Economics, Center for Agricultural and Rural Development
2016 Agricultural & Applied Economics Association Annual Meeting
July 31-August 2, 2016
Boston, MA, United States
This paper provides the first estimates of the effects of climate change on agriculture while explicitly modeling tile drainage. We show in a simple conceptual model that the value of precipitation should differ between drained and non-drained land, implying that pooling these lands could bias estimates of the effects of climate change on land values. We test this hypothesis by estimating a Structural Ricardian model for U.S. counties east of the 100th meridian. Consistent with our theoretical model, our estimates show that the value of precipitation is higher on non-drained lands.
Q10, Q15, Q51, Q54
Copyright 2016 by Meyer and Keiser. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided this copyright notice appears on all such copies.
Meyer and Keiser
Meyer, Kevin and Keiser, David A., "Adapting to Climate Change Through Tile Drainage: A Structural Ricardian Analysis" (2016). Economics Presentations, Posters and Proceedings. 38.