 The Economic Effects of Droughts: Focused on Rice ProductionJaehoon Sung Journal of Rural Development/Nongchon-Gyeongje, 2018, vol. 41, issue 3 Abstract: We analyzed the effects of drought on rice production and its economic effects. The results show that rice yields decrease by 3.0% (0.7%) when the number of days of “very severe” (“severe”) drought increases by one. However, we also found that the effects of drought decreased continuously from 2011 to 2015. Specifically, even though the drought in 2015 was more severe than the drought in 2011, the marginal effect of drought on rice yield in 2011 (-0.08%) was larger than that in 2015 (-0.02%). This result reflects the effects of the enhancement of agricultural technologies and the adaptive capacity to drought. An analysis of a regional input-output table shows that the economic losses due to “severe” or “very severe” drought were about 27.6 billion KRW in 2011, 1.1 billion KRW in 2012 and 2014, and 13.2 billion KRW in 2015. Also, we found that the negative economic effects of drought would spread over nearby provinces due to economic linkages among provinces. For example, when crop production in Incheon decreases by 1% due to drought, the total production of Seoul and Gyeonggi province decreases by 0.08% and 0.06% respectively. Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:jordng:330744 Access Statistics for this article More articles in Journal of Rural Development/Nongchon-Gyeongje from Korea Rural Economic Institute Contact information at EDIRC. |
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