Adapting to Climate Change Through Tile Drainage: A Structural Ricardian Analysis

This paper provides the first estimates of the effects of climate change on agriculture while explicitly modeling tile drainage. We show in a simple conceptual model that the value of precipitation should differ between drained and non-drained land, implying that pooling these lands could bias estimates of the effects of climate change on land values. We test this hypothesis by estimating a Structural Ricardian model for U.S. counties east of the 100th meridian. Consistent with our theoretical model, our estimates show that the value of precipitation is higher on non-drained lands.


Issue Date:
2016
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/235932
Page range:
2-24
Total Pages:
24
JEL Codes:
Q10; Q15; Q51; Q54
Series Statement:
8836




 Record created 2017-04-01, last modified 2017-04-26

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