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A Ricardian analysis of Mexican farms

Published online by Cambridge University Press:  08 December 2009

ROBERT MENDELSOHN ,
JESUS ARELLANO-GONZALEZ  and
PETER CHRISTENSEN
ROBERT MENDELSOHN
Affiliation:
School of Forestry and Environmental Studies, Yale University, 195 Prospect Street, New Haven, CT 06511, USA. Phone:1–203-432–5128, Email: [email protected]
JESUS ARELLANO-GONZALEZ
Affiliation:
Program of Studies on Economic Change and Sustainability of the Agricultural Sector in Mexico (PRECESAM), Center of Economic Studies, El Colegio de México A.C. Camino al Ajusco 20, Pedregal de Santa Teresa, México, D.F. 10740 Email: [email protected]
PETER CHRISTENSEN
Affiliation:
School of Forestry and Environmental Studies, Yale University, 195 Prospect Street, New Haven, CT 06511, USA. Email: [email protected]
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Abstract

This paper measures the impact of climate on Mexican agriculture using a Ricardian analysis. The analysis relies on economic data from 621 individual farms that were collected in 2002. Data on climate, elevation, soils, and distance to nearest city were matched with each farm. The analysis reveals that farmland values in Mexico are sensitive to climate. On average, warmer temperatures reduce land value by 4,000 to 6,000 pesos per degree Celsius. Examining three climate scenarios for 2100, the models predict average losses of between −42% to −54% of land value in Mexico. As a percent of income, rainfed farms will suffer slightly larger damages than irrigated farms but comparisons between small and large farms are mixed.

Type
Research Article
Information
Environment and Development Economics , Volume 15 , Issue 2 , April 2010 , pp. 153 - 171
Copyright
Copyright © Cambridge University Press 2009

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