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A Microeconometric Analysis of Adapting Portfolios to Climate Change: Adoption of Agricultural Systems in Latin America

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  • S. Niggol Seo

Abstract

This paper develops a microeconometric analysis of adapting portfolios in response to climate change using information on South American farmers' adoption of agricultural systems taken from approximately 2,000 household surveys. The results show that farmers in a hotter climate prefer a mixed system over specialized systems either in crops or livestock. Under a hot and dry scenario, the land values of all three systems would fall, but the damage would be much smaller in the mixed system ( - 10%) than for the farms specializing in crops ( - 20%). Farmers are predicted to lose 8% of their land's value under the Canadian Climatic Center (CCC) scenario, but only 2% under the Parallel Climate Model (PCM). Losses would increase to 18% if they do not adapt. Copyright 2010, Oxford University Press.

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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal Applied Economic Perspectives and Policy.

Volume (Year): 32 (2010)
Issue (Month): 3 ()
Pages: 489-514

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Handle: RePEc:oup:apecpp:v:32:y:2010:i:3:p:489-514

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Cited by:
  1. Seo, S. Niggol, 2011. "An analysis of public adaptation to climate change using agricultural water schemes in South America," Ecological Economics, Elsevier, vol. 70(4), pages 825-834, February.
  2. Cunha, Denis Antonio da & Coelho, Alexandre Braganca & Feres, Jose & Braga, Marcelo Jose, 2012. "Impacts of climate change on Brazilian agriculture: an analysis of irrigation as an adaptation strategy," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126223, International Association of Agricultural Economists.
  3. Seo, S. Niggol, 2011. "Is an integrated farm more resilient against climate change? A micro-econometric analysis of portfolio diversification in African agriculture: Reply," Food Policy, Elsevier, vol. 36(3), pages 450-451, June.

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