A Structural Land-Use Analysis of Agricultural Adaptation to Climate Change: A Proactive Approach

Jonathan Kaminski, Iddo Kan () and Aliza Fleischer ()

No 120076, Discussion Papers from Hebrew University of Jerusalem, Department of Agricultural Economics and Management

Abstract: This article proposes a proactive approach for analyzing agricultural adaptation to climate change based on a structural land-use model wherein farmers maximize profit by allocating their land between crop-technology bundles. The profitability of the bundles is a function of four technological attributes via which climate variables‟ effect is channeled: yield potential; input requirements; yields' sensitivity to input use; and farm-level management costs. Proactive adaptation measures are derived by identifying the technological attributes via which climate variables reduce overall agricultural profitability, despite adaptation by land reallocation among bundles. By applying the model to Israel, we find that long-term losses stem from yield potential reductions driven by forecasted increases in temperature, implying that adaptation efforts should target more heat-tolerant crop varieties and technologies.

Keywords: Land; Economics/Use (search for similar items in EconPapers)
Pages: 46
Date: 2011
New Economics Papers: this item is included in nep-agr and nep-env
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Journal Article: A Structural Land-Use Analysis of Agricultural Adaptation to Climate Change: A Proactive Approach (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:huaedp:120076

DOI: 10.22004/ag.econ.120076

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