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

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  • 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.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4135.

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Date of creation: 01 Feb 2007
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Handle: RePEc:wbk:wbrwps:4135

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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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  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.
  2. 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.
  3. Robert Mendelsohn & Ariel Dinar, 2003. "Climate, Water, and Agriculture," Land Economics, University of Wisconsin Press, vol. 79(3), pages 328-341.
  4. 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?," World Bank Economic Review, World Bank Group, vol. 20(3), pages 367-388.
  5. Robert Mendelsohn & Larry Williams, 2004. "Comparing Forecasts of the Global Impacts of Climate Change," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 9(4), pages 315-333, October.
  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.
  7. Beach, Robert H. & Thomson, Allison M. & McCarl, Bruce A., 2010. "Climate Change Impacts On Us Agriculture," Proceedings Issues, 2010: Climate Change in World Agriculture: Mitigation, Adaptation, Trade and Food Security, June 2010, Stuttgart- Hohenheim, Germany 91393, International Agricultural Trade Research Consortium.
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Citations

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Cited by:
  1. Jolejole-Foreman, Maria Christina & Baylis, Katherine R. & Lipper, Leslie, 2012. "Land Degradation’s Implications on Agricultural Value of Production in Ethiopia: A look inside the bowl," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126251, International Association of Agricultural Economists.
  2. De Salvo, Maria & Raffaelli, Roberta & Moser, Riccarda, 2013. "The impact of climate change on permanent crops in an Alpine region: A Ricardian analysis," Agricultural Systems, Elsevier, vol. 118(C), pages 23-32.
  3. Wang, Jinxia & Mendelsohn, Robert & Dinar, Ariel & Huang, Jikun & Rozelle, Scott & Zhang, Lijuan, 2008. "Can China continue feeding itself ? the impact of climate change on agriculture," Policy Research Working Paper Series 4470, The World Bank.
  4. Kaminski, Jonathan & Kan, Iddo & Fleischer, Aliza, 2011. "A Structural Land-Use Analysis of Agricultural Adaptation to Climate Change: A Proactive Approach," Discussion Papers 120076, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  5. Zhou, Li & Turvey, Calum G., 2014. "Climate change, adaptation and China's grain production," China Economic Review, Elsevier, vol. 28(C), pages 72-89.
  6. Hansen, Zeynep K. & Lowe, Scott E. & Xu, Wenchao, 2014. "Long-term impacts of major water storage facilities on agriculture and the natural environment: Evidence from Idaho (U.S.)," Ecological Economics, Elsevier, vol. 100(C), pages 106-118.
  7. Luckmann, Jonas & Siddig, Khalid H.A. & Flaig, Dorothee & Grethe, Harald, 2012. "Mitigating Water Scarcity In Israel – A Computable General Equilibrium Analysis," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 133942, German Association of Agricultural Economists (GEWISOLA).
  8. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.

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