IMPACTS OF INCREASED CLIMATE VARIABILITY ON THE PROFITABILITY OF MIDWEST AGRICULTURE

Approximate profit functions are estimated using time-series, cross-sectional, county level data for 12 midwest states. Measures of climate variability are included in the profit functions. Simulated impacts of climate changes on profits are derived. Results show that inclusion of measures of climate variation are important for measuring the impact of changes in mean temperature and precipitation levels. Failure to account for the impact of differences in variability leads to an overestimate of damages. If global warming increases diurnal variation, such increases would have negative impacts on the profitability of midwest agriculture.


Subject(s):
Issue Date:
1999-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/15160
Published in:
Journal of Agricultural and Applied Economics, Volume 31, Number 3
Page range:
537-549
Total Pages:
13




 Record created 2017-04-01, last modified 2017-08-23

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