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The effect of development on the climate sensitivity of agriculture

Published online by Cambridge University Press:  15 January 2001

ROBERT MENDELSOHN ,
ARIEL DINAR  and
APURVA SANGHI
ROBERT MENDELSOHN
Affiliation:
Yale School of Forestry and Environmental Studies, 360 Prospect Street, New Haven, CT 06511, USA
ARIEL DINAR
Affiliation:
World Bank, 1818 H Street, Washington, DC, 20433 USA
APURVA SANGHI
Affiliation:
NERA, 1255 23rd Street, Washington, DC, 20037 USA
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Abstract

This paper examines whether a country's stage of development affects its climate sensitivity. The paper begins with a model of agriculture that shows that the effect of development on climate sensitivity is ambiguous, depending on the substitution between capital and climate. To resolve this issue, the climate sensitivity of agriculture in the United States, Brazil, and India is measured using a Ricardian approach. Relying on both intertemporal as well as cross-country comparisons, the empirical analysis suggests that increasing development reduces climate sensitivity.

Type
Policy Options
Information
Environment and Development Economics , Volume 6 , Issue 1 , February 2001 , pp. 85 - 101
Copyright
© 2001 Cambridge University Press

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