Quantifying Economic Impact of Climate Change on Rice in Semiarid Tropics of India: using Ricardian Approach for the State of Andhra Pradesh

Singh, N P and Byjesh, K. and Ranganathan, C R and Bantilan, M C S (2013) Quantifying Economic Impact of Climate Change on Rice in Semiarid Tropics of India: using Ricardian Approach for the State of Andhra Pradesh. Asia Pacific Journal on Environment and Development, 20. pp. 41-55.

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Abstract

This paper analyzes the economic impact of climate change on agriculture for the state of Andhra Pradesh, India. The objective of this study is to quantify the impact of climate change on net revenue from rice crop in the 20 districts of the state. The Ricardian approach has been used to analyze the effects of climate variables on the net income from Rice. Panel datasets on climatic, agronomic and socio-economic variables were used for this analysis. The results showed that there exists significant nonlinear impact of temperature and rainfall on yield over the years on the net income from rice. On an average in rice; 10C rise in temperature will reduce the net income by109 INR (2.42US$) per hectare in these districts and the impact of precipitation are not substantial. Among districts taken into account, Anantpur face the maximum brunt of the impact of climate change. As expected, rainfall had positive marginal impacts, however it is very negligible. The socio-economic variable i.e. amount of irrigated area, literacy rate of rural population also shows significant positive effects on the income.

Item Type: Article
Divisions: RP-Market Institutions and Policies
CRP: CGIAR Research Program on Policies, Institutions, and Markets
Subjects: Others > Agriculture-Farming, Production, Technology, Economics
Depositing User: Mr Sanat Kumar Behera
Date Deposited: 20 Feb 2014 09:16
Last Modified: 20 Feb 2014 09:16
URI: http://oar.icrisat.org/id/eprint/7544
Official URL:
Projects: UNSPECIFIED
Funders: UNSPECIFIED
Acknowledgement: UNSPECIFIED
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