The Impact of Climate Change on Agriculture in the Southwestern United States: The Ricardian Approach Revisited |
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| Authors: | Sandy Dall'erba Francina Domínguez |
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| Institution: | 1. Sandy Dall'erba, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, 435 Mumford Hall, Urbana, IL, 61801, USA;2. Francina Domínguez, Department of Atmospheric Sciences, University of Illinois at Urbana-Champaign, 101 Atmospheric Sciences Building, Urbana, IL 61801, USA. Email: francina@illinois.edu |
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| Abstract: | This paper estimates a Ricardian model of farmland value across the counties of the semiarid Southwestern United States. Compared to previous contributions, we focus on one climate zone and include the presence of extreme weather events and of farm subsidies in our analysis. We also control for heterogeneity and for various types of spillover effects. Once calibrated, the model is used to project changes due to future climate conditions. We find that the probability of a decrease is great in highland counties while an increase or decrease is equally probable in lowland counties where climate impacts farmland value less. |
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| Keywords: | Farmland climate change spillovers spatial econometrics |
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