Hurricanes and Possible Intensity Increases: Effects on and Reactions from U.S. Agriculture

Chi-Chung Chen and Bruce McCarl

Journal of Agricultural and Applied Economics, 2009, vol. 41, issue 1, 125-144

Abstract: Hurricanes have caused substantial damage in parts of the U.S. Damages are increasing, perhaps as part of a natural cycle or perhaps in part related to global warming. This paper examines the economic damages that hurricanes cause to U.S. agriculture, estimates the increased damage from an increase in hurricane frequency/intensity, and examines the way that sectoral reactions reduce damages. The simulation results show that hurricanes and associated adjustments cause widespread damage and redistribute agricultural welfare. We find that crop mix shifts of vulnerable crops from stricken to nonstricken regions significantly mitigate hurricane damages.

Date: 2009
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