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Climate Change and Crop Yield Distribution: Some New Evidence From Panel Data Models

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Abstract

This study examines the impact of climate on the yields of seven major crops in Taiwan based on pooled panel data for 15 prefectures over the 1977-1996 period. Unit-root tests and maximum likelihood methods involving a panel data model are explored to obtain reliable estimates. The results suggest that climate has different impacts on different crops and a gradual increase in crop yield variation is expected as global warming prevails. Policy measures to counteract yield variability should therefore be carefully evaluated to protect farmers from exposure to these long-lasting and increasingly climate-related risks.

Suggested Citation

  • Chi-Chung Chen & Ching-Cheng Chang, 2004. "Climate Change and Crop Yield Distribution: Some New Evidence From Panel Data Models," IEAS Working Paper : academic research 04-A001, Institute of Economics, Academia Sinica, Taipei, Taiwan.
  • Handle: RePEc:sin:wpaper:04-a001
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    File URL: http://www.econ.sinica.edu.tw/upload/file/04-a001.200809021058407.pdf
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    Keywords

    Yield response; Climate change; Panel data; Unit-root test;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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