Environmental and Resource Economics pp 1–36
Authors: Van Passel, S., Massetti, E. & Mendelsohn, R. Environ Resource Econ (2016). doi:10.1007/s10640-016-0001-y
This research estimates the impact of climate on European agriculture using a continental scale Ricardian analysis. Climate, soil, geography and regional socio-economic variables are matched with farm level data from 41,030 farms across Western Europe.
We demonstrate that a median quantile regression outperforms OLS given farm level data. The results suggest that European farms are slightly more sensitive to warming than American farms with impacts from + 5 to − 32 % by 2100 depending on the climate scenario.
Farms in Southern Europe are predicted to be particularly sensitive, suffering losses of − 5 to − 9 % per degree Celsius.