Using an exhaustive panel dataset of the German agricultural sector, this paper is evaluating the relationship between climate conditions and land prices. The main advantage of this so-called hedonic approach is the consideration of the full range of adaptation options to the climatic environment. A Box-Cox form is employed to allow for very flexible relationships between land prices, warmth, moisture, and different socioeconomic variables. In a second step, the estimated results are used to forecast the impact of global climate change on the farming sector. The results show that a change of the temperature level has stronger impacts than a change of rainfall. Using a greenhouse warming scenario, German farmers are expected to be winners of climate change at least in the short run. Maximum gains are estimated with a temperature increase of +1.0°C against the current levels. Should the temperature increase surpass 1.8°C, however, the impact on the farming sector is clearly negative.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Universitaet Augsburg, Institute for Economics in its series Discussion Paper Series with number
233.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.: