Climate sensitivity of Indian agriculture : do spatial effects matter?
Date
2009
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SANDEE, Kathmandu, NP
Abstract
Using panel data over a twenty-year period from 271 districts, the paper estimates the impact of climate change on farm level net revenue. Climate change results in a 9% decline in agricultural revenues in the base model. However by incorporating spatial effects, such as how well farmers share their climate mitigation strategies, this decline in revenues can be reduced to 3%. Evidence suggests that better dissemination of knowledge among farmers through both market forces and local leadership will help popularize effective adaptation strategies to address climate change impacts. Policy implications are discussed.
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Keywords
ADAPTATION, ENVIRONMENTAL VALUATION, MATHEMATICAL MODEL, CLIMATE CHANGE IMPACTS, ADAPTIVE CAPACITY, INDIA, ENVIRONMENTAL ECONOMICS, AGRICULTURAL PRODUCTIVITY, SOUTH ASIA, SPATIAL ANALYSIS