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A Ricardian analysis of Mexican farms

  • DOI:
  • Published online: 08 December 2009

This paper measures the impact of climate on Mexican agriculture using a Ricardian analysis. The analysis relies on economic data from 621 individual farms that were collected in 2002. Data on climate, elevation, soils, and distance to nearest city were matched with each farm. The analysis reveals that farmland values in Mexico are sensitive to climate. On average, warmer temperatures reduce land value by 4,000 to 6,000 pesos per degree Celsius. Examining three climate scenarios for 2100, the models predict average losses of between −42% to −54% of land value in Mexico. As a percent of income, rainfed farms will suffer slightly larger damages than irrigated farms but comparisons between small and large farms are mixed.

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R. Darwin (1999), ‘The impacts of global warming on agriculture: a Ricardian analysis: comment’, American Economic Review 89: 10491052.

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Mexico National Rural Household Survey (ENHRUM) (2003), Program of Studies on Economic Change and Sustainability of the Agricultural Sector in Mexico (PRECESAM), El Colegio de Mexico, A.C., available at

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N. Seo and R. Mendelsohn (2008c), ‘An analysis of crop choice: adapting to climate change in Latin American farms’, Ecological Economics 67: 109116.

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Environment and Development Economics
  • ISSN: 1355-770X
  • EISSN: 1469-4395
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