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Climate Change and Agriculture: Subsistence Farmers' Response to Extreme Heat

Fernando M. Arag\'on, Francisco Oteiza and Juan Pablo Rud
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Fernando M. Arag\'on: Department of Economics, Simon Fraser University
Francisco Oteiza: Department of Social Science, UCL Institute of Education
Juan Pablo Rud: Department of Economics, Royal Holloway, University of London and Institute of Fiscal Studies

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Abstract: This paper examines how subsistence farmers respond to extreme heat. Using micro-data from Peruvian households, we find that high temperatures reduce agricultural productivity, increase area planted, and change crop mix. These findings are consistent with farmers using input adjustments as a short-term mechanism to attenuate the effect of extreme heat on output. This response seems to complement other coping strategies, such as selling livestock, but exacerbates the drop in yields, a standard measure of agricultural productivity. Using our estimates, we show that accounting for land adjustments is important to quantify damages associated with climate change.

New Economics Papers: this item is included in nep-agr, nep-dev and nep-env
Date: 2019-02, Revised 2019-02
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