Climate and Weather Impacts on Agriculture: The Case of Brazil

Denisard Alves () and Paula Pereda ()

No 2019_23, Working Papers, Department of Economics from University of São Paulo (FEA-USP)

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).

Keywords: translog profit function; climate change; climate and weather impacts; profit frontier; agricultural economics. (search for similar items in EconPapers)
JEL-codes: D21 Q11 Q12 Q54 Q56 (search for similar items in EconPapers)
Date: 2019-07-29
New Economics Papers: this item is included in nep-agr, nep-dev and nep-env
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