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

Author

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  • 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
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    File URL: http://purl.umn.edu/126223
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    References listed on IDEAS

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    1. Robert Mendelsohn & Ariel Dinar, 2009. "Climate Change and Agriculture," Books, Edward Elgar Publishing, number 12990.
    2. 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.
    3. 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.
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    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. 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.
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    More about this item

    Keywords

    Climate Change; Agriculture; Adaptation; Irrigation; Agribusiness; Agricultural and Food Policy; Environmental Economics and Policy; Farm Management; Land Economics/Use; Research Methods/ Statistical Methods; Q12; Q54;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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