IDEAS home Printed from https://ideas.repec.org/a/eee/agisys/v118y2013icp23-32.html
   My bibliography  Save this article

The impact of climate change on permanent crops in an Alpine region: A Ricardian analysis

Author

Listed:
  • De Salvo, Maria
  • Raffaelli, Roberta
  • Moser, Riccarda

Abstract

The Ricardian approach has been applied to many different geographic contexts and most applications concern large countries. Only few studies deal with Europe. This paper applies the Ricardian approach to measure the impact of climate on the agricultural system of a small Italian Alpine region where permanent cultivations are the main crop. Structural and economic data about farmers growing apples and grapes are extracted from the Italian Farm Accountancy Data Network (FADN). It tests three possible functional forms and it highlights the importance of controlling not only for farms’ characteristics but also for farmers’ strategic decisions such as specialization and quality certification. In contrast with overall beneficial effects of climate change found for broad areas in Europe (Germany and England), climate change seems to imply a reduction in annual net revenues in our study area. From a methodological point of view, results show that if there is enough climatic variation across the sample and suitable control variables are available, the Ricardian approach can be applied also on a small territorial scale, even though the results depend heavily on the adopted functional form.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:agisys:v:118:y:2013:i:c:p:23-32 DOI: 10.1016/j.agsy.2013.02.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308521X1300022X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kelly, David L. & Kolstad, Charles D. & Mitchell, Glenn T., 2005. "Adjustment costs from environmental change," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 468-495, November.
    2. Cline, William R, 1996. "The Impact of Global Warming on Agriculture: Comment," American Economic Review, American Economic Association, vol. 86(5), pages 1309-1311, December.
    3. K. S. Kavi Kumar, 2011. "Climate sensitivity of Indian agriculture: do spatial effects matter?," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 4(2), pages 221-235.
    4. Fleischer, Aliza & Lichtman, Ivgenia & Mendelsohn, Robert, 2008. "Climate change, irrigation, and Israeli agriculture: Will warming be harmful?," Ecological Economics, Elsevier, vol. 65(3), pages 508-515, April.
    5. 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.
    6. Ana Iglesias & Sonia Quiroga & Marta Moneo & Luis Garrote, 2012. "From climate change impacts to the development of adaptation strategies: Challenges for agriculture in Europe," Climatic Change, Springer, vol. 112(1), pages 143-168, May.
    7. Salvatore Di Falco & Marcella Veronesi & Mahmud Yesuf, 2011. "Does Adaptation to Climate Change Provide Food Security? A Micro-Perspective from Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 825-842.
    8. Eid, Helmy M. & El-Marsafawy, Samia M. & Ouda, Samiha A., 2007. "Assessing the economic impacts of climate change on agriculture in Egypt : a ricardian approach," Policy Research Working Paper Series 4293, The World Bank.
    9. Christopher Timmins, 2006. "Endogenous Land use and the Ricardian Valuation of Climate Change," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, pages 119-142.
    10. Olivier Deschenes & Charles Kolstad, 2011. "Economic impacts of climate change on California agriculture," Climatic Change, Springer, vol. 109(1), pages 365-386, December.
    11. Marian Weber & Grant Hauer, 2003. "A Regional Analysis of Climate Change Impacts on Canadian Agriculture," Canadian Public Policy, University of Toronto Press, vol. 29(2), pages 163-179, June.
    12. 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 753-771, September.
    13. Ricardo, David, 1821. "On the Principles of Political Economy and Taxation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number ricardo1821.
    14. 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, pages 113-125.
    15. Seo, S. Niggol, 2008. "Assessing Relative Performance of Econometric Models in Measuring the Impact of Climate Change on Agriculture Using Spatial Autoregression," The Review of Regional Studies, Southern Regional Science Association, vol. 38(2), pages 195-209.
    16. 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.
    17. Jinxia Wang & Robert Mendelsohn & Ariel Dinar & Jikun Huang & Scott Rozelle & Lijuan Zhang, 2009. "The impact of climate change on China's agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 323-337, May.
    18. Kurukulasuriya, Pradeep & Mendelsohn, Robert, 2007. "Endogenous irrigation : the impact of climate change on farmers in Africa," Policy Research Working Paper Series 4278, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Miranda, Juan José & Corral, Leonardo & Blackman, Allen & Asner, Gregory & Lima, Eirivelthon, 2016. "Effects of Protected Areas on Forest Cover Change and Local Communities: Evidence from the Peruvian Amazon," World Development, Elsevier, pages 288-307.
    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. Prince Etwire & David Fielding & Victoria Kahui, 2017. "The impact of climate change on crop production in Ghana: A Structural Ricardian analysis," Working Papers 1706, University of Otago, Department of Economics, revised Apr 2017.
    4. Catherine Benjamin & Ewen Gallic, 2017. "Effects of Climate Change on Agriculture: a European case study," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 2017-16, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    5. Martina Bozzola & Emanuele Massetti & Robert Mendelsohn & Fabian Capitanio, 2017. "A Ricardian Analysis of the Impact of Climate Change on Italian Agriculture," Working Papers 2017.23, Fondazione Eni Enrico Mattei.
    6. 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, pages 48-57.
    7. Mintewab Bezabih & Salvatore Di Falco & Alemu Mekonnen, 2014. "Is it the climate or the weather? Differential economic impacts of climatic factors in Ethiopia," GRI Working Papers 148, Grantham Research Institute on Climate Change and the Environment.
    8. Birthal, Pratap S. & Negi, Digvijay S. & Khan, Md. Tajuddin & Agarwal, Shaily, 2015. "Is Indian agriculture becoming resilient to droughts? Evidence from rice production systems," Food Policy, Elsevier, vol. 56(C), pages 1-12.
    9. Tsvetan Tsvetanov & Lingqiao Qi & Deep Mukherjee & Farhed Shah & Boris Bravo-Ureta, 2016. "Climate Change And Land Use In Southeastern U.S.: Did The “Dumb Farmer” Get It Wrong?," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., pages 1-35.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agisys:v:118:y:2013:i:c:p:23-32. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/agsy .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.