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A Ricardian analysis of Mexican farms

Published online by Cambridge University Press:  08 December 2009

ROBERT MENDELSOHN
Affiliation:
School of Forestry and Environmental Studies, Yale University, 195 Prospect Street, New Haven, CT 06511, USA. Phone:1–203-432–5128, Email: robert.mendelsohn@yale.edu
JESUS ARELLANO-GONZALEZ
Affiliation:
Program of Studies on Economic Change and Sustainability of the Agricultural Sector in Mexico (PRECESAM), Center of Economic Studies, El Colegio de México A.C. Camino al Ajusco 20, Pedregal de Santa Teresa, México, D.F. 10740 Email: jagonzalez@colmex.mx
PETER CHRISTENSEN
Affiliation:
School of Forestry and Environmental Studies, Yale University, 195 Prospect Street, New Haven, CT 06511, USA. Email: peter.christensen@yale.edu

Abstract

This paper measures the impact of climate on Mexican agriculture using a Ricardian analysis. The analysis relies on economic data from 621 individual farms that were collected in 2002. Data on climate, elevation, soils, and distance to nearest city were matched with each farm. The analysis reveals that farmland values in Mexico are sensitive to climate. On average, warmer temperatures reduce land value by 4,000 to 6,000 pesos per degree Celsius. Examining three climate scenarios for 2100, the models predict average losses of between −42% to −54% of land value in Mexico. As a percent of income, rainfed farms will suffer slightly larger damages than irrigated farms but comparisons between small and large farms are mixed.

Type
Research Article
Copyright
Copyright © Cambridge University Press 2009

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