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Water Availability,Degree Days,and the Potential Impact of Climate Change on Irrigated Agriculture in California
Authors:Wolfram Schlenker  W Michael Hanemann  Anthony C Fisher
Institution:(1) Department of Economics and School of International and Public Affairs, Columbia University, 420 West 118th Street, Mail Code 3323, New York, NY 10027, USA;(2) Department of Agricultural and Resource Economics, University of California at Berkeley, 207 Giannini Hall, Berkeley, CA 94720-3310, USA
Abstract:We use the geo-referenced June Agricultural Survey of the U.S. Department of Agriculture to match values of individual farms in California with a measure of water availability as mediated through irrigation districts, and degree days, a nonlinear transformation of temperature, controlling for other influences on value such as soil quality, to examine the potential effects of climate change on irrigated agriculture in California. Water availability strongly capitalizes into farmland values. The predicted decrease in water availability in the latest climate change scenarios downscaled to California can therefore be expected to have a significant negative impact on the value of farmland.
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