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Climate Sensitivity Of Indian Agriculture

  • K.S. Kavi Kumar

    (MSE)

Climate change impact studies on agriculture are broadly based on agronomic-economic approach and Ricardian approach. The Ricardian approach, similar in principle to the Hedonic pricing approach of environmental valuation, has received significant attention due to its elegance and also some strong assumptions it makes. This paper attempts to extend the existing knowledge in this field by specifically addressing two important issues : (a) extent of change in climate sensitivity of Indian agriculture over time; (b) importance of accounting for spatial features in the assessment of climate sensitivity. The analysis based on four decades of data suggests that the climate sensitivity of Indian agriculture is increasing over time, particularly in the period from mid-eighties to late nineties. This finding corroborates the growing evidence of weakening agricultural productivity over the similar period in India. The results also show presence of significant positive spatial autocorrelation, necessitating estimation of climate sensitivity while controlling for the same. While many explanations may exist for the presence of spatial autocorrelation, this paper argued that inter-farmer communication could be one of the primary reasons for the spatial dependence. Field studies carried out in Andhra Pradesh and Tamil Nadu through focus group discussions provided limited evidence in this direction.

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Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 22939.

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Date of creation: Jan 2009
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Handle: RePEc:eab:develo:22939
Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
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  1. Wolfram Schlenker & Michael J. Roberts, 2008. "Estimating the Impact of Climate Change on Crop Yields: The Importance of Nonlinear Temperature Effects," NBER Working Papers 13799, National Bureau of Economic Research, Inc.
  2. William R. Cline, 2007. "Global Warming and Agriculture: Impact Estimates by Country," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4037, May.
  3. John K. Horowitz & John Quiggin, 1999. "The Impact of Global Warming on Agriculture: A Ricardian Analysis: Comment," American Economic Review, American Economic Association, vol. 89(4), pages 1044-1045, September.
  4. Roy Darwin, 1999. "The Impact of Global Warming on Agriculture: A Ricardian Analysis: Comment," American Economic Review, American Economic Association, vol. 89(4), pages 1049-1052, September.
  5. Jinxia Wang & Robert Mendelsohn & Ariel Dinar & Jikun Huang & Scott Rozelle & Lijuan Zhang, 2009. "The impact of climate change on China's agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 323-337, 05.
  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.
  7. World Bank, 2008. "Climate Change Impacts in Drought and Flood Affected Areas : Case Studies in India," World Bank Other Operational Studies 8075, The World Bank.
  8. 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 753-71, September.
  9. repec:reg:rpubli:291 is not listed on IDEAS
  10. Olivier Desch�nes & 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.
  11. Mendelsohn, Robert & Dinar, Ariel & Sanghi, Apurva, 2001. "The effect of development on the climate sensitivity of agriculture," Environment and Development Economics, Cambridge University Press, vol. 6(01), pages 85-101, February.
  12. Dinar, A. & Mendelsohn, R. & Evenson, R. & Parikh, J. & Sanghi, A. & Kumar, K. & McKinsey, J. & Lonergen, S., 1998. "Measuring the Impact of CLimate Change on Indian Agriculture," Papers 402, World Bank - Technical Papers.
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