The Impact of Climate Change on the Profitability of Site Specific Technologies

Finger, Robert and Gerwig, Claude N. (2007): The Impact of Climate Change on the Profitability of Site Specific Technologies.

Abstract

Site Specific Technologies (SST) can reduce environmental pollution caused by common agricultural practice. Using a case study for corn yields, we investigate the impact of climate change (CC) on profitability of SSTs. We find CC to increase spatial variability of soils with respect to optimal input application and yield variability. This leads, ceteris paribus, to higher incentives for SST adoption in the future.

• Item Type: MPRA Paper
• Institution: ETH Zürich, Institute for Environmental Decisions
• Language: English
• Keywords: Climate Change; Site Specific Technologies; Adaptation; Crop Production Function
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate ; Natural Disasters and Their Management ; Global Warming; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General > Q01 - Sustainable Development

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