Climate, insurance and innovation: the case of drought and innovations in drought-tolerant traits in US agriculture

2020 ◽  
Vol 47 (5) ◽  
pp. 1826-1860 ◽  
Author(s):  
Ruiqing Miao
Keyword(s):  
Climate Change ◽  
Agricultural Sector ◽  
Crop Insurance ◽  
Crowding Out ◽  
Innovation Activities ◽  
Drought Tolerant ◽  
Long Run ◽  
The Us ◽  
Using Data ◽  
Agricultural Innovations

Abstract This paper investigates the effects of crop insurance on agricultural innovation (namely, drought-tolerant traits) in the context of climate change. A conceptual framework is developed to model the market equilibrium of agricultural innovations. Hypotheses derived are then tested by using data for US agriculture. We find that the US agricultural sector responds to climate variation by increasing innovation activities, but this response is weakened by subsidised crop insurance by about 23 per cent. This indicates that crop insurance may have an unintended crowding-out effect as an option of risk management and may inhibit societies’ long-run capacity to adapt to climate change.

PESTICIDE AND GREENHOUSE GAS EXTERNALITIES FROM US AGRICULTURE — THE IMPACT OF THEIR INTERNALIZATION AND CLIMATE CHANGE

2013 ◽  
Vol 04 (03) ◽  
pp. 1350008 ◽  
Author(s):  
NIKOLINKA SHAKHRAMANYAN ◽  
UWE A. SCHNEIDER ◽  
BRUCE A. McCARL
Keyword(s):  
Climate Change ◽  
Greenhouse Gas ◽  
Agricultural Sector ◽  
Greenhouse Gas Emission ◽  
Production Costs ◽  
Net Income ◽  
Gas Emission ◽  
Emission Mitigation ◽  
The Us ◽  
The Impact

Climate change may affect the use of pesticides and their associated environmental and human health impacts. This study employs and modifies a partial equilibrium model of the US agricultural sector to examine the effects of alternative regulations of the pesticide and greenhouse gas emission externality. Simulation results indicate that without pesticide externality regulations and low greenhouse gas emission mitigation strategy, climate change benefits from increased agricultural production in the US are more than offset by increased environmental costs. Although the combined regulation of pesticide and greenhouse gas emission externalities increases farmers' production costs, their net income effects are positive because of price adjustments and associated welfare shifts from consumers to producers. The results also show heterogeneous impacts on preferred pest management intensities across major crops. While pesticide externality regulations lead to substantial increases in total water use, climate policies induce the opposite effect.

scholarly journals Do Farmers Adapt to Climate Change? A Macro Perspective

Agriculture ◽  
2020 ◽  
Vol 10 (6) ◽  
pp. 212 ◽  
Author(s):  
Shahzad Alvi ◽  
Faisal Jamil ◽  
Roberto Roson ◽  
Martina Sartori
Keyword(s):  
Climate Change ◽  
Agricultural Sector ◽  
Central Africa ◽  
Developed Countries ◽  
Temperature And Precipitation ◽  
Weather And Climate ◽  
The World ◽  
Potential Damage ◽  
Using Data ◽  
Cereal Yields

Greenhouse gas emissions cause climate change, and agriculture is the most vulnerable sector. Farmers do have some capability to adapt to changing weather and climate, but this capability is contingent on many factors, including geographical and socioeconomic conditions. Assessing the actual adaptation potential in the agricultural sector is therefore an empirical issue, to which this paper contributes by presenting a study examining the impacts of climate change on cereal yields in 55 developing and developed countries, using data from 1991 to 2015. The results indicate that cereal yields are affected in all regions by changes in temperature and precipitation, with significant differences in certain macro-regions in the world. In Southern Asia and Central Africa, farmers fail to adapt to climate change. The findings suggest that the world should focus more on enhancing adaptive capacity to moderate potential damage and on coping with the consequences of climate change.

scholarly journals Vocational Education, Per Capita Income, and Employment in the US

2017 ◽  
Vol 7 (2) ◽  
pp. 392
Author(s):  
Eric Im Posthumous ◽  
Tam Vu
Keyword(s):  
Vocational Education ◽  
Capita Income ◽  
College Graduates ◽  
University Education ◽  
Per Capita Income ◽  
Long Run ◽  
The Us ◽  
Short Run ◽  
Per Capita ◽  
Using Data

This paper examines the effects of vocational education on per capita income and employment in the U.S. A panel dataset on the number of graduates from community colleges as a proxy for vocational education for fifty states and Washington D.C. during 2002-2010 is used. The method of three stage least squares was employed. The results show that vocational education appears to affect changes in per capita income and employment positively. Nest, we compare and contrast vocational education with university education by using data on the number of four-year college graduates. The results show that the vocational education increases per capita income and employment more than university education in the short run but less than the latter in the long run.

Impacts of climate change on power sector NO x emissions: A long-run analysis of the US mid-atlantic region

Energy Policy ◽  
2015 ◽  
Vol 84 ◽  
pp. 11-21 ◽  
Author(s):  
Yihsu Chen ◽  
Benjamin F. Hobbs ◽  
J. Hugh Ellis ◽  
Christian Crowley ◽  
Frederick Joutz
Keyword(s):  
Climate Change ◽  
Power Sector ◽  
Atlantic Region ◽  
Long Run ◽  
The Us ◽  
Impacts Of Climate Change

scholarly journals Does Climate Change Asymmetrically Affect Rice Productivity In India? New Insight From NARDL Cointegration Approach

2021 ◽  
Author(s):  
Imran Ali Baig ◽  
Abbas Ali Chandio ◽  
Md. Abdus Salam
Keyword(s):  
Climate Change ◽  
Ardl Model ◽  
Rice Productivity ◽  
Distributed Lag ◽  
Dynamic Relationship ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
Asymmetrical Impact ◽  
Bound Test

Abstract This article attempt to answer the question "whether the dynamic relationship between climate change and rice productivity is symmetrical or asymmetrical" using data from 1990-2017 in India. First, we test the symmetrical and long-run dynamic relationship using the Autoregressive Distributed Lags (ARDL) model and test the asymmetrical and cointegration relationship based on Nonlinear Auto-Regressive Distributed Lag (NARDL) technique. The results of the ARDL model indicates that no symmetrical relationship between the variables in long-run. Whereas outcomes of the NARDL bound test reveal that there is long-run asymmetrical impact of climate change on rice productivity. The positive and negative shock of climate change has affected the rice productivity by different magnitude in India. The Wald statistics confirm asymmetric relationship between rice productivity and climate change in the long-run while only short-run asymmetrical relationships exist between rainfall and rice productivity in India.Furthermore, dynamic multipliers indicate that negative component of rainfall and temperature has a dominant effect over the positive component on rice productivity. To the best of the author's knowledge, no studies have been done to assess both symmetrical and asymmetrical dynamic relationships between climate change and rice productivity using ARDL and NARDL cointegration approaches in India's context. This study will help frame the environmental policies and strategy to cope with climate change in India's agriculture productivity.

Reciprocity and Social Norms: Short- and Long-Run Crowding Out Effects of Financial Incentives

2021 ◽  
Vol 16 (2) ◽  
pp. 177-213
Author(s):  
Jinhua Zhao ◽  
◽  
John M. Kerr ◽  
Maria Knight Lapinski ◽  
Robert Shupp ◽  
...  
Keyword(s):  
Social Behavior ◽  
Social Norms ◽  
Public Goods ◽  
Intrinsic Motivation ◽  
Strong Evidence ◽  
Financial Incentives ◽  
Crowding Out ◽  
Public Goods Game ◽  
Long Run ◽  
Using Data

We link the reciprocity model of Falk and Fischbacher (2006) with the theory of normative social behavior to study how financial incentives crowd out intrinsic motivation in both the short and long runs. Using data from a lab-based repeated public goods game, we find strong evidence in support of the reciprocity model and crowding out effects both when the payment is in place and after it stops. When the payment program is in place, subjects become less sensitive to reciprocity, perceive less kindness in others’ contributions, and care less about others’ welfare. The overall decrease in motivation to reciprocate reduces the effectiveness of the payment program by almost 50%. About 20% of the crowding out effect persists after the payment stops, and the reciprocity mechanism explains over three quarters of the long-run crowding out effect.

scholarly journals Climate Change, Mortality, and Adaptation: Evidence from Annual Fluctuations in Weather in the US

2011 ◽  
Vol 3 (4) ◽  
pp. 152-185 ◽  
Author(s):  
Olivier Deschênes ◽  
Michael Greenstone
Keyword(s):  
Climate Change ◽  
Energy Consumption ◽  
Mortality Rates ◽  
Residential Energy ◽  
Residential Energy Consumption ◽  
Long Run ◽  
The Us ◽  
Business As Usual ◽  
The Relationship ◽  
Annual Mortality

Using random year-to-year variation in temperature, we document the relationship between daily temperatures and annual mortality rates and daily temperatures and annual residential energy consumption. Both relationships exhibit nonlinearities, with significant increases at the extremes of the temperature distribution. The application of these results to “business as usual” climate predictions indicates that by the end of the century climate change will lead to increases of 3 percent in the age-adjusted mortality rate and 11 percent in annual residential energy consumption. These estimates likely overstate the long-run costs, because climate change will unfold gradually allowing individuals to engage in a wider set of adaptations. (JEL I12, Q41, Q54)

scholarly journals Assessing the effect of climate change and financial development on agricultural production in ASEAN-4: The role of renewable energy, institutional quality and human capital as moderators

2021 ◽  
Author(s):  
Abbas Ali Chandio ◽  
Muhammad Ibrahim Shah ◽  
Narayan Sethi ◽  
Zulqarnain Mushtaq
Keyword(s):  
Climate Change ◽  
Human Capital ◽  
Renewable Energy ◽  
Financial Development ◽  
Agricultural Production ◽  
Energy Use ◽  
Agricultural Sector ◽  
Institutional Quality ◽  
Distributed Lag ◽  
Long Run

Abstract This study utilizes the data of ASEAN-4 nations, namely Indonesia, Malaysia, Philippines, and Thailand, to examine how climate change, renewable energy, human capital, institutional quality as well as financial development affect the agricultural production. Since shocks in one country can easily affect another country of this region, the second generation modelling techniques are utilized to prove the relationship among the variables of interest. Findings from the Westerlund (2007) cointegration test confirms long run relationship among the variables. The result from Cross-sectionally augmented autoregressive distributed lag (CS-ARDL) model reveals that climate change negatively affects the agricultural production, renewable energy, human capital, institutional quality positively affects the agricultural production. Moreover, renewable energy use, human capital and intuitional quality moderates the effect of carbon emission on agricultural production. In addition, a U shaped relationship between financial development and agricultural production is discovered, suggesting that financial development can promote production in the agricultural sector only after reaching a certain threshold. Finally, some policy recommendations are provided for the ASEAN-4 countries.

scholarly journals The Economic Impacts of Climate Change: Evidence from Agricultural Output and Random Fluctuations in Weather: Reply

2012 ◽  
Vol 102 (7) ◽  
pp. 3761-3773 ◽  
Author(s):  
Olivier Deschênes ◽  
Michael Greenstone
Keyword(s):  
Climate Change ◽  
Agricultural Sector ◽  
Economic Impacts ◽  
Agricultural Output ◽  
Impact Of Climate Change ◽  
Data Errors ◽  
The Us ◽  
Random Fluctuations ◽  
The Impact ◽  
Impacts Of Climate Change

Fisher et al. (2012)––henceforth, FHRS––have uncovered coding and data errors in our paper, Deschênes and Greenstone (2007), henceforth, DG. We acknowledge and are embarrassed by these mistakes. We are grateful to FHRS for uncovering them. We hope that this Reply will also contribute to advancing the literature on the vital question of the impact of climate change on the US agricultural sector.

scholarly journals Achieving Food Security in a Climate Change Environment: Considerations for Environmental Kuznets Curve Use in the South African Agricultural Sector

Climate ◽  
2019 ◽  
Vol 7 (9) ◽  
pp. 108 ◽  
Author(s):  
Ngarava ◽  
Zhou ◽  
Ayuk ◽  
Tatsvarei
Keyword(s):  
Climate Change ◽  
South Africa ◽  
Energy Consumption ◽  
South African ◽  
Co2 Emissions ◽  
Agricultural Sector ◽  
Series Data ◽  
The South ◽  
Agricultural Income ◽  
Long Run

This study relates agricultural income and agricultural carbon dioxide (CO2) emissions in the context of environmental Kuznets curves for South Africa. We posit likely relationships between UN Sustainable Development Goals (SDG) 1, 2 and 13, relating food production to climate change action. CO2 emissions, income, coal energy consumption and electricity energy consumption time series data from 1990 to 2012 within the South African agricultural sector were used. The autoregressive distributive lag bounds-test and the error correction model were used to analyse the data. The results show long-run relationships. However, agricultural income was only significant in the linear and squared models. Changes in agricultural CO2 emissions from the short run towards the long run are estimated at 71.9%, 124.7% and 125.3% every year by the linear, squared and cubic models, respectively. Exponentially increasing agricultural income did not result in a decrease in agricultural CO2 emissions, which is at odds with the Kuznets hypothesis. The study concludes that it will be difficult for South Africa to simultaneously achieve SDGs 1, 2 and 13, especially given that agriculture is reliant upon livestock production, the largest CO2 emitter in the sector. The sector needs to shift to renewable energy consumption with fewer CO2 emissions.

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