Estimating the impact of climate change on agricultural production: Accounting for technology heterogeneity across countries

Andreas Exenberger, Andreas Pondorfer and Maik Wolters

No 1920, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: We estimate the impact of climate change on agricultural production in a panel of 127 countries from 1961 to 2002. In contrast to the existing literature we account for cross-sectional dependence and technology heterogeneity. We find no significant impact of climate change on agricultural production in high income countries, but significant adverse effects in middle and low income countries. These adverse effects include a moderate negative impact of increases in temperature on agricultural output and for low income countries also negative effects of reductions in precipitation and of increases in the frequency of droughts. The latter two effects are particularly strong in Sub-Sahara Africa where low-tech rain-fed agriculture with very limited climate change adjustment capacities dominates. Thus, our findings reinforce the importance of proper adaptation strategies to climate change considering heterogeneous production technologies across countries.

Keywords: agricultural production; climate change; panel data; cross-sectional dependence; parameter heterogeneity; common correlated effects estimator (search for similar items in EconPapers)
JEL-codes: C33 N50 O13 Q54 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/96492/1/784967660.pdf (application/pdf)

Related works:
Working Paper: Estimating the impact of climate change on agricultural production: accounting for technology heterogeneity across countries (2014)
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:zbw:ifwkwp:1920

Access Statistics for this paper

More papers in Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().