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Impact Of Climate Change On Ghana’S Agriculture: A Structural Ricardian Analysis

Author

Listed:
  • Etwire, Prince Maxwell
  • Kahui, Viktoria
  • Fielding, David

Abstract

Several techniques have been used in the literature to estimate the economic impact of climate change on agriculture, many of which do not explicitly consider adaptation and thereby tend to produce biased estimates. Using a two-stage optimization procedure known as the structural Ricardian model, we estimate the impact of climate change on crop production by relying on climate, farmer and farm observations from Ghana. We make two contributions to the related literature. First, we estimate the response function between agricultural profits and land tenure system. In addition, we examine the influence of functional form on structural Ricardian estimates. We find that the impact of temperature on crop production is more noticeable than that of rainfall. In addition to climate, soil productivity and land tenure system influence crop selection and profit. Even though functional form does not seem to affect the structural Ricardian estimates, it influences the resulting predictions. Linear and semi-logarithmic specifications tend to simulate larger impacts of climate change as opposed to a Box-Cox transformation.

Suggested Citation

  • Etwire, Prince Maxwell & Kahui, Viktoria & Fielding, David, 2016. "Impact Of Climate Change On Ghana’S Agriculture: A Structural Ricardian Analysis," 2016 Conference, August 25-26, Nelson, New Zealand 260794, New Zealand Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:nzar16:260794
    DOI: 10.22004/ag.econ.260794
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