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The Impact of Climate Change on the Profitability of Site Specific Technologies

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  • Finger, Robert
  • Gerwig, Claude N.

Abstract

Site Specific Technologies (SST) can reduce environmental pollution caused by common agricultural practice. Using a case study for corn yields, we investigate the impact of climate change (CC) on profitability of SSTs. We find CC to increase spatial variability of soils with respect to optimal input application and yield variability. This leads, ceteris paribus, to higher incentives for SST adoption in the future.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 4792.

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Date of creation: Sep 2007
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Handle: RePEc:pra:mprapa:4792

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Keywords: Climate Change; Site Specific Technologies; Adaptation; Crop Production Function;

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  1. Murat Isik & Madhu Khanna, 2003. "Stochastic Technology, Risk Preferences, and Adoption of Site-Specific Technologies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 305-317.
  2. Finger, Robert & Schmid, Stéphanie, 2007. "Modelling Agricultural Production Risk and the Adaptation to Climate Change," MPRA Paper 3943, University Library of Munich, Germany.
  3. Pampolino, M.F. & Manguiat, I.J. & Ramanathan, S. & Gines, H.C. & Tan, P.S. & Chi, T.T.N. & Rajendran, R. & Buresh, R.J., 2007. "Environmental impact and economic benefits of site-specific nutrient management (SSNM) in irrigated rice systems," Agricultural Systems, Elsevier, vol. 93(1-3), pages 1-24, March.
  4. Isik, Murat & Khanna, Madhu, 2002. "Variable-Rate Nitrogen Application Under Uncertainty: Implications For Profitability And Nitrogen Use," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(01), July.
  5. Khanna, Madhu & Isik, Murat & Winter-Nelson, Alex, 2000. "Investment in site-specific crop management under uncertainty: implications for nitrogen pollution control and environmental policy," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 24(1), December.
  6. Eitzinger, J. & Stastna, M. & Zalud, Z. & Dubrovsky, M., 2003. "A simulation study of the effect of soil water balance and water stress on winter wheat production under different climate change scenarios," Agricultural Water Management, Elsevier, vol. 61(3), pages 195-217, July.
  7. Robert Finger & Werner Hediger, 2008. "The Application of Robust Regression to a Production Function Comparison – the Example of Swiss Corn," IED Working paper 08-02, IED Institute for Environmental Decisions, ETH Zurich.
  8. Khanna, Madhu & Isik, Murat & Winter-Nelson, Alex, 2000. "Investment in site-specific crop management under uncertainty: implications for nitrogen pollution control and environmental policy," Agricultural Economics, Blackwell, vol. 24(1), pages 9-21, December.
  9. Luc Anselin & Rodolfo Bongiovanni & Jess Lowenberg-DeBoer, 2004. "A Spatial Econometric Approach to the Economics of Site-Specific Nitrogen Management in Corn Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 675-687.
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