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Climate Change and Agriculture: Subsistence Farmers' Response to Extreme Heat

Author

Listed:
  • Fernando M. Aragón
  • Francisco Oteiza
  • Juan Pablo Rud

Abstract

This paper examines how subsistence farmers respond to extreme heat. Using microdata from Peruvian households, we find that high temperatures reduce agricultural productivity, increase area planted, and change crop mix. These findings are consistent with farmers using input adjustments as a short-term mechanism to attenuate the effect of extreme heat on output. This response seems to complement other coping strategies, such as selling livestock, but exacerbates the drop in yields, a standard measure of agricultural productivity. Using our estimates, we show that accounting for land adjustments is important to quantify damages associated with climate change.

Suggested Citation

  • Fernando M. Aragón & Francisco Oteiza & Juan Pablo Rud, 2021. "Climate Change and Agriculture: Subsistence Farmers' Response to Extreme Heat," American Economic Journal: Economic Policy, American Economic Association, vol. 13(1), pages 1-35, February.
    • Handle: RePEc:aea:aejpol:v:13:y:2021:i:1:p:1-35
    DOI: 10.1257/pol.20190316
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    More about this item

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Climate Change and Agriculture: Subsistence Farmers' Response to Extreme Heat (American Economic Journal: Economic Policy 2021) in ReplicationWiki

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