The behavioral dimension of CO2 fertilization effect: Evidence from US harvesting records

Ziheng Liu

Agricultural Economics, 2025, vol. 56, issue 1, 5-26

Abstract: The CO2 fertilization effect has been demonstrated to boost crop production by enhancing photosynthesis and reducing drought stress. In addition to this biological channel, there is also a behavioral margin for the CO2 fertilization effect that was previously unnoticed. I find evidence that an additional ppm of average CO2 concentration leads to increases in the corn and soybean harvested ratios of .57 and .75 percentage points, respectively. My predictions suggest that, without considering the adjustment in harvesting decision, the crop production benefits from CO2 fertilization effect would be biasedly estimated for both corn and soybeans, which broadens the understanding of farmers’ behavioral responses to environmental stimuli and extends the knowledge on how CO2 would benefit crop production.

Date: 2025
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