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Hurricanes and Possible Intensity Increases: Effects on and Reactions from U.S. Agriculture

Published online by Cambridge University Press:  26 January 2015

Chi-Chung Chen  and
Bruce McCarl
Chi-Chung Chen
Affiliation:
Department of Applied Economics, National Chung-Hsing University, Taichung, Taiwan
Bruce McCarl
Affiliation:
Department of Agricultural Economics, Texas A&M University, College Station, TX
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Abstract

Hurricanes have caused substantial damage in parts of the U.S. Damages are increasing, perhaps as part of a natural cycle or perhaps in part related to global warming. This paper examines the economic damages that hurricanes cause to U.S. agriculture, estimates the increased damage from an increase in hurricane frequency/intensity, and examines the way that sectoral reactions reduce damages. The simulation results show that hurricanes and associated adjustments cause widespread damage and redistribute agricultural welfare. We find that crop mix shifts of vulnerable crops from stricken to nonstricken regions significantly mitigate hurricane damages.

Keywords

crop mixhurricane intensitystochastic agricultural sector modelQ24Q54R14
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 41 , Issue 1 , April 2009 , pp. 125 - 144
Copyright
Copyright © Southern Agricultural Economics Association 2009

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