A Ricardian Analysis of the Impact of Climate Change on European Agriculture
Steven Van Passel, Emanuele Massetti, Robert Mendelsohn
Q54, Q51, Q15
Ricardian Analysis, Climate Change, European Agriculture, Climate Change Economics, Quantile Regression
Climate Change and Sustainable Development
This research estimates the impact of climate on European agriculture using a continental scale Ricardian analysis. Climate, soil, geography and regional socio-economic variables are matched with farm level data from 37,612 farms across Western Europe. We demonstrate that a median quantile regression outperforms OLS given farm level data. The results suggest that European farms are slightly more sensitive to warming than American farms with losses from -8% to -44% by 2100 depending on the climate scenario. Farms in Southern Europe are predicted to be particularly sensitive, suffering losses of -9% to -13% per degree Celsius.