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Modeling agricultural production risk and the adaptation to climate change

  • Robert Finger
  • Stéphanie Schmid

An approach that integrates biophysical simulations in an economic model is used to analyze the impact of climate change on Swiss corn and winter wheat production. Adaptation options such as changes in sowing dates, changes in production intensity, and the adoption of irrigation farming are considered in the model. By carrying out sensitivity analysis with different scenarios, we find farmers’ adaptation actions and crop yeilds to be very sensitive to both climate change and output prices. Moreover, our model results show that simple adaptation measures are sufficient to generate higher and less variable crop yields in the future.

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Article provided by Emerald Group Publishing in its journal Agricultural Finance Review.

Volume (Year): 68 (2008)
Issue (Month): 1 (September)
Pages: 25-41

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Handle: RePEc:eme:afrpps:v:68:y:2008:i:1:p:25-41
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  1. Teresa Serra & David Zilberman & Barry K. Goodwin & Allen Featherstone, 2006. "Effects of decoupling on the mean and variability of output," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(3), pages 269-288, September.
  2. Fuhrer, Jurg & Beniston, Martin & Calanca, Pierluigi & Torriani, Daniele Simone, 2007. "Alternative Hedging Strategies in Maize Production to Cope with Climate Variability and Change," 101st Seminar, July 5-6, 2007, Berlin Germany 9275, European Association of Agricultural Economists.
  3. Finger, Robert & Hediger, Werner, 2007. "The Application of Robust Regression to a Production Function Comparison – the Example of Swiss Corn," MPRA Paper 4740, University Library of Munich, Germany.
  4. Isik, Murat & Khanna, Madhu, 2002. "Stochastic Technology, Risk Preferences And Adoption Of Site-Specific Technologies," 2002 Annual meeting, July 28-31, Long Beach, CA 19858, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Antle, John M. & Capalbo, Susan Marie, 2000. "Econometric-Process Models For Integrated Assessment Of Agricultural Production Systems," Trade Research Center Research Discussion Papers 29234, Montana State University, Department of Agricultural Economics and Economics.
  6. Neil R. Miller, 2006. "Is Site-Specific Yield Response Consistent over Time? Does It Pay?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 471-483.
  7. Khanna, Madhu & Isik, Murat & Winter-Nelson, Alex, 2000. "Investment in site-specific crop management under uncertainty: implications for nitrogen pollution control and environmental policy," Agricultural Economics, Blackwell, vol. 24(1), pages 9-21, December.
  8. Murat Isik & Stephen Devadoss, 2006. "An analysis of the impact of climate change on crop yields and yield variability," Applied Economics, Taylor & Francis Journals, vol. 38(7), pages 835-844.
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