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Is Western European Agriculture Resilient to High Temperatures?

Author

Listed:
  • Emanuele Massetti
  • Steven Van Passel
  • Camila Apablaza

Abstract

We estimate a Ricardian model of Western European agricultural land values using farm-level data. We model the effect of temperature on land values using a flexible specification of daily mean temperature to test if there are temperature threshold effects. Results indicate that there are no temperature thresholds beyond which agricultural land values suddenly drop. The results are robust to alternative model specifications. Adaptation explains why a smooth aggregate response function is compatible with sharply non-linear crop yield functions. With adaptation, the effect of warming on Western European agriculture is likely to be smooth.

Suggested Citation

  • Emanuele Massetti & Steven Van Passel & Camila Apablaza, 2018. "Is Western European Agriculture Resilient to High Temperatures?," CESifo Working Paper Series 7286, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_7286
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp7286.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    agriculture; climate change; extreme temperature; Ricardian; threshold; Europe;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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