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Impacts of Increased Climate Variability on the Profitability of Midwest Agriculture

Published online by Cambridge University Press:  28 April 2015

Bruce L. Dixon  and
Kathleen Segerson
Bruce L. Dixon
Affiliation:
University of Arkansa, Fayetteville
Kathleen Segerson
Affiliation:
University of Connecticut, Storrs
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Abstract

Approximate profit functions are estimated using time-series, cross-sectional, county level data for 12 midwest states. Measures of climate variability are included in the profit functions. Simulated impacts of climate changes on profits are derived. Results show that inclusion of measures of climate variation are important for measuring the impact of changes in mean temperature and precipitation levels. Failure to account for the impact of differences in variability leads to an overestimate of damages. If global warming increases diurnal variation, such increases would have negative impacts on the profitability of midwest agriculture.

Keywords

climate changeclimate variabilitymidwestprofit function
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 31 , Issue 3 , December 1999 , pp. 537 - 549
Copyright
Copyright © Southern Agricultural Economics Association 1999

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