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Climate change, irrigation, and Israeli agriculture : will warming be harmful ?

Author

Listed:
  • Fleischer, Aliza
  • Lichtman, Ivgenia
  • Mendelsohn, Robert

Abstract

The authors use a Ricardian model to test the relationship between annual net revenues and climate across Israeli farms. They find that it is important to include the amount of irrigation water available to each farm in order to measure the response of farms to climate. With irrigation water omitted, the model predicts that climate change is strictly beneficial. But with water included, the model predicts that only modest climate changes are beneficial, while drastic climate change in the long run will be harmful. Using the Atmospheric Oceanic Global Circulation Models scenarios, the authors show that farm net revenue is expected to increase by 16 percent in 2020, while in 2100 farm net revenue is expected to drop by 60-390 percent varying between the different scenarios. Although Israel has a relatively warm climate, a mild increase in temperature is beneficial due to the ability to supply international markets with farm products early in the season. The findings lead to the conclusion that securing water rights to the farmers and international trade agreements can be important policy measures to help farmers adapt to climate change.

Suggested Citation

  • Fleischer, Aliza & Lichtman, Ivgenia & Mendelsohn, Robert, 2007. "Climate change, irrigation, and Israeli agriculture : will warming be harmful ?," Policy Research Working Paper Series 4135, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4135
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    References listed on IDEAS

    as
    1. Pradeep Kurukulasuriya & Robert Mendelsohn & Rashid Hassan & James Benhin & Temesgen Deressa & Mbaye Diop & Helmy Mohamed Eid & K. Yerfi Fosu & Glwadys Gbetibouo & Suman Jain & Ali Mahamadou & Renneth, 2006. "Will African Agriculture Survive Climate Change?," The World Bank Economic Review, World Bank, vol. 20(3), pages 367-388.
    2. 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 753-771, September.
    3. 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.
    4. Beach, Robert H. & Thomson, Allison M. & McCarl, Bruce A., 2010. "Climate Change Impacts On Us Agriculture," 2010: Climate Change in World Agriculture: Mitigation, Adaptation, Trade and Food Security, June 2010, Stuttgart-Hohenheim, Germany 91393, International Agricultural Trade Research Consortium.
    5. Richard M. Adams, 1989. "Global Climate Change and Agriculture: An Economic Perspective," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(5), pages 1272-1279.
    6. Joel B. Smith & Robert Mendelsohn (ed.), 2006. "The Impact of Climate Change on Regional Systems," Books, Edward Elgar Publishing, number 4129.
    7. Robert Mendelsohn & Ariel Dinar, 2003. "Climate, Water, and Agriculture," Land Economics, University of Wisconsin Press, vol. 79(3), pages 328-341.
    8. Cline, William R, 1996. "The Impact of Global Warming on Agriculture: Comment," American Economic Review, American Economic Association, vol. 86(5), pages 1309-1311, December.
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    Full references (including those not matched with items on IDEAS)

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    Keywords

    Climate Change; Water Supply and Sanitation Governance and Institutions; Water Supply and Systems; Water and Industry; Common Property Resource Development;
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