Resource information
The authors use a Ricardian model to
test the relationship between annual net revenues and
climate across Israeli farms. They find that it is important
to include the amount of irrigation water available to each
farm in order to measure the response of farms to climate.
With irrigation water omitted, the model predicts that
climate change is strictly beneficial. But with water
included, the model predicts that only modest climate
changes are beneficial, while drastic climate change in the
long run will be harmful. Using the Atmospheric Oceanic
Global Circulation Models scenarios, the authors show that
farm net revenue is expected to increase by 16 percent in
2020, while in 2100 farm net revenue is expected to drop by
60-390 percent varying between the different scenarios.
Although Israel has a relatively warm climate, a mild
increase in temperature is beneficial due to the ability to
supply international markets with farm products early in the
season. The findings lead to the conclusion that securing
water rights to the farmers and international trade
agreements can be important policy measures to help farmers
adapt to climate change.
