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Ariel Ortiz-Bobea
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Agriculture is arguably the most climate-sensitive sector of the economy. Growing concerns about anthropogenic climate change have increased research interest in assessing its potential impact on the sector and in identifying policies and adaptation strategies to help the sector cope with a changing climate. This chapter provides an overview of recent advancements in the analysis of climate change impacts and adaptation in agriculture with an emphasis on methods. The chapter provides an overview of recent research efforts addressing key conceptual and empirical challenges. The chapter also discusses practical matters about conducting research in this area and provides reproducible R code to perform common tasks of data preparation and model estimation in this literature. The chapter provides a hands-on introduction to new researchers in this area.
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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.
This paper quantifies the significance and magnitude of the effect of measurement error in satellite weather data in the analysis of smallholder agricultural productivity. The cross-country analysis leverages multiple rounds of georeferenced, nationally-representative, panel household survey data that have been collected over the last decade. These data are spatially-linked with a range of geospatial weather data sources and related metrics. The goal is to provide systematic evidence on obfuscation methods, satellite data source, and weather metrics in order to determine which of these elements have strong predictive power over a large set of crops and countries and which are only useful in highly specific settings.
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Bakhtmina Zia
, Dr Muhammad Rafiq PhD Research Scholar
, Institute ofn Management Sciences
2020
The paper is a collection of knowledge regarding the phenomenon of climate change, competitiveness, and literature linking the two phenomena to agricultural market competitiveness. The objective is to investigate the peer reviewed and grey literature on the subject to explore the link between climate change and agricultural market competitiveness and also explore an appropriate technique to validate the presumed relationship empirically. The paper concludes by identifying implications for developing an agricultural competitiveness index while incorporating the climate change impacts, to enhance the potential of agricultural markets for optimizing the agricultural sectors competitiveness.
How does food consumption improve educational outcomes is an important policy issue for developing countries. Applying the Indonesian Family Life Survey (IFLS) 2014, we estimate the returns of food consumption to education and investigate if more educated individuals tend to consume healthier bundles than less-educated individuals do. We implement the Expected Outcome Methodology, which is similar to Average Treatment on The Treated (ATT) conceptualized by Angrist and Pischke (2009). We find that education tends to tilt consumption towards healthier foods. Specifically, individuals with upper secondary or higher levels of education, on average, consume 31.5% more healthy foods than those with lower secondary education or lower levels of education. With respect to unhealthy food consumption, more highly-educated individuals, on average, consume 22.8% less unhealthy food than less-educated individuals. This suggests that education can increase the inequality in the consumption of healthy food bundles. Our study suggests that it is important to design policies to expand education for all for at least up to higher secondary level in the context of Indonesia. Our finding also speaks to the link between food-health gradient and human capital formation for a developing country such as Indonesia.
Economists have predicted that damages from global warming will be as low as 2.1% of global economic production for a 3$^circ$C rise in global average surface temperature, and 7.9% for a 6$^circ$C rise. Such relatively trivial estimates of economic damages -- when these economists otherwise assume that human economic productivity will be an order of magnitude higher than today -- contrast strongly with predictions made by scientists of significantly reduced human habitability from climate change. Nonetheless, the coupled economic and climate models used to make such predictions have been influential in the international climate change debate and policy prescriptions. Here we review the empirical work done by economists and show that it severely underestimates damages from climate change by committing several methodological errors, including neglecting tipping points, and assuming that economic sectors not exposed to the weather are insulated from climate change. Most fundamentally, the influential Integrated Assessment Model DICE is shown to be incapable of generating an economic collapse, regardless of the level of damages. Given these flaws, economists empirical estimates of economic damages from global warming should be rejected as unscientific, and models that have been calibrated to them, such as DICE, should not be used to evaluate economic risks from climate change, or in the development of policy to attenuate damages.
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