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Climate Change and Agriculture: Subsistence Farmers' Response to Extreme Heat

Author

Listed:
  • Fernando M. Arag'on

    (Department of Economics, Simon Fraser University)

  • Francisco Oteiza

    (Department of Social Science, UCL Institute of Education)

  • Juan Pablo Rud

    (Department of Economics, Royal Holloway, University of London and Institute of Fiscal Studies)

Abstract

This paper examines how subsistence farmers respond to extreme heat. Using micro-data from Peruvian households, we find that high temperatures reduce agricultural productivity, increase area planted, and change crop mix. These findings are consistent with farmers using input adjustments as a short-term mechanism to attenuate the effect of extreme heat on output. This response seems to complement other coping strategies, such as selling livestock, but exacerbates the drop in yields, a standard measure of agricultural productivity. Using our estimates, we show that accounting for land adjustments is important to quantify damages associated with climate change.

Suggested Citation

  • Fernando M. Arag'on & Francisco Oteiza & Juan Pablo Rud, 2019. "Climate Change and Agriculture: Subsistence Farmers' Response to Extreme Heat," Papers 1902.09204, arXiv.org, revised Feb 2019.
  • Handle: RePEc:arx:papers:1902.09204
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    File URL: http://arxiv.org/pdf/1902.09204
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    References listed on IDEAS

    as
    1. Zhang, Peng & Deschenes, Olivier & Meng, Kyle & Zhang, Junjie, 2018. "Temperature effects on productivity and factor reallocation: Evidence from a half million chinese manufacturing plants," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 1-17.
    2. Bandara, Amarakoon & Dehejia, Rajeev & Lavie-Rouse, Shaheen, 2015. "The Impact of Income and Non-Income Shocks on Child Labor: Evidence from a Panel Survey of Tanzania," World Development, Elsevier, vol. 67(C), pages 218-237.
    3. Restuccia, Diego & Yang, Dennis Tao & Zhu, Xiaodong, 2008. "Agriculture and aggregate productivity: A quantitative cross-country analysis," Journal of Monetary Economics, Elsevier, vol. 55(2), pages 234-250, March.
    4. Jonathan Colmer, 2018. "Weather, Labor Reallocation and Industrial Production: Evidence from India," CEP Discussion Papers dp1544, Centre for Economic Performance, LSE.
    5. Shuaizhang Feng & Michael Oppenheimer & Wolfram Schlenker, 2012. "Climate Change, Crop Yields, and Internal Migration in the United States," NBER Working Papers 17734, National Bureau of Economic Research, Inc.
    6. Olivier DeschĂȘnes & 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.
    7. Arnaud Costinot & Dave Donaldson & Cory Smith, 2016. "Evolving Comparative Advantage and the Impact of Climate Change in Agricultural Markets: Evidence from 1.7 Million Fields around the World," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 205-248.
    8. repec:wly:econjl:v:128:y:2018:i:608:p:230-261 is not listed on IDEAS
    9. Auffhammer, Maximilian & Schlenker, Wolfram, 2014. "Empirical studies on agricultural impacts and adaptation," Energy Economics, Elsevier, vol. 46(C), pages 555-561.
    10. repec:eee:jeeman:v:83:y:2017:i:c:p:8-31 is not listed on IDEAS
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    Cited by:

    1. Fernando M. Aragon Sanchez & Diego Restuccia & Juan Pablo Rud, 2019. "Are Small Farms Really more Productive than Large Farms?," NBER Working Papers 26331, National Bureau of Economic Research, Inc.

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