Climate change and agriculture: farmer adaptation to extreme heat

Fernando M. Aragón, Francisco Oteiza () and Juan Pablo Rud ()
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Fernando M. Aragón: Institute for Fiscal Studies
Francisco Oteiza: Institute for Fiscal Studies and EDePo @ Institute for Fiscal Studies
Juan Pablo Rud: Institute for Fiscal Studies and Royal Holloway, University of London

No W18/06, IFS Working Papers from Institute for Fiscal Studies

Abstract: This paper examines how farmers adapt, in the short-run, to extreme heat. Using a production function approach and micro-data from Peruvian households, we find that high temperatures induce farmers to increase the use of inputs, such as land and domestic labor. This reaction partially attenuates the negative effects of high temperatures on output. We interpret this change in inputs as an adaptive response in a context of subsistence farming, incomplete markets, and lack of other coping mechanisms. We use our estimates to simulate alternative climate change scenarios and show that accounting for adaptive responses is quantitatively important.

JEL-codes: O12 O13 Q12 Q15 Q51 Q54 (search for similar items in EconPapers)
Date: 2018-02-23
New Economics Papers: this item is included in nep-agr, nep-dev, nep-env and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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