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The economic impact of climate change on food security in Malaysia

Author

Listed:
  • Chuen Khee, Pek
  • Yet Mee, Lim
  • Chee Keong, Choong

Abstract

This study estimates the economic impact of climate change on food security in Malaysia. The contingent valuation technique is employed on 456 randomly selected households in the vicinities of Selangor Darul Ehsan. The study finds that climate change mitigation programmes to ensure food security are important. The public is willing to pay extra rice price in substitution of a rice subsidy reduction impact for the mitigation programmes. More specifically, the study ascertains that households on average are willing to pay 25% more for rice in replace of the subsidy reduction impact. This value conveys a total economic value of MYR557 million per annum, based on the total annual rice consumption of Malaysians who are willing to pay for the rice subsidy reduction impact. This substantial value may help give directions to the policy makers to draft more responsible food security and climate change mitigation bills in the future.

Suggested Citation

  • Chuen Khee, Pek & Yet Mee, Lim & Chee Keong, Choong, 2011. "The economic impact of climate change on food security in Malaysia," MPRA Paper 37199, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37199
    as

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    References listed on IDEAS

    as
    1. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
    2. Kim, Hong Jin & Cho, Yongsung, 2002. "Estimating Willingness To Pay For Reduced Copper Contamination In Southwestern Minnesota," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(2), pages 1-14, December.
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    4. John List & Craig Gallet, 2001. "What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(3), pages 241-254, November.
    5. Yoo, Seung-Hoon & Kwak, So-Yoon, 2009. "Willingness to pay for green electricity in Korea: A contingent valuation study," Energy Policy, Elsevier, vol. 37(12), pages 5408-5416, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    willingness-to-pay; climate change; food security; contingent valuation;
    All these keywords.

    JEL classification:

    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries

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