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Structural Ricardian Analysis Of South-East Asian Agriculture

Author

Listed:
  • BABATUNDE O. ABIDOYE

    (Yale School of Forestry and Environmental Studies, 195 Prospect Street, New Haven, Connecticut 06511, USA)

  • PRADEEP KURUKULASURIYA

    (United Nations Development Program, New York, NY 10017, USA)

  • BRIAN REED

    (Yale School of Forestry and Environmental Studies, 195 Prospect Street, New Haven, Connecticut 06511, USA)

  • ROBERT MENDELSOHN

    (Yale School of Forestry and Environmental Studies, 195 Prospect Street, New Haven, Connecticut 06511, USA)

Abstract
This paper examines the impact of climate change on the net revenue (NR) of farmers from Bangladesh, Indonesia, Sri Lanka, Thailand and Vietnam. Two Ricardian models are estimated: (1) a traditional Ricardian model of the impact of climate change on annual farm NR and (2) a structural Ricardian model that first estimates the number of growing seasons and then the net revenue per season. The traditional model reveals annual NR is sensitive to autumn and summer climate variables. The seasonal effects offset each other so that uniform marginal effects are insignificant. Future climate scenarios likely harm Sri Lanka but could either benefit or harm Indonesia depending on the climate scenario. The structural Ricardian model suggests climate change will reduce the net revenue of three-season farms and increase the revenue of one-season farms causing farmers to switch from three-season farming to one-season farming. Expected losses by 2100 for the region range from −10% to −18%. Impacts in Indonesia may be higher ranging from −20% to −28%.

Suggested Citation

  • Babatunde O. Abidoye & Pradeep Kurukulasuriya & Brian Reed & Robert Mendelsohn, 2017. "Structural Ricardian Analysis Of South-East Asian Agriculture," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 8(03), pages 1-17, August.
    • Handle: RePEc:wsi:ccexxx:v:08:y:2017:i:03:n:s201000781740005x
    DOI: 10.1142/S201000781740005X
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    References listed on IDEAS

    as
    1. Pradeep Kurukulasuriya & Namrata Kala & Robert Mendelsohn, 2011. "Adaptation And Climate Change Impacts: A Structural Ricardian Model Of Irrigation And Farm Income In Africa," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 149-174.
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    Cited by:

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    2. Hossain, Mohammad Shakhawat & Arshad, Muhammad & Qian, Lu & Zhao, Minjuan & Mehmood, Yasir & Kächele, Harald, 2019. "Economic impact of climate change on crop farming in Bangladesh: An application of Ricardian method," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    3. Brian Reed & Robert Mendelsohn & Babatunde O. Abidoye, 2017. "The Economics Of Crop Adaptation To Climate Change In South-East Asia," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 8(03), pages 1-20, August.
    4. Asif Sardar & Adiqa K. Kiani & Yasemin Kuslu, 2021. "Does adoption of climate-smart agriculture (CSA) practices improve farmers’ crop income? Assessing the determinants and its impacts in Punjab province, Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(7), pages 10119-10140, July.
    5. Philip Kofi Adom, 2024. "The Socioeconomic Impact of Climate Change in Developing Countries in the Next Decades," Working Papers 681, Center for Global Development.
    6. Moretti, Michele & Vanschoenwinkel, Janka & Van Passel, Steven, 2021. "Accounting for externalities in cross-sectional economic models of climate change impacts," Ecological Economics, Elsevier, vol. 185(C).

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