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The impact of global warming on agriculture: a Ricardian analysis
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Journal Article
The impact of global warming on agriculture: a Ricardian analysis
1994
Overview
We measure the economic impact of climate on land prices. Using cross-sectional data on climate, farmland prices, and other economic and geophysical data for almost 3,000 counties in the United States, we find that higher temperatures in all seasons except autumn reduce average farm values, while more precipitation outside of autumn increases farm values. Applying the model to a global-warming scenario shows a significantly lower estimated impact of global warming on U.S. agriculture than the traditional production-function approach and, in one case, suggests that, even without CO2 fertilization, global warming may have economic benefits for agriculture.
