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Climate and Weather Impacts on Agriculture: The Case of Brazil

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  • Denisard Alves
  • Paula Pereda

Abstract

The world’s population will rise exponentially in the coming decades, increasing the demand for food and challenging the agricultural sector to ensure food security. Due to the importance of climate conditions for agriculture, this article analyzed two different hypotheses regarding climate impacts on agricultural markets in Brazil. First, farmers only observe the average climate conditions of their region when deciding the type and amount of crop or animal to grow or raise. Second, weather diversions from normal climate conditions cause farmers to deviate from optimal profits. Neither hypothesis was rejected by the data. The 2006 estimated loss from rainfall anomalies was 12.8 billion dollars (in 2014 values).

Suggested Citation

  • Denisard Alves & Paula Pereda, 2019. "Climate and Weather Impacts on Agriculture: The Case of Brazil," Working Papers, Department of Economics 2019_23, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2019wpecon23
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    File URL: http://www.repec.eae.fea.usp.br/documentos/Denisard_Pereda_23WP.pdf
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    More about this item

    Keywords

    translog profit function; climate change; climate and weather impacts; profit frontier; agricultural economics.;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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