scholarly journals The Economic Impacts of Climate Change: Evidence from Agricultural Output and Random Fluctuations in Weather

2007 ◽  
Vol 97 (1) ◽  
pp. 354-385 ◽  
Author(s):  
Olivier Deschênes ◽  
Michael Greenstone
Keyword(s):  
Climate Change ◽  
Economic Impact ◽  
Agricultural Land ◽  
Economic Impacts ◽  
Impact Of Climate Change ◽  
Positive Effects ◽  
Temperature And Precipitation ◽  
Random Fluctuations ◽  
Hedonic Approach ◽  
Impacts Of Climate Change

This paper measures the economic impact of climate change on US agricultural land by estimating the effect of random year-to-year variation in temperature and precipitation on agricultural profits. The preferred estimates indicate that climate change will increase annual profits by $1.3 billion in 2002 dollars (2002$) or 4 percent. This estimate is robust to numerous specification checks and relatively precise, so large negative or positive effects are unlikely. We also find the hedonic approach—which is the standard in the previous literature—to be unreliable because it produces estimates that are extremely sensitive to seemingly minor choices about control variables, sample, and weighting. (JEL L25, Q12, Q51, Q54)

scholarly journals The Economic Impacts of Climate Change: Evidence from Agricultural Output and Random Fluctuations in Weather: Reply

2012 ◽  
Vol 102 (7) ◽  
pp. 3761-3773 ◽  
Author(s):  
Olivier Deschênes ◽  
Michael Greenstone
Keyword(s):  
Climate Change ◽  
Agricultural Sector ◽  
Economic Impacts ◽  
Agricultural Output ◽  
Impact Of Climate Change ◽  
Data Errors ◽  
The Us ◽  
Random Fluctuations ◽  
The Impact ◽  
Impacts Of Climate Change

Fisher et al. (2012)––henceforth, FHRS––have uncovered coding and data errors in our paper, Deschênes and Greenstone (2007), henceforth, DG. We acknowledge and are embarrassed by these mistakes. We are grateful to FHRS for uncovering them. We hope that this Reply will also contribute to advancing the literature on the vital question of the impact of climate change on the US agricultural sector.

scholarly journals The Impact of Climate Change On Financing Cost of Heavy-Pollution Firms in China

2021 ◽  
Author(s):  
Kai Chang ◽  
Yixia Nie
Keyword(s):  
Climate Change ◽  
Firm Size ◽  
Impact Of Climate Change ◽  
Positive Effects ◽  
Financing Cost ◽  
Temperature And Precipitation ◽  
Financing Costs ◽  
Heavy Pollution ◽  
Precipitation Changes ◽  
The Impact

Abstract We examines the effects of climate change on the financing cost of heavy-pollution firms using firm-level panel data analysis. The empirical results demonstrate that the annual temperature and precipitation changes can significantly promote the financing costs of heavy-pollution firms, the positive impacts of annual temperature and precipitation changes on the financing costs of large, medium and small heavy-pollution firms has shown a gradual weakening trend with an increase of firm size, and the positive effects of annual temperature and precipitation changes on the financing costs of younger and older heavy-pollution firms has shown a decline trend with an increase of firm age. The evidences confirms that the impact of climate change on the financing costs of heavy-pollution firms exhibit a significant firm size and age discrimination of financing behaviors. Government decision-makers have to identify and optimize the transmission effect of climate change response on financing behavior decisions of heavy-pollution industries, financial institutions alleviate financial conflicts and credit discrimination behaviors and optimize the efficiency of financial resource allocation. Firms’ executives correct climate change strategy, optimize the climate- relevant operation, investment and financing activities, and alleviate unfavorable influences of climate changes for heavy-pollution firms.

scholarly journals Measuring the Economic Impact of Climate Change on Crop Production in the Dry Zone of Myanmar: A Ricardian Approach

Climate ◽  
2020 ◽  
Vol 8 (1) ◽  
pp. 9
Author(s):  
Aung Tun Oo ◽  
Guido Van Huylenbroeck ◽  
Stijn Speelman
Keyword(s):  
Climate Change ◽  
Economic Impact ◽  
Crop Production ◽  
Cross Sectional Survey ◽  
Adaptation Measures ◽  
Impact Of Climate Change ◽  
Global Circulation Models ◽  
Dry Zone ◽  
Negative Impacts ◽  
Impacts Of Climate Change

Myanmar is the country with the highest economic vulnerability (EV) to climate change in the Southeast Asian region. The dry zone of Myanmar occupies two-thirds of the agricultural lands and it has higher temperatures than elsewhere in the country. Climate change has severe impacts on agricultural production in this region. Moreover, changes in the precipitation patterns increase the likelihood of crop failures in the short-run and production declines in the long run. Therefore, an assessment of the economic impacts of climate change on crop production in the dry zone of Myanmar is very relevant. This paper examines the interactions between agriculture and climate and assesses the economic impact of climate change while using a Ricardian model. A cross-sectional survey covering three regions in the central dry zone: (Magwe, Mandalay, and Sagaing regions) was conducted, yielding a sample of 425 farmers. A non-linear relationship between climate indicators (temperature and precipitation) and revenue of land was found. The marginal effects were calculated by selecting economic and socio-demographic variables. The estimated marginal impacts suggest that the projected changes in temperature will affect the crop productivity of the region. The results also show that the temperature and rainfall components of global warming are both important. Predictions from three global circulation models all confirm that temperature is predicted to increase in all seasons. A significant marginal impact of increasing temperature on the net revenue of farm households was observed in the region. These findings call for policy makers and development planners to articulate the necessary climate change adaptation measures and mitigation options for reducing the negative impacts of climate change. Improved management and conservation of the available water resources could generate water for irrigation purposes and the dissemination of climate smart agricultural practices could lessen the negative impacts of climate change effects on agriculture in the dry zone of Myanmar.

scholarly journals Direct and indirect impacts of climate change on wheat yield in the Indo-Gangetic plain in India

2020 ◽  
Author(s):  
Anne Sophie Daloz ◽  
Johanne Rydsaa ◽  
Øivind Hodnebrog ◽  
Jana Sillmann ◽  
Bob van Oort ◽  
...  
Keyword(s):  
Climate Change ◽  
Wheat Yield ◽  
Maximum Temperature ◽  
Gangetic Plain ◽  
Impact Of Climate Change ◽  
Temperature And Precipitation ◽  
Direct And Indirect Impacts ◽  
Indirect Impacts ◽  
Indo Gangetic Plain ◽  
Impacts Of Climate Change

<p>The Sustainable Development Goals (SDGs) were adopted by all United Nations members states in 2015. “Erase hunger” and “Establish good health and well-being” are part of these goals and have major implications for agriculture and raises the question of how agriculture will be impacted by climate change. This work focuses on the potential impacts of the changing climate for agriculture, using the example of wheat yield in the Indo-Gangetic Plain (IGP) in India. First, the potential future changes in temperature and precipitation are examined over the IGP in regional climate simulations. The results show an increase in mean temperature and precipitation as well as maximum temperature during the growing season or Rabi season (November-April). Then, the direct (via temperature and precipitation) and indirect (via limiting irrigation) impacts of climate change on wheat yield are derived with a crop model for four selected sites in different states of the IGP (Punjab, Haryana, Uttar Pradesh and Bihar). The chosen sites are spread across the region to represent its major wheat growing areas.</p><p>The direct impact of climate change leads to wheat yield losses between -1% and -8% depending on the site examined and the irrigation regime chosen (6, 5, 3 or 1 irrigations). In this experiment, the number of irrigations remain the same in present and future climate. Then, when including the indirect impact of climate change the losses become much higher, reaching -4% to -36% depending on the site examined and by how much the irrigation is limited. This work shows the sensitivity of wheat yield to direct and indirect impacts of climate change in the IGP. It also emphasizes the complexity of climatic risk and the necessity of integrating more indirect impacts of climate change to fully assess how it affects agriculture.</p>

Tipping Points in the Climate System and the Economics of Climate Change

2020 ◽  
Author(s):  
James Rising ◽  
Simon Dietz ◽  
Thomas Stoerk ◽  
Gernot Wagner
Keyword(s):  
Climate Change ◽  
Economic Impact ◽  
Social Cost ◽  
Economic Impacts ◽  
Tipping Point ◽  
Assessment Model ◽  
Tipping Points ◽  
Social Cost Of Carbon ◽  
The Social ◽  
Impacts Of Climate Change

<div>Tipping points in the climate system are a key determinant of future impacts from climate change. Current consensus estimates for the economic impact of greenhouse gas emissions, however, do not yet incorporate tipping points. The last decade has, at the same time, seen publication of over 50 individual research papers on how tipping points affect the economic impacts of climate change. These papers have typically incorporated an individual tipping point into an integrated climate-economy assessment model (IAM) such as DICE to study how the the tipping point affects economic impacts of climate change such as the social cost of carbon (SC-CO2). This literature, has, however, not yet been synthesized to study the joint effect of the large number of tipping points on the SC-CO2. SC-CO2 estimates currently used in climate policy are therefore too low, and they fail to reflect the latest research.</div><div><br><div>This paper brings together this large and active literature and proposes a way to jointly estimate the impact of tipping points. In doing so, we bridge an important gap between climate science and climate economics. To do so, we develop a new integrated assessment model with frontier characteristics: a tractable geophysical module for each tipping point, damage functions based on recent climate econometric advances, and disaggregated climate change impacts at the national level, including from sea-level rise. In this model, we consider the following tipping points: the permafrost carbon feedback, the dissociation of ocean methane hydrates, Amazon forest dieback, the disintegration of the Greenland ice sheet, the disintegration of the West Antarctic ice sheet, the slowdown of the Atlantic Meridional Overturning Circulation, changed patterns of the India summer monsoon, and changes in surface albedo feedback (also referred to as Arctic sea-ice loss).</div> <div> </div> Our preliminary findings show that the geophysical tipping points tend to increase the economic impact of climate change, with a combined effect of increasing the social cost of carbon (SC-CO2) by 14%-43%. The largest contributions to this increase come from methane-related tipping points.</div>

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