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Irrigation as an adaptive strategy to climate change: an economic perspective on Brazilian agriculture

Published online by Cambridge University Press:  01 April 2014

Dênis Antônio da Cunha ,
Alexandre Bragança Coelho  and
José Gustavo Féres
Dênis Antônio da Cunha
Affiliation:
Universidade Federal de Viçosa, Departamento de Economia Rural, Avenida P.H. Rolfs, s/n, Campus Universitário, 36570-000, Viçosa, Brazil. Tel: +55 31 38991335. E-mail: [email protected]
Alexandre Bragança Coelho
Affiliation:
Universidade Federal de Viçosa, Departamento de Economia Rural, Brazil. E-mail: [email protected]
José Gustavo Féres
Affiliation:
Instituto de Economia Aplicada, Brazil. E-mail: [email protected]
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Abstract

This paper analyzes the potential effects of climate change on Brazilian agriculture by considering irrigation as an adaptive strategy. Investigations were performed to determine how climatic variability influences irrigation and whether this adaptive measure actually reduces producers' vulnerability to climate change. We used a simultaneous equations model with endogenous switching to account for the heterogeneity in the decision of whether to use adaptive measures. We compared the expected land values under the actual and counterfactual cases of farm households that either adapt or do not adapt to climate change. Simulation results show that irrigation can be an effective tool for counteracting the harmful effects of climate change. The income of farmers tends to increase on lands where irrigation technologies are practiced. These conclusions confirm the need to invest in adaptation strategies to prepare Brazil for coping with the adverse effects of global climate change.

Type
Research Article
Information
Environment and Development Economics , Volume 20 , Issue 1 , February 2015 , pp. 57 - 79
Copyright
Copyright © Cambridge University Press 2014 

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