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.
Aragón, Fernando M., Francisco Oteiza, and Juan Pablo Rud.
"Climate Change and Agriculture: Subsistence Farmers' Response to Extreme Heat."
American Economic Journal: Economic Policy,
Microeconomic Analyses of Economic Development
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Agriculture: Aggregate Supply and Demand Analysis; Prices
Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
Climate; Natural Disasters and Their Management; Global Warming