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A Micro-econometric Analysis of Climate Change Impacts on Livestock Management in African Agriculture

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Author Info
Seo, S. Niggol

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Abstract

This paper develops a new analysis to measure climate change impacts on livestock management taking into account the interactions between crops and livestock. A micro-econometric analysis on the choice of agricultural system and on the conditional income for each system is used. The paper used African data collected from 9000 farmers across 11 countries in Africa. The results indicate that when climate is hot, farmers prefer mixed farms over specialized farms on either crops or livestock. When climate is wet, they often choose crops over livestock. Half a century later, livestock only farms are predicted to decrease by 2% under CCC, 5% under CCSR, and 7% under PCM. On the other hand, livestock farms with also crops are predicted to increase by 5% under CCC and CCSR, and 11% under PCM. Livestock only farm profit also falls by 40% under CCC, 250% under CCSR, and 600% under PCM. The profit of livestock farm with crops, however, increases by 17% under PCM. Under the CCC, expected farm income falls by 12%. On the other hand, farm income increases by 13% under the PCM scenario. The damage estimate (benefit estimate) on agriculture as a whole with the transition to the best system is lower (higher) than that without system switch.

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File URL: http://mpra.ub.uni-muenchen.de/6903/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6903.

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Date of creation: 27 Jan 2008
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Handle: RePEc:pra:mprapa:6903

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Related research
Keywords: Climate Change Livestock Joint Analysis Micro-econometrics

Find related papers by JEL classification:
Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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  1. 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. [Downloadable!] (restricted)
  2. Kelly, David L. & Kolstad, Charles D. & Mitchell, Glenn T., 2005. "Adjustment costs from environmental change," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 468-495, November. [Downloadable!] (restricted)
  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  4. Ariel Dinar & Mark Campbell & David Zilberman, 1992. "Adoption of improved irrigation and drainage reduction technologies under limiting environmental conditions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(4), pages 373-398, July. [Downloadable!] (restricted)
  5. James N. Brown & Harvey S. Rosen, 1982. "On the Estimation of Structural Hedonic Price Models," NBER Technical Working Papers 0018, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. 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. [Downloadable!] (restricted)
  7. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March. [Downloadable!] (restricted)
  8. Ivar Ekeland & James J. Heckman & Lars Nesheim, 2002. "Identifying Hedonic Models," American Economic Review, American Economic Association, vol. 92(2), pages 304-309, May. [Downloadable!]
    Other versions:
  9. Seo, Sung-No Niggol & Mendelsohn, Robert & Munasinghe, Mohan, 2005. "Climate change and agriculture in Sri Lanka: a Ricardian valuation," Environment and Development Economics, Cambridge University Press, vol. 10(05), pages 581-596, October. [Downloadable!]
  10. S. Niggol Seo & Robert Mendelsohn, 2008. "Measuring impacts and adaptations to climate change: a structural Ricardian model of African livestock management-super-1," Agricultural Economics, International Association of Agricultural Economists, vol. 38(2), pages 151-165, 03. [Downloadable!] (restricted)
  11. Henk A. J. Moll, 2005. "Costs and benefits of livestock systems and the role of market and nonmarket relationships," Agricultural Economics, International Association of Agricultural Economists, vol. 32(2), pages 181-193, 03. [Downloadable!] (restricted)
  12. 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. [Downloadable!]
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This page was last updated on 2008-11-18.


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