Producer Responses to Surface Water Availability and Implications for Climate Change Adaptation
Dale Manning,
Christopher Goemans and
Alexander Maas ()
No 205784, 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California from Agricultural and Applied Economics Association
Abstract:
Climate change is predicted to bring changes in weather and water availability. The effect on agriculture depends on the ability of producers to modify their practices in response to changing distributions. We develop a two-stage theoretical model of producer planting and irrigation decisions and use a unique dataset to empirically estimate how irrigated agricultural producers respond to changes in expected water availability and deviations from expectations. As water supplies decrease, producers respond by planting fewer acres and concentrating the application of water. Highlighting the importance of adaptation, failure to account for this behavioral response overstates climate change impacts by 29%.
Keywords: Crop Production/Industries; Land Economics/Use; Production Economics; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 40
Date: 2015
New Economics Papers: this item is included in nep-agr and nep-env
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Citations: View citations in EconPapers (3)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea15:205784
DOI: 10.22004/ag.econ.205784
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