EFFECTS OF CHANGES IN CLIMATIC CONDITIONS ON NEW MEXICO PECAN PRODUCTION, PRICE, AND CASH RECEIPTS

Jee W. Hwang and Okmyung Bin
Additional contact information
Jee W. Hwang: College of Business Administration, Northern New Mexico College, 921 N. Paseo de Oñate, Española, NM 87532, USA
Okmyung Bin: Department of Economics, Thomas Harriot College of Arts and Sciences, East Carolina University, E 5th Street, Greenville, NC 27858, USA

Climate Change Economics (CCE), 2019, vol. 10, issue 02, 1-11

Abstract: This study estimates the effects of changes in climatic conditions on local pecan production, price, and cash receipts in New Mexico, USA, for the period from 1964 to 2014. Our primary measures for estimating the effects are drought indices: the Palmer Drought Severity Index, and the Standardized Precipitation Index. Our results indicate that precipitation is important to pecan yields. Consistent with previous studies, we find the effects of moisture deficits to be more pronounced compared to conditions of high moisture levels. The gains from moderate to extreme wet conditions on cash receipts are estimated to be as high as +16% while the losses from moderate to severe droughts are as high as −30%. Applying these estimates to cash receipts during the years when an actual wet spell and a drought that took place in New Mexico, the values of these effects are +$12.6 million and −$59.7 million, respectively.

Keywords: Climate change; drought index; pecan production; precipitation index (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S2010007819500064
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ccexxx:v:10:y:2019:i:02:n:s2010007819500064

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2010007819500064

Access Statistics for this article

Climate Change Economics (CCE) is currently edited by Robert Mendelsohn

More articles in Climate Change Economics (CCE) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().