ADAPTATION AND CLIMATE CHANGE IMPACTS: A STRUCTURAL RICARDIAN MODEL OF IRRIGATION AND FARM INCOME IN AFRICA

Author:

KURUKULASURIYA PRADEEP1,KALA NAMRATA2,MENDELSOHN ROBERT2

Affiliation:

1. Energy and Environment Group, Bureau of Development Policy, United Nations Development Programme (UNDP), Bangkok, Thailand

2. School of Forestry and Environmental Studies, Yale University, 195 Prospect St, New Haven, CT 06511, USA

Abstract

Although there is now an extensive literature on the economic impacts of climate change on agriculture, no study has yet addressed the endogeneity of irrigation. This paper examines how climate affects the choice to irrigate and the conditional income earned by each farmer. The paper develops a selection model of irrigation choice and conditional income. Using data from farmers across eleven African countries, the paper demonstrates that the choice of irrigation is sensitive to both temperature and precipitation. Rainfed and irrigated farm income also both respond to climate but have different climate sensitivity. Impact models that fail to account for endogenous irrigation are biased.

Publisher

World Scientific Pub Co Pte Lt

Subject

Management, Monitoring, Policy and Law,Economics and Econometrics,Global and Planetary Change

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