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Abstract
This study uses the Ricardian valuation technique to estimate the effect of climate change on the crop farming sector in Pakistan. As a main contribution this paper uses a large household level dataset comprising 3336 farming entities to analyze long-term climate impacts on farm net crop revenues. In particular temperature increases in key growing seasons can be harmful. Annual losses for crop farming ranging from 100-200US$ can be expected. Given an average crop net income of 450US$ per hectare, these impacts can be devastating for farmers. The climate impacts will vary across geographic regions. Temperature is found to be the detrimental factor for farming in Pakistan. Precipitation changes seem to have a rather negligible effect.