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A Ricardian analysis of Mexican farms

Author

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  • MENDELSOHN, ROBERT
  • ARELLANO-GONZALEZ, JESUS
  • CHRISTENSEN, PETER

Abstract

This paper measures the impact of climate on Mexican agriculture using a Ricardian analysis. The analysis relies on economic data from 621 individual farms that were collected in 2002. Data on climate, elevation, soils, and distance to nearest city were matched with each farm. The analysis reveals that farmland values in Mexico are sensitive to climate. On average, warmer temperatures reduce land value by 4,000 to 6,000 pesos per degree Celsius. Examining three climate scenarios for 2100, the models predict average losses of between −42% to −54% of land value in Mexico. As a percent of income, rainfed farms will suffer slightly larger damages than irrigated farms but comparisons between small and large farms are mixed.

Suggested Citation

  • Mendelsohn, Robert & Arellano-Gonzalez, Jesus & Christensen, Peter, 2010. "A Ricardian analysis of Mexican farms," Environment and Development Economics, Cambridge University Press, vol. 15(02), pages 153-171, April.
  • Handle: RePEc:cup:endeec:v:15:y:2010:i:02:p:153-171_99
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    Citations

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    Cited by:

    1. Alejandro Lopez-Feldman, 2013. "Climate change, agriculture, and poverty: A household level analysis for rural Mexico," Economics Bulletin, AccessEcon, vol. 33(2), pages 1126-1139.
    2. Birthal, P.S. & Negi, Digvijay S. & Kumar, Shiv & Aggarwal, Shaily & Suresh, A. & Khan, Md. Tajuddin, 2014. "How Sensitive is Indian Agriculture to Climate Change?," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 69(4).
    3. Basurto, Saul, 2016. "A Mexican Ricardian analysis: land rental prices or net revenues?," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236362, Agricultural Economics Society.
    4. Antonio Yúnez Naude & Jesús Arellano González & Jimena Méndez Navarro, 2010. "Cambios en el bienestar de 1990 a 2005: un estudio espacial para México," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 25(2), pages 363-406.
    5. McCarl, Bruce A. & Attavanich, Witsanu & Musumba, Mark & Mu, Jianhong E. & Aisabokhae, Ruth, 2011. "Land Use and Climate Change," MPRA Paper 83993, University Library of Munich, Germany, revised 2014.
    6. repec:spr:endesu:v:19:y:2017:i:2:d:10.1007_s10668-015-9755-6 is not listed on IDEAS
    7. 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.
    8. Meza-Pale, Pablo & Yunez-Naude, Antonio, 2015. "The Effect of Rainfall Variation on Agricultural Households: Evidence from Mexico," 2015 Conference, August 9-14, 2015, Milan, Italy 212457, International Association of Agricultural Economists.
    9. Attavanich, Witsanu, 2013. "The Effect of Climate Change on Thailand’s Agriculture," MPRA Paper 84005, University Library of Munich, Germany, revised Feb 2014.
    10. De Salvo, Maria & Begalli, Diego & Capitello, Roberta & Signorello, Giovanni, 2015. "A spatial micro-econometric approach to estimating climate change impacts on wine firm performance: A case study from Moldavia region, Romania," Agricultural Systems, Elsevier, vol. 141(C), pages 48-57.
    11. Mora-Rivera, José Jorge, 2013. "efectos del cambio climático sobre la renta de la tierra de guatemala: un enfoque ricardiano," eseconomía, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 0(38), pages 7-38, segundo t.

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