes a proactive approach for analyzing agricultural adaptation to climate change wherein agricultural production technologies are regarded as potential targets of research and development (R&D) efforts. We develop a structural land-use model wherein farmers maximize profit by allocating their land among crop-technology bundles. Proactive R&D directions are derived by identifying the technological attributes through which climate change reduces overall agricultural profitability, despite farmers reallocating their land into bundles. We find that in Israel, long-term losses stem from increases in crops' input requirements and changes in the inter- and intra-annual distribution of precipitations. Therefore, we identify these vulnerable points as the main potential targets of further R&D efforts. Copyright 2013, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/ajae/aas075
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 95 (2013)
Issue (Month): 1 ()
Pages: 70-93

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Handle: RePEc:oup:ajagec:v:95:y:2013:i:1:p:70-93

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  1. Fleischer, Aliza & Lichtman, Ivgenia & Mendelsohn, Robert, 2007. "Climate change, irrigation, and Israeli agriculture : will warming be harmful ?," Policy Research Working Paper Series 4135, The World Bank.
  2. Robert K. Kaufmann & Seth E. Snell, 1997. "A Biophysical Model of Corn Yield: Integrating Climatic and Social Determinants," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 178-190.
  3. Miller, Douglas & Plantinga, Andrew J., 1999. "Modeling Land Use Decisions with Aggregate Data," Staff General Research Papers 1487, Iowa State University, Department of Economics.
  4. Aliza Fleischer & Yacov Tsur, 2009. "The Amenity Value of Agricultural Landscape and Rural-Urban Land Allocation," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 132-153.
  5. Douglas J. Miller & Andrew J. Plantinga, 1999. "Modeling Land Use Decisions with Aggregate Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 180-194.
  6. Ian W. Hardie & Peter J. Parks, 1997. "Land Use with Heterogeneous Land Quality: An Application of an Area Base Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 299-310.
  7. Pradeep Kurukulasuriya & Robert Mendelsohn & Rashid Hassan & James Benhin & Temesgen Deressa & Mbaye Diop & Helmy Mohamed Eid & K. Yerfi Fosu & Glwadys Gbetibouo & Suman Jain & Ali Mahamadou & Renneth, 2006. "Will African Agriculture Survive Climate Change?," World Bank Economic Review, World Bank Group, vol. 20(3), pages 367-388.
  8. Kurukulasuriya, Pradeep & Mendelsohn, Robert, 2008. "Crop switching as a strategy for adapting to climate change," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 2(1), March.
  9. Cline, William R, 1996. "The Impact of Global Warming on Agriculture: Comment," American Economic Review, American Economic Association, vol. 86(5), pages 1309-11, December.
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  11. 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.
  12. 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.
  13. Lichtenberg, Erik & Zilberman, David & Bogen, Kenneth T., 1989. "Regulating environmental health risks under uncertainty: Groundwater contamination in California," Journal of Environmental Economics and Management, Elsevier, vol. 17(1), pages 22-34, July.
  14. Alain Carpentier & Elodie Letort, 2009. "Modeling acreage decisions within the multinomial Logit framework," Working Papers SMART - LERECO 09-17, INRA UMR SMART.
  15. 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.
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