Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70006
Authors: 
Lang, Günter
Year of Publication: 
2003
Series/Report no.: 
Volkswirtschaftliche Diskussionsreihe, Institut für Volkswirtschaftslehre der Universität Augsburg 233
Abstract: 
Using an exhaustive panel dataset of the German agricultural sector, this paper is evaluating the relationship between climate conditions and land prices. The main advantage of this so-called hedonic approach is the consideration of the full range of adaptation options to the climatic environment. A Box-Cox form is employed to allow for very flexible relationships between land prices, warmth, moisture, and different socioeconomic variables. In a second step, the estimated results are used to forecast the impact of global climate change on the farming sector. The results show that a change of the temperature level has stronger impacts than a change of rainfall. Using a greenhouse warming scenario, German farmers are expected to be winners of climate change at least in the short run. Maximum gains are estimated with a temperature increase of +1.0°C against the current levels. Should the temperature increase surpass 1.8°C, however, the impact on the farming sector is clearly negative.
Subjects: 
agriculture
farming land
hedonic approach
climate change
environmental valuation
global warming
impact study
JEL: 
Q12
Q25
Document Type: 
Working Paper

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