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A Ricardian Analysis of the Impact of Climate Change on European Agriculture

Author

Listed:
  • Steven Passel

    (University of Antwerp
    Yale University
    Hasselt University)

  • Emanuele Massetti

    (Georgia Institute of Technology)

  • Robert Mendelsohn

    (Yale University)

Abstract

This research estimates the impact of climate on European agriculture using a continental scale Ricardian analysis. Climate, soil, geography and regional socio-economic variables are matched with farm level data from 41,030 farms across Western Europe. We demonstrate that a median quantile regression outperforms OLS given farm level data. The results suggest that European farms are slightly more sensitive to warming than American farms with impacts from $$+$$ + 5 to $$-$$ - 32 % by 2100 depending on the climate scenario. Farms in Southern Europe are predicted to be particularly sensitive, suffering losses of $$-$$ - 5 to $$-$$ - 9 % per degree Celsius.

Suggested Citation

  • Steven Passel & Emanuele Massetti & Robert Mendelsohn, 2017. "A Ricardian Analysis of the Impact of Climate Change on European Agriculture," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 725-760, August.
    • Handle: RePEc:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-016-0001-y
    DOI: 10.1007/s10640-016-0001-y
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    More about this item

    Keywords

    Ricardian analysis; Climate change; European agriculture; Climate change economics; Quantile regression;
    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
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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