IDEAS home Printed from https://ideas.repec.org/p/ags/iaae12/126223.html
   My bibliography  Save this paper

Impacts of climate change on Brazilian agriculture: an analysis of irrigation as an adaptation strategy

Author

Listed:
  • Cunha, Denis Antonio da
  • Coelho, Alexandre Braganca
  • Feres, Jose
  • Braga, Marcelo Jose

Abstract

This paper aims to analyze the effects of climate change on Brazilian agriculture considering irrigation adoption as an adaptation strategy. Investigation on how climatic variability influences irrigation adoption was performed as well as whether this adaptation measure actually reduces producers’ vulnerability to climate change. We used matching methods to analyze the choice of irrigation in the first stage and the land values for two types of farmer (irrigators or dryland) in the second stage. Temperature and precipitation projections for the 2010-2099 time period were used, considering different climate scenarios, according the 4th Assessment Report of IPCC (2007). Simulation results showed that irrigation can be a very effective tool to counteract the harmful effects of climate change. Land values for irrigated production are less vulnerable than those of rainfed production. Farmers’ income tends to grow on lands where irrigation techniques are practiced, while on those where agricultural production is exclusively rainfed, losses can sum to approximately 14% in relation to current period. These conclusions confirm the need to invest in adaptation strategies in order to make Brazil ready to cope with the adverse effects of global climate change.

Suggested Citation

  • Cunha, Denis Antonio da & Coelho, Alexandre Braganca & Feres, Jose & Braga, Marcelo Jose, 2012. "Impacts of climate change on Brazilian agriculture: an analysis of irrigation as an adaptation strategy," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126223, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae12:126223
    DOI: 10.22004/ag.econ.126223
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/126223/files/Full%20Paper%20-%20IAAE%20-%20Cunha%20et%20al..pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.126223?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mendelsohn, Robert & Seo, Niggol, 2007. "Changing farm types and irrigation as an adaptation to climate change in Latin American agriculture," Policy Research Working Paper Series 4161, The World Bank.
    2. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    3. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801.
    4. Bryson, Alex & Dorsett, Richard & Purdon, Susan, 2002. "The use of propensity score matching in the evaluation of active labour market policies," LSE Research Online Documents on Economics 4993, London School of Economics and Political Science, LSE Library.
    5. Antonio Bento & Charles Towe & Jacqueline Geoghegan, 2007. "The Effects of Moratoria on Residential Development: Evidence from a Matching Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1211-1218.
    6. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
    7. Robert Mendelsohn & Ariel Dinar, 2009. "Climate Change and Agriculture," Books, Edward Elgar Publishing, number 12990.
    8. S. Niggol Seo, 2010. "A Microeconometric Analysis of Adapting Portfolios to Climate Change: Adoption of Agricultural Systems in Latin America," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(3), pages 489-514.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. Nicholas Stern, 2008. "The Economics of Climate Change," American Economic Review, American Economic Association, vol. 98(2), pages 1-37, May.
    14. Seo, S. Niggol, 2011. "An analysis of public adaptation to climate change using agricultural water schemes in South America," Ecological Economics, Elsevier, vol. 70(4), pages 825-834, February.
    15. Fisher, Anthony, 2009. "Climate Change and Agriculture Reconsidered," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt33v2d7vc, Department of Agricultural & Resource Economics, UC Berkeley.
    16. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sabrina Auci & Nicolò Barbieri & Manuela Coromaldi & Donatella Vignani, 2021. "Innovation for climate change adaptation and technical efficiency: an empirical analysis in the European agricultural sector," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 597-623, July.
    2. Cristina Cattaneo & Emanuele Massetti, 2019. "Does Harmful Climate Increase Or Decrease Migration? Evidence From Rural Households In Nigeria," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 10(04), pages 1-36, November.
    3. Fisher, Anthony, 2014. "Climate Science and Climate Economics," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt746627gz, Department of Agricultural & Resource Economics, UC Berkeley.
    4. Chau Trinh Nguyen & Frank Scrimgeour, 2022. "Measuring the impact of climate change on agriculture in Vietnam: A panel Ricardian analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 53(1), pages 37-51, January.
    5. BEN ZAIED, YOUNES & Zouabi, Oussama, 2015. "Climate change impacts on agriculture: A panel cointegration approach and application to Tunisia," MPRA Paper 64711, University Library of Munich, Germany.
    6. Duan, Hongbo & Yuan, Deyu & Cai, Zongwu & Wang, Shouyang, 2022. "Valuing the impact of climate change on China’s economic growth," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 155-174.
    7. Pires, Marcel Viana & Cunha, Dênis Antônio da, 2014. "Climate Change and Adaptive Strategies in Brazil: the economic effects of genetic breeding," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 52(4), pages 1-16, December.
    8. Fisher, A. C & Le, P. V, 2014. "Climate Policy: Science, Economics, and Extremes," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt6tj3j4jb, Department of Agricultural & Resource Economics, UC Berkeley.
    9. Seo, Niggol & Mendelsohn, Robert & Dinar, Ariel & Kurukulasuriya, Pradeep & Hassan, Rashid, 2008. "Long-term adaptation : selecting farm types across agro-ecological zones in Africa," Policy Research Working Paper Series 4602, The World Bank.
    10. Balistreri, Edward J. & Tarr, David G., 2011. "Services Liberalization in Preferential Trade Arrangements: The Case of Kenya," Conference papers 332152, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Zeynep K. Hansen & Gary D. Libecap & Scott E. Lowe, 2011. "Climate Variability and Water Infrastructure: Historical Experience in the Western United States," NBER Chapters, in: The Economics of Climate Change: Adaptations Past and Present, pages 253-280, National Bureau of Economic Research, Inc.
    12. Severen, Christopher & Costello, Christopher & Deschênes, Olivier, 2018. "A Forward-Looking Ricardian Approach: Do land markets capitalize climate change forecasts?," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 235-254.
    13. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    14. 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.
    15. Zhou, Li & Turvey, Calum G., 2014. "Climate change, adaptation and China's grain production," China Economic Review, Elsevier, vol. 28(C), pages 72-89.
    16. 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.
    17. Xiangzheng Deng & Zhan Wang & Chunhong Zhao, 2016. "Economic Evolution In China Ecologically Fragile Regions," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 552-576, July.
    18. Isaure Delaporte & Mathilde Maurel, 2018. "Adaptation to climate change in Bangladesh," Climate Policy, Taylor & Francis Journals, vol. 18(1), pages 49-62, January.
    19. Lungarska, Anna & Chakir, Raja, 2018. "Climate-induced Land Use Change in France: Impacts of Agricultural Adaptation and Climate Change Mitigation," Ecological Economics, Elsevier, vol. 147(C), pages 134-154.
    20. Kenta Tanaka & Shunsuke Managi & Katsunobu Kondo & Kiyotaka Masuda & Yasutaka Yamamoto, 2011. "Potential Climate Effect On Japanese Rice Productivity," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 2(03), pages 237-255.

    More about this item

    Keywords

    Agribusiness; Agricultural and Food Policy; Environmental Economics and Policy; Farm Management; Land Economics/Use; Research Methods/ Statistical Methods;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ags:iaae12:126223. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.