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Climate Change and Adaptive Strategies in Brazil:
the economic effects of genetic breeding
1
Marcel Viana Pires
2
and Dênis Antônio da Cunha
3
Abstract:
Plant breeding through the development of seeds resistant to water
stress or high temperature is an important adaptive strategy to cope climate
change. In this way, by providing an analysis of adaptation to climate change
using genetic breeding on Brazilian farms, this work aims to investigate how
climate change will affect the adoption of genetic breeding and profitability of
farmers. Temperature and rainfall projections for 2010-2099 time periods were
used, considering different climate scenarios (A1B and A2), according to the
4
th
Assessment Report of IPCC (2007). A Treatment Effects model outlines the
analytical framework in this study. Our results indicate the probability of adopting
transgenic seeds will grow from 74% in the current period to 86% in 2020, 83%
in 2050, and 81% in 2080. Farmers adopting this adaptation strategy will have
higher profits. Land value tends to be higher in both climate scenarios in counties
with cultivated areas using transgenic seeds. Farmers adopting this adaptation
measure will be less exposed to adverse effects of climate change. We conclude
that it is necessary to invest in adaptation strategies so that Brazil can overcome
adverse effects of global climate change.