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Adapting to Climate Change Through Tile Drainage: A Structural Ricardian Analysis

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  • Meyer, Kevin
  • Keiser, David A.

Abstract

This paper provides the first estimates of the effects of climate change on agriculture while explicitly modeling tile drainage. We show in a simple conceptual model that the value of precipitation should differ between drained and non-drained land, implying that pooling these lands could bias estimates of the effects of climate change on land values. We test this hypothesis by estimating a Structural Ricardian model for U.S. counties east of the 100th meridian. Consistent with our theoretical model, our estimates show that the value of precipitation is higher on non-drained lands.

Suggested Citation

  • Meyer, Kevin & Keiser, David A., 2016. "Adapting to Climate Change Through Tile Drainage: A Structural Ricardian Analysis," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235932, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235932
    DOI: 10.22004/ag.econ.235932
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    Keywords

    Agricultural and Food Policy; Environmental Economics and Policy; Land Economics/Use;
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