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A Ricardian Analysis of the Impact of Climate Change on European Agriculture

Author

Listed:
  • Steven Van Passel

    (Hasselt University, Faculty of Business Economics, Centre for Environmental Sciences, Agoralaan, Yale University, School of Forestry and Environmental Studies)

  • Emanuele Massetti

    (Yale University, School of Forestry and Environmental Studies, Fondazione Eni Enrico Mattei)

  • Robert Mendelsohn

    (Yale University, School of Forestry and Environmental Studies)

Abstract

This research estimates the impact of climate on European agriculture using a continental scale Ricardian analysis. Data on climate, soil, geography and regional socio-economic characteristics were matched for 37 612 individual farms across the EU-15. Farmland values across Europe are sensitive to climate. Even with the adaptation captured by the Ricardian technique, farms in Southern Europe are predicted to suffer sizeable losses (8% -13% per degree Celsius) from warming. In contrast, agriculture in the rest of Europe is likely to see only mixed impacts. Increases (decreases) in rain will increase (decrease) average farm values by 3% per centiliter of precipitation. Aggregate impacts by 2100 vary depending on the climate model scenario from a loss of 8% in a mild scenario to a loss of 44% in a harsh scenario.

Suggested Citation

  • Steven Van Passel & Emanuele Massetti & Robert Mendelsohn, 2012. "A Ricardian Analysis of the Impact of Climate Change on European Agriculture," Working Papers 2012.83, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2012.83
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    References listed on IDEAS

    as
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    1. repec:wsi:ccexxx:v:08:y:2017:i:03:n:s2010007817400024 is not listed on IDEAS
    2. Anubhab Pattanayak & and K. S. Kavi Kumar, "undated". "Does Weather Sensitivity of Rice Yield Vary Across Regions? Evidence from Eastern and Southern India," Working Papers 2017-162, Madras School of Economics,Chennai,India.
    3. Md. Ruhul Amin & Junbiao Zhang & Mingmei Yang, 2015. "Effects of Climate Change on the Yield and Cropping Area of Major Food Crops: A Case of Bangladesh," Sustainability, MDPI, Open Access Journal, vol. 7(1), pages 1-18, January.
    4. Mariya Aleksandrova & Animesh K. Gain & Carlo Giupponi, 2016. "Assessing agricultural systems vulnerability to climate change to inform adaptation planning: an application in Khorezm, Uzbekistan," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 21(8), pages 1263-1287, December.
    5. Raza, Amar & Ahmad, Munir, 2015. "Analysing the Impact of Climate Change on Cotton Productivity in Punjab and Sindh, Pakistan," MPRA Paper 72867, University Library of Munich, Germany.
    6. Arouna, Aminou & Kouton, Baudelaire & Diagne, Aliou, 2015. "Impact of climate change on rice income: case study of four West African Countries," 2015 Conference, August 9-14, 2015, Milan, Italy 210958, International Association of Agricultural Economists.

    More about this item

    Keywords

    Ricardian Analysis; Climate Change; European Agriculture; Climate Change Economics;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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