Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 531

Full Length Research Paper

Climate change, irrigation and agricultural activities in Mexico: A Ricardian analysis with panel data

Luis Miguel Galindo
  • Luis Miguel Galindo
  • Economic Commission for Latin America and the Caribbean, Chile.
  • Google Scholar
Orlando Reyes*
  • Orlando Reyes*
  • Economic Commission for Latin America and the Caribbean, Chile.
  • Google Scholar
José Eduardo Alatorre
  • José Eduardo Alatorre
  • Economic Commission for Latin America and the Caribbean, Chile.
  • Google Scholar


  •  Received: 24 March 2015
  •  Accepted: 23 April 2015
  •  Published: 31 July 2015

Abstract

This article analyzes the potential impacts of climate change on agriculture in Mexico using a Ricardian model with panel data. The analysis uses economic data from 2,431 municipalities for the period 2003 to 2009. The study distinguishes between irrigated, rainfed and mixed farms and includes extreme weather events as an additional variable. The results indicate that irrigated farms are more vulnerable to temperature variations, while rainfed farms are more vulnerable to precipitation changes and extreme weather events. The projected impact in net revenue per hectare, considering a temperature rise of 2.5°C and a 10% reduction in precipitation, are between -18.6 and -36.4% of net revenue considering all type of farms. This climate scenario predicts average losses of net revenue ranging from, 26 to 55%; 14 to 25% and 27 to 37% for irrigated, rainfed and mixed municipalities, respectively.

 

Key words: Climate change, agriculture, Latin America, Ricardian model, panel data.