Econometric approaches to estimate economic impacts of climate change on agricultura

Climate change affects crop development and yields, with possible negative impacts on food security and the economy. For this reason, the studies reported in the literature, which used econometric analyzes at the microeconomic level, were analyzed to estimate the economic impacts of climate change on agriculture. A greater use of the Ricardian model was found, compared to the production function model. Both use independent climatic, soil, and socioeconomic variables. The most frequent response variables were agricultural net income and land value, for the Ricardian model, as well as production and yield, for the production function model. The strengths and weaknesses of these models were discussed. Most of the studies reported that the increase in temperature and the decrease in precipitation have negative impacts on agriculture. This represents a great challenge for adaptation to climate change.