The Effect of Climate Change on Canadian Farmland Values: A Ricardian Approach

References

1. ↵
   AAFC (Agriculture and Agri-food Canada). 2013. “The National Soil Database.” Available at https://sis.agr.gc.ca/cansis/nsdb/index.html.
2. ↵
   AAFC (Agriculture and Agri-food Canada). 2021. “Overview of Canada’s Agriculture and Agri-Food Sector.” Available at https://agriculture.canada.ca/en/sector/overview.
3. ↵
   1. Abadie, A.

   , S. Athey, G. W. Imbens, and J. M. Wooldridge. 2022. “When Should You Adjust Standard Errors for Clustering?” Quarterly Journal of Economics 138 (1): 1–35. https://doi.org/10.1093/qje/qjac038.

   OpenUrl
4. ↵
   1. Adams, R. M.

   , B. A. McCarl, D. J. Dudek, and J. D. Glyer. 1988. “Implications of Global Climate Change for Western Agriculture.” Western Journal of Agricultural Economics 13 (2): 348–56.

   OpenUrl
5. ↵
   AdaptWest Project. 2022. “Gridded Current and Projected Climate Data for North America at 1km Resolution, Generated Using the ClimateNA v7.30 Software.” Available at adaptwest.databasin.org.
6. ↵
   1. Auffhammer, M.

   , S. M. Hsiang, W. Schlenker, and A. Sobel. 2013. “Using Weather Data and Climate Model Output in Economic Analyses of Climate Change.” Review of Environmental Economics and Policy 7 (2): 181–98. https://doi.org/10.1093/reep/ret016.
7. ↵
   1. Bareille, F.

   , and R. Chakir. 2023. “The Impact of Climate Change on Agriculture: A Repeat-Ricardian Analysis.” Journal of Environmental Economics and Management 119: 102822. https://doi.org/10.1016/j.jeem.2023.102822.

   OpenUrl
8. ↵
   1. Chicoine, D. L

   . 1981. “Farmland Values at the Urban Fringe: An Analysis of Sale Prices.” Land Economics 57 (3): 353–62. https://doi.org/10.2307/3146016.

   OpenUrlCrossRefWeb of Science
9. ↵
   1. Cline, W. R

   . 1992. The Economics of Global Warming. New York: Columbia University Press.
10. ↵
    1. Cline, W. R

    1996. “The Impact of Global Warming of Agriculture: Comment.” American Economic Review 86 (5): 1309–11.

    OpenUrlWeb of Science
11. ↵
    1. Conley, T. G

    . 1999. “GMM Estimation with Cross Sectional Dependence.” Journal of Econometrics 92 (1): 1–45. https://doi.org/10.1016/S0304-4076(98)00084-0.

    OpenUrlCrossRefWeb of Science
12. ↵
    1. Darwin, R

    . 1999. “The Impact of Global Warming on Agriculture: A Ricardian Analysis: Comment.” American Economic Review 89 (4): 1049–52. https://doi.org/10.1257/aer.89.4.1049.

    OpenUrlCrossRefWeb of Science
13. ↵
    1. De Salvo, M.

    , B. Diego, and S. Giovanni. 2014. “The Ricardian Analysis Twenty Years after the Original Model: Evolution, Unresolved Issues and Empirical Problems.” Journal of Development and Agricultural Economics 6 (3): 124–31. https://doi.org/10.5897/JDAE2013.0534.

    OpenUrl
14. ↵
    1. Deschênes, O.

    , and M. Greenstone. 2007. “The Economic Impacts of Climate Change: Evidence from Agricultural Output and Random Fluctuations in Weather.” American Economic Review 97 (1): 354–85. https://doi.org/10.1257/aer.97.1.354.

    OpenUrlCrossRefWeb of Science
15. ↵
    1. Deschênes, O.

    , and M. Greenstone. 2012. “The Economic Impacts of Climate Change: Evidence from Agricultural Output and Random Fluctuations in Weather: Reply.” American Economic Review 102 (7): 3761–73. https://doi.org/10.1257/aer.102.7.3761.

    OpenUrl
16. ↵
    1. Fezzi, C.

    , and I. Bateman. 2015. “The Impact of Climate Change on Agriculture: Nonlinear Effects and Aggregation Bias in Ricardian Models of Farmland Values.” Journal of the Association of Environmental and Resource Economists 2 (1): 57–92. https://doi.org/10.1086/680257.

    OpenUrl
17. ↵
    1. Fisher, A. C.

    , W. M. Hanemann, M. J. Roberts, and W. Schlenker. 2012. “The Economic Impacts of Climate Change: Evidence from Agricultural Output and Random Fluctuations in Weather: Comment.” American Economic Review 102 (7): 3749–60.

    OpenUrlCrossRef
18. ↵
    1. Freeman, A. M

    . 1993. The Measurement of Environmental and Resource Values: Theory and Methods. Washington, DC: Resources for the Future.
19. 1. Hannah, L.

    , P. R. Roehrdanz, K. C. Krishna Bahadur, E. D. G. Frazer, C. I. Donatti, L. Saenz, T. M. Wright, et al. 2020. “The Environmental Consequences of Climate-Driven Agricultural Frontiers.” PLOS One 15 (2): e0228305. https://doi.org/10.1371/journal.pone.0228305.
20. ↵
    1. Hatfield, J. L.

    , and J. H. Prueger. 2015. “Temperature Extremes: Effect on Plant Growth and Development.” Weather and Climate Extremes 10: 4–10. https://doi.org/10.1016/j.wace.2015.08.001.
21. ↵
    IPCC (Intergovernmental Panel on Climate Change). 2023. Climate Change 2022: Impacts, Adaptation and Vulnerability. Working Group II Contribution to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge, UK: Cambridge University Press. https://doi.org/10.1017/9781009325844.
22. ↵
    1. Kaufmann, R. K

    . 1998. “The Impact of Climate Change on US Agriculture: A Response to Mendelssohn et al. (1994).” Ecological Economics 26 (2): 113–19. https://doi.org/10.1016/S0921-8009(97)00058-X.

    OpenUrlCrossRefWeb of Science
23. ↵
    1. Mahony, C. R.

    , T. Wang, A. Hamann, and A. J. Cannon. 2022. “A Global Climate Model Ensemble for Downscaled Monthly Climate Normals over North America.” International Journal of Climatology 42 (11): 5871–91. https://doi.org/10.1002/joc.7566.

    OpenUrlCrossRef
24. ↵
    1. Massetti, E.

    , and R. Mendelsohn. 2011. “Estimating Ricardian Models with Panel Data.” Climate Change Economics 2 (4): 301–19.

    OpenUrl
25. ↵
    1. Massetti, E.

    , R. Mendelsohn, and S. Chonabayashi. 2016. “How Well Do Degree Days over the Growing Season Capture the Effect of Climate on Farmland Values?” Energy Economics 60: 144–50. https://doi.org/10.1016/j.eneco.2016.09.004.

    OpenUrl
26. ↵
    1. Mendelsohn, R.

    , W. D. Nordhaus, and D. Shaw. 1994. “The Impact of Global Warming on Agriculture: A Ricardian Analysis.” American Economic Review 84 (4): 753–71.

    OpenUrlWeb of Science
27. ↵
    1. Mendelsohn, R.

    , W. D. Nordhaus, and D. Shaw. 1996. “Climate Impacts on Aggregate Farm Value: Accounting for Adaptation.” Agricultural and Forest Meteorology 80 (1): 55–66. https://doi.org/10.1016/0168-1923(95)02316-X.

    OpenUrlCrossRef
28. ↵
    1. Mendelsohn, R.

    , and M. Reinsborough. 2007. “A Ricardian Analysis of US and Canadian Farmland.” Climatic Change 81 (1): 9–17. https://doi.org/10.1007/s10584-006-9138-y.

    OpenUrl
29. ↵
    1. Mérel, P.

    , and M. Gammans. 2021. “Climate Econometrics: Can the Panel Approach Account for Long‐Run Adaptation?” American Journal of Agricultural Economics 103 (4): 1207–38. https://doi.org/10.1111/ajae.12200.

    OpenUrl
30. ↵
    1. Mérel, P.

    , E. Paroissien, and M. Gammans. 2024. “Sufficient Statistics for Climate Change Counterfactuals.” Journal of Environmental Economics and Management 124: 102940. https://doi.org/10.1016/j.jeem.2024.102940.
31. ↵
    1. Newman, M. C

    . 1993. “Regression Analysis of Log‐Transformed Data: Statistical Bias and Its Correction.” Environmental Toxicology and Chemistry 12 (6): 1129–33. https://doi.org/10.1002/etc.5620120618.

    OpenUrlCrossRefWeb of Science
32. ↵
    1. Nickerson, C. J.

    , and L. Lynch. 2001. “The Effect of Farmland Preservation Programs on Farmland Prices.” American Journal of Agricultural Economics 83 (2): 341–51. https://doi.org/10.1111/0002-9092.00160.

    OpenUrlCrossRefWeb of Science
33. ↵
    1. Ortiz‐Bobea, A

    . 2020. “The Role of Nonfarm Influences in Ricardian Estimates of Climate Change Impacts on US Agriculture.” American Journal of Agricultural Economics 102 (3): 934–59. https://doi.org/10.1093/ajae/aaz047.

    OpenUrl
34. ↵
    1. Palmquist, R. B.

    , and L. E. Danielson. 1989. “A Hedonic Study of the Effects of Erosion Control and Drainage on Farmland Values.” American Journal of Agricultural Economics 71 (1): 55–62. https://doi.org/10.2307/1241774.

    OpenUrlCrossRefWeb of Science
35. ↵
    1. Reinsborough, M. J.

    2003. “A Ricardian Model of Climate Change in Canada.” Canadian Journal of Economics [Revue Canadienne d’Economique] 36 (1): 21–40.

    OpenUrl
36. ↵
    1. Riahi, K.

    , D. P. Van Vuuren, E. Kriegler, J. Edmonds, B. C. O’Neill, S. Fujimori, N. Bauer, et al. 2017. “The Shared Socioeconomic Pathways and Their Energy, Land Use, and Greenhouse Gas Emissions Implications: An Overview.” Global Environmental Change 42: 153–68. https://doi.org/10.1016/j.gloenvcha.2016.05.009.

    OpenUrlCrossRef
37. ↵
    1. Rosenzweig, C.

    , and M. L. Parry. 1994. “Potential Impact of Climate Change on World Food Supply.” Nature 367 (6459): 133–38. https://doi.org/10.1038/367133a0.

    OpenUrlCrossRefWeb of Science
38. ↵
    1. Sanghi, A.

    , and R. Mendelsohn. 2008. “The Impacts of Global Warming on Farmers in Brazil and India.” Global Environmental Change 18 (4): 655–65. https://doi.org/10.1016/j.gloenvcha.2008.06.008.

    OpenUrlWeb of Science
39. ↵
    1. Schlenker, W.

    , W. M. Hanemann, and A. C. Fisher. 2005. “Will U.S. Agriculture Really Benefit from Global Warming? Accounting for Irrigation in the Hedonic Approach.” American Economic Review 95 (1): 395–406.

    OpenUrlCrossRefWeb of Science
40. ↵
    1. Schlenker, W.

    , W. M. Hanemann, and A. C. Fisher. 2006. “The Impact of Global Warming on U.S. Agriculture: An Econometric Analysis of Optimal Growing Conditions.” Review of Economics and Statistics 88 (1): 113–25. https://doi.org/10.1162/rest.2006.88.1.113.

    OpenUrlCrossRefWeb of Science
41. ↵
    1. Schlenker, W.

    , W. M. Hanemann, and A. C. Fisher. 2007. “Water Availability, Degree Days, and the Potential Impact of Climate Change on Irrigated Agriculture in California.” Climatic Change 81 (1): 19–38. https://doi.org/10.1007/s10584-005-9008-z.

    OpenUrlCrossRefWeb of Science
42. ↵
    1. Severen, C.

    , C. Costello, and O. Deschênes. 2018. “A Forward-Looking Ricardian Approach: Do Land Markets Capitalize Climate Change Forecasts?” Journal of Environmental Economics and Management 89: 235–54. https://doi.org/10.1016/j.jeem.2018.03.009.

    OpenUrl
43. ↵
    Statistics Canada. 2019. “Census Profile: 2016 Census of Population.” Catalogue 98-316-X2016001. Available at https://www12.statcan.gc.ca/census-recensement/2016/dp-pd/prof/index.cfm?Lang=E.
44. ↵
    Statistics Canada. 2023a. “Census Profile: 2021 Census of Population.” Catalogue 98-316-X2021001. Available at https://www12.statcan.gc.ca/census-recensement/2021/dp-pd/prof/index.cfm?Lang=E.
45. ↵
    Statistics Canada. 2023b. “Value Per Acre of Farm Land and Buildings at July 1.” https://doi.org/10.25318/3210004701-ENG.
46. Statistics Canada. 2023c. “Consumer Price Index, Annual Average, Not Seasonally Adjusted.” Available at https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000501.
47. ↵
    1. Van Passel, S.

    , E. Massetti, and R. Mendelsohn. 2017. “A Ricardian Analysis of the Impact of Climate Change on European Agriculture.” Environmental and Resource Economics 67 (4): 725–60. https://doi.org/10.1007/s10640-016-0001-y.

    OpenUrl
48. ↵
    1. Wang, T.

    , A. Hamann, D. Spittlehouse, and C. Carroll. 2016. “Locally Downscaled and Spatially Customizable Climate Data for Historical and Future Periods for North America.” PLOS One 11 (6): e0156720. https://doi.org/10.1371/journal.pone.0156720.

    OpenUrlCrossRefPubMed
49. ↵
    1. Weber, M.

    , and G. Hauer. 2003. “A Regional Analysis of Climate Change Impacts on Canadian Agriculture.” Canadian Public Policy/Analyse de Politiques 29 (2): 163–80. https://doi.org/10.2307/3552453.

    OpenUrl
50. ↵
    1. Wooldridge, J. M

    . 2009. Introductory Econometrics: A Modern Approach. 4th ed. Mason, OH: South-Western, Cengage Learning.