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Impact of Climate Change on Corn Production in the U.S.: Evidence from Panel Study

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  • Jaehyuk LEE
  • Nazif DURMAZ

Abstract

This paper determines the impact of climate change on corn production using a county-level panel data from the Corn-Belt States. The estimates of elasticity of corn production with respect to temperature and precipitation are -8.602 and 15.329, respectively. The drought indices, PDSI and CMI, if the drought condition improves one unit, the corn production increases by about 2% and 10% respectively that is equivalent to about 3 and14 bushels per acre. Our simulation results indicate that such an increase will result in a decrease in corn production by about 15 to 90 bushels per acre by 2100.

Suggested Citation

  • Jaehyuk LEE & Nazif DURMAZ, 2016. "Impact of Climate Change on Corn Production in the U.S.: Evidence from Panel Study," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 16(1), pages 93-104.
    • Handle: RePEc:eaa:aeinde:v:16:y:2016:i:1_8
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    File URL: http://www.usc.es/~economet/reviews/aeid1618.pdf
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    References listed on IDEAS

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    1. Wolfram Schlenker & W. Michael Hanemann & Anthony C. Fisher, 2006. "The Impact of Global Warming on U.S. Agriculture: An Econometric Analysis of Optimal Growing Conditions," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 113-125, February.
    2. Huang, Haixiao & Khanna, Madhu, 2010. "An Econometric Analysis of U.S. Crop Yield and Cropland Acreage: Implications for the Impact of Climate Change," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61527, Agricultural and Applied Economics Association.
    3. Olivier Deschênes & Michael Greenstone, 2007. "The Economic Impacts of Climate Change: Evidence from Agricultural Output and Random Fluctuations in Weather," American Economic Review, American Economic Association, vol. 97(1), pages 354-385, March.
    4. Paul, Catherine J. Morrison & Nehring, Richard, 2005. "Product diversification, production systems, and economic performance in U.S. agricultural production," Journal of Econometrics, Elsevier, vol. 126(2), pages 525-548, June.
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    Cited by:

    1. Eric Nazindigouba KERE & Somlanare Romuald KINDA, 2016. "Climate Change and Food Security: Do Spatial Spillovers Matter?," Working Papers 201604, CERDI.

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    More about this item

    Keywords

    Climate change; Corn production; Drought Index; the Palmer Drought Severity Index (PDSI); Crop Moisture Index (CMI).;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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