ADAPTATION AND CLIMATE CHANGE IMPACTS: A STRUCTURAL RICARDIAN MODEL OF IRRIGATION AND FARM INCOME IN AFRICA

Pradeep Kurukulasuriya (), Namrata Kala and Robert Mendelsohn
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Pradeep Kurukulasuriya: Energy and Environment Group, Bureau of Development Policy, United Nations Development Programme (UNDP), Bangkok, Thailand
Namrata Kala: School of Forestry and Environmental Studies, Yale University, 195 Prospect St, New Haven, CT 06511, USA

Climate Change Economics (CCE), 2011, vol. 02, issue 02, 149-174

Abstract: Although there is now an extensive literature on the economic impacts of climate change on agriculture, no study has yet addressed the endogeneity of irrigation. This paper examines how climate affects the choice to irrigate and the conditional income earned by each farmer. The paper develops a selection model of irrigation choice and conditional income. Using data from farmers across eleven African countries, the paper demonstrates that the choice of irrigation is sensitive to both temperature and precipitation. Rainfed and irrigated farm income also both respond to climate but have different climate sensitivity. Impact models that fail to account for endogenous irrigation are biased.

Keywords: Microanalysis of farm firms; farm households; farm input markets; irrigation; agriculture and environment; climate global warming; Q12; Q15; Q54 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (54)

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Persistent link: https://EconPapers.repec.org/RePEc:wsi:ccexxx:v:02:y:2011:i:02:n:s2010007811000255

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DOI: 10.1142/S2010007811000255

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