FEEM working papers "Note di lavoro" series
2017 .043

Do Temperature Thresholds Threaten American Farmland?


Authors: Emanuele Massetti, Robert Mendelsohn
Series: Climate Change: Economic Impacts and Adaptation
Editor: Francesco Bosello
Keywords: Agriculture, Climate Change, Weather, Crop Yields, Ricardian, Threshold
JEL n.: Q1, Q5

Abstract

Estimated Ricardian models have been criticized because they rely on mean temperatures and do not explicitly include extreme temperatures. This paper uses a cross sectional approach to compare a standard quadratic Ricardian model of mean temperature with a fully flexible daily temperature bin model of farmland values in the Eastern United States. The flexible bin model leads to smaller damages from warming than the quadratic mean specification, but the difference is not statistically significant. Although weather panel studies find high temperature events lead to large annual damage, high temperature events have no harmful effect on farmland values. The results are robust to alternative model specifications and data sets.

***

Suggested citation: Massetti, E., R. Mendelsohn, (2017), 'Do Temperature Thresholds Threaten American Farmland?', Nota di Lavoro 43.2017, Milano, Italy: Fondazione Eni Enrico Mattei



Download file
Download PDF file

FEEM Update

Subscribe to stay connected.

Your personal data will be processed by Fondazione Eni Enrico Mattei. – data Controller – with the aim of emailing the FEEM newsletter. The use of Your email address is necessary for the implementation of the newsletter service. You are invited to read the Privacy Policy in order to obtain additional information about the protection of Your rights.

This Website uses technical cookies and cookie analytics, as well as “third party” profiling cookies.
If you close this banner or you decide to continue navigating on this Website, you express consent to the use of cookies. If you need additional information or you wish to express selective choices on the use of cookies, please refer to the   Cookie PolicyI agree