Climate Change and Agriculture: Subsistence Farmers' Response to Extreme Heat
- (pp. 1-35)
Abstract
This paper examines how subsistence farmers respond to extreme heat. Using microdata from Peruvian households, we find that high temperatures reduce agricultural productivity, increase area planted, and change crop mix. These findings are consistent with farmers using input adjustments as a short-term mechanism to attenuate the effect of extreme heat on output. This response seems to complement other coping strategies, such as selling livestock, but exacerbates the drop in yields, a standard measure of agricultural productivity. Using our estimates, we show that accounting for land adjustments is important to quantify damages associated with climate change.Citation
Aragón, Fernando M., Francisco Oteiza, and Juan Pablo Rud. 2021. "Climate Change and Agriculture: Subsistence Farmers' Response to Extreme Heat." American Economic Journal: Economic Policy, 13 (1): 1-35. DOI: 10.1257/pol.20190316Additional Materials
JEL Classification
- O12 Microeconomic Analyses of Economic Development
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- Q11 Agriculture: Aggregate Supply and Demand Analysis; Prices
- Q12 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q15 Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q54 Climate; Natural Disasters and Their Management; Global Warming
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