Weather shocks, adaptation and agricultural TFP: A cross-region comparison of Australian Broadacre farms

Yu Sheng, Shiji Zhao and Sansi Yang ()

Energy Economics, 2021, vol. 101, issue C

Abstract: This paper investigates the dynamic impact of weather shocks on agricultural total factor productivity (TFP) of Australian broadacre industry, by applying a Panel Error Correction model (PECM) to the data of 32 agricultural regions over the period 1978–2013. In response to weather shocks, farmers take adaptive actions by adjusting their output and input structures to alleviate weather-induced loss in productivity. Moreover, farmers in regions with the least favorable climate condition are found to adapt to weather shocks more rapidly than those in regions with more favorable climate condition. Our finding highlights the importance of public policies to encourage farmers to improve adaptive capacities in the events of weather shock.

Keywords: Agricultural TFP; Cross-region comparison; Weather shocks; Adaptive capacity (search for similar items in EconPapers)
JEL-codes: D24 Q18 Q54 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:101:y:2021:i:c:s0140988321003133

DOI: 10.1016/j.eneco.2021.105417

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