The impact of climate change on agriculture: A repeat-Ricardian analysis

L'impact du changement climatique sur l'agriculture: Une analyse ricardienne répétée

Francois Bareille and Raja Chakir

Post-Print from HAL

Abstract: Ricardian analyses of farmland values have become a cornerstone of the literature valuing the impacts of climate change on agriculture. However, concerns about the lack of a formal econometric strategy to deal with omitted farmland characteristics have raised doubts about the identification of such impacts. This paper proposes an original method for estimating Ricardian models with plot fixed effects to control for confounding omitted variables. Specifically, we use plot-level repeat-sales French data from 1996 to 2019 to investigate how differences in farmland prices between two sale dates are explained by differences in climate conditions. We show that our repeat-Ricardian estimates suggest greater benefits of climate change than those found with standard Ricardian analyses. In particular, our repeat-Ricardian estimates indicate that warmer summers benefit French agriculture, in complete opposition to our pooled Ricardian estimates or to the remainder of the literature. Our repeat-Ricardian results are robust to several specifications, climate length-definitions and sub-samples. We provide elements suggesting that the repeat-Ricardian analysis is better able to capture crop-switching towards high-value crops requiring particular soil conditions (e.g. vineyards). Our repeat-Ricardian analysis also indicates greater benefits of climate change compared to those estimated with short-term weather-based approaches, shedding new lights on previous inconsistent findings from the literature.

Keywords: Repeat; sales (search for similar items in EconPapers)
Date: 2023-05
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Published in Journal of Environmental Economics and Management, inPress, pp.102822. ⟨10.1016/j.jeem.2023.102822⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: The impact of climate change on agriculture: A repeat-Ricardian analysis (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04092408

DOI: 10.1016/j.jeem.2023.102822

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().