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A Structural Land-Use Analysis of Agricultural Adaptation to Climate Change: A Proactive Approach

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Listed author(s):
  • Jonathan Kaminski
  • Iddo Kan
  • Aliza Fleischer

Abstract

This article proposes a proactive approach for analyzing agricultural adaptation to climate change wherein agricultural production technologies are regarded as potential targets of research and development (R&D) efforts. We develop a structural land-use model wherein farmers maximize profit by allocating their land among crop-technology bundles. Proactive R&D directions are derived by identifying the technological attributes through which climate change reduces overall agricultural profitability, despite farmers reallocating their land into bundles. We find that in Israel, long-term losses stem from increases in crops' input requirements and changes in the inter- and intra-annual distribution of precipitations. Therefore, we identify these vulnerable points as the main potential targets of further R&D efforts. Copyright 2013, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/ajae/aas075
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Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 95 (2013)
Issue (Month): 1 ()
Pages: 70-93

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Handle: RePEc:oup:ajagec:v:95:y:2013:i:1:p:70-93
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  1. Kurukulasuriya, Pradeep & Mendelsohn, Robert, 2008. "Crop switching as a strategy for adapting to climate change," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 2(1), March.
  2. Wolfram Schlenker & W. Michael Hanemann & Anthony C. Fisher, 2005. "Will U.S. Agriculture Really Benefit from Global Warming? Accounting for Irrigation in the Hedonic Approach," American Economic Review, American Economic Association, vol. 95(1), pages 395-406, March.
  3. 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.
  4. Pradeep Kurukulasuriya & Robert Mendelsohn & Rashid Hassan & James Benhin & Temesgen Deressa & Mbaye Diop & Helmy Mohamed Eid & K. Yerfi Fosu & Glwadys Gbetibouo & Suman Jain & Ali Mahamadou & Renneth, 2006. "Will African Agriculture Survive Climate Change?," World Bank Economic Review, World Bank Group, vol. 20(3), pages 367-388.
  5. 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.
  6. Robert K. Kaufmann & Seth E. Snell, 1997. "A Biophysical Model of Corn Yield: Integrating Climatic and Social Determinants," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 178-190.
  7. Seo, S. Niggol & Mendelsohn, Robert, 2008. "An analysis of crop choice: Adapting to climate change in South American farms," Ecological Economics, Elsevier, vol. 67(1), pages 109-116, August.
  8. Lichtenberg, Erik & Zilberman, David & Bogen, Kenneth T., 1989. "Regulating environmental health risks under uncertainty: Groundwater contamination in California," Journal of Environmental Economics and Management, Elsevier, vol. 17(1), pages 22-34, July.
  9. Ian W. Hardie & Peter J. Parks, 1997. "Land Use with Heterogeneous Land Quality: An Application of an Area Base Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 299-310.
  10. Douglas J. Miller & Andrew J. Plantinga, 1999. "Modeling Land Use Decisions with Aggregate Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 180-194.
  11. 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.
  12. Aliza Fleischer & Yacov Tsur, 2009. "The Amenity Value of Agricultural Landscape and Rural-Urban Land Allocation," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 132-153.
  13. Rulon D. Pope & Richard E. Just, 2003. "Distinguishing Errors in Measurement from Errors in Optimization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 348-358.
  14. Alain Carpentier & Elodie Letort, 2009. "Modeling acreage decisions within the multinomial Logit framework," Working Papers SMART - LERECO 09-17, INRA UMR SMART-LERECO.
  15. Miller, Douglas & Plantinga, Andrew J., 1999. "Modeling Land Use Decisions with Aggregate Data," Staff General Research Papers Archive 1487, Iowa State University, Department of Economics.
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Cited by:

  1. Fabienne Féménia & Elodie Letort, 2016. "How to achieve significant reduction in pesticide use? An empirical evaluation of the impacts of pesticide taxation associated to a change in cropping practice," Working Papers SMART - LERECO 16-02, INRA UMR SMART-LERECO.
  2. McFadden, Jonathan & Miranowski, John, "undated". "Climate Change Impacts on the Intensive and Extensive Margins of US Agricultural Land," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170512, Agricultural and Applied Economics Association.
  3. Alain Carpentier & Elodie Letort, 2014. "Multicrop Production Models with Multinomial Logit Acreage Shares," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(4), pages 537-559, December.
  4. Femenia, Fabienne & Letort, Elodie, 2016. "How to significantly reduce pesticide use: An empirical evaluation of the impacts of pesticide taxation associated with a change in cropping practice," Ecological Economics, Elsevier, vol. 125(C), pages 27-37.
  5. Femenia, Fabienne & Letort, Elodie, 2014. "Economic incentives to the adoption of low input cropping systems: the case of multi-resistant wheat cultivars in France," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182743, European Association of Agricultural Economists.
  6. Kan, Iddo & Kimhi, Ayal & Kaminski, Jonathan, 2015. "Climate-Change Impacts on Agriculture and Food Markets: Combining a Micro-Level Structural Land-Use Model and a Market-Level Equilibrium Model," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205128, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
  7. Spolador, Humberto Francisco Silva & Smith, Rodney B.W., 2014. "The Effects of Climate Changes on Brazilian Agricultural Production – A Multisector Growth Model Analysis," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170294, Agricultural and Applied Economics Association.
  8. Kan, Iddo & Kimhi, Ayal & Kaminski, Jonathan, 2014. "The impact of climate change on agriculture and food prices: combining a micro land use model and a market equilibrium model," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183024, European Association of Agricultural Economists.
  9. Fogarasi, József & Kemény, Gábor & Molnár, András & Keményné Horváth, Zsuzsanna & Zubor-Nemes, Anna & Kiss, Andrea, 2016. "Modelling climate effects on Hungarian winter wheat and maize yields," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 118(2), August.
  10. Kan, Iddo & Kimhi, Ayal & Kaminski, Jonathan, 2015. "Micro-Macro Impacts of Climate-Change on Agriculture and Food Markets," 2015 Conference, August 9-14, 2015, Milan, Italy 211828, International Association of Agricultural Economists.
  11. Czyżewski, Bazyli, 2016. "Political Rents of European Farmers in the Sustainable Development Paradigm. International, national and regional perspective," MPRA Paper 74253, University Library of Munich, Germany.
  12. Czyżewski, Bazyli & Trojanek, Radosław, 0. "Drivers of agricultural land prices in terms of different functions of rural areas in Poland," Problems of Agricultural Economics, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
  13. Njuki, Eric & Bravo-Ureta, Boris E., 2016. "Measuring agricultural water productivity using a partial factor productivity approach," 2016 AAAE Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246948, African Association of Agricultural Economists (AAAE).

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