Adapting Natural Resource Enterprises under Global Warming in South America: A Mixed Logit Analysis
This paper develops an integrated model of adapting natural resource intensive enterprises in Latin America to future climate changes. Based on about 2,000 rural household surveys, we model six specialized and diversified resource enterprises across seventeen land covers. We estimate random coefficients of climatic parameters with a mixed logit model. By 2020, under a hotter and drier CCC scenario, crops-only and cropforests enterprises are predicted to fall by 6.2%, and 0.6% respectively. Offsetting these losses, livestock-only enterprise increases by 5.5% and crops-livestock-forests enterprise increases by 0.7%. These changes magnify over time through 2060 by which time the crops-livestock enterprise increases by more than 5%. Adaptation measures should be designed in a manner that captures the unique characteristics of Latin American ecosystems.
Volume (Year): Volume 12 Number 2 (2012)
Issue (Month): Spring 2012 (January)
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