Hostname: page-component-586b7cd67f-2brh9 Total loading time: 0 Render date: 2024-11-22T16:33:21.679Z Has data issue: false hasContentIssue false

Will farmers fully adapt to monsoonal climate change through technological developments? An analysis of rice and livestock production in Thailand

Published online by Cambridge University Press:  01 July 2019

S. N. Seo*
Affiliation:
Muaebak Institute of Global Warming Studies, Seoul, Korea
*
Author for correspondence: S. N. Seo, E-mail: [email protected]
Rights & Permissions [Opens in a new window]

Abstract

The current paper tackles a critical question in climate change literature of whether farmers will be able to fully adapt to monsoonal climate changes owing to technological developments. Making use of the climate, agricultural and social data of Thailand from 1900 to 2015, this paper estimates a technological change instrumental variable by the growth of the normalized rice yield per hectare of land. The estimation shows that 0.98 of the growth in rice yield can be attributed to technological changes while the rest is accounted for by climate, soils and social factors. In the second stage regressions with the technological change indicator, the paper estimates the normalized numbers of the six most important types of live animals in Thailand: goats, chickens, cattle, sheep, pigs and buffaloes. Over the time period studied, the number of each of these live animals has increased vastly, except for buffaloes. The second-stage regressions show that the growth is largely attributable to technological changes, but monsoonal climate variables such as normalized monsoon precipitation ratio and normalized monsoon temperature are not significant factors. The results indicate that the rate of technological changes is overwhelming the rate of climate change on agriculture in Thailand.

Type
Climate Change and Agriculture Research Paper
Copyright
Copyright © Cambridge University Press 2019 

Introduction

The records of the global average temperature for the past 100 years show an upward trend, according to both instrumental and satellite records (IPCC, 2014; NOAA, 2016; UAH, 2017). The scientific literature on the impact of global warming begins nearly three decades ago and some of the most profound scientific advances have been made in the field of agricultural impacts (Adams et al., Reference Adams, Rosenzweig, Peart, Ritchie, McCarl, Glyer, Curry, Jones, Boote and Allen1990; Mendelsohn et al., Reference Mendelsohn, Nordhaus and Shaw1994; Rosenzweig and Parry, Reference Rosenzweig and Parry1994; Deschenes and Greenstone, Reference Deschênes and Greenstone2007; Schlenker and Roberts, Reference Schlenker and Roberts2009; Seo, Reference Seo2010b, Reference Seo2016a, Reference Seo2016d). The question most asked in the field has been how harmful global warming will be on agricultural production and farm households in low-latitude developing countries (Seo and Mendelsohn, Reference Seo and Mendelsohn2008a, Reference Seo and Mendelsohn2008b).

The literature has long concluded that the impact of global warming on agriculture in low-latitude developing countries will be severe (Reilly et al., Reference Reilly, Baethgen, Chege, van de Geijn, Erda, Iglesias, Kenny, Patterson, Rogasik, Rötter, Rosenzweig, Sombroek, Westbrook, Watson, Zinyowera, Moss and Dokken1996; Easterling et al., Reference Easterling, Aggarwal, Batima, Brander, Erda, Howden, Kirilenko, Morton, Soussana, Schmidhuber and Tubiello2007). It has been predicted that farmers in tropical, under-developed countries may suffer twice the damage predicted for farmers in mid-latitude, developed countries (Reilly et al., Reference Reilly, Baethgen, Chege, van de Geijn, Erda, Iglesias, Kenny, Patterson, Rogasik, Rötter, Rosenzweig, Sombroek, Westbrook, Watson, Zinyowera, Moss and Dokken1996; Auffhammer et al., Reference Auffhammer, Ramanathan and Vincent2006; Aggarwal and Mall, Reference Aggarwal and Mall2002; Parry et al., Reference Parry, Rosenzweig, Iglesias, Livermore and Fischer2004; Mendelsohn et al., Reference Mendelsohn, Dinar and Williams2006; Welch et al., Reference Welch, Vincent, Auffhammer, Moya, Dobermann and Dawe2010; Lobell et al., Reference Lobell, Schlenker and Costa-Roberts2011). The main reasons for such predictions were two-fold: first, the low-latitude poor countries are located in already climate adverse zones and second, these countries lack the adaptive capacity that developed countries in temperate climate zones possess.

Notwithstanding the dominant literature, behavioural economic studies of sub-Saharan African agriculture as well as Latin American agriculture have gradually revealed during the past decade that farmers in these low-latitude continents adopt a large array of farming practices and strategies, taking into account the changes in the climate regime. In Sub-Saharan Africa, a shift to heat-tolerant livestock species such as sheep and goats has occurred in response to a hotter climate regime (Seo and Mendelsohn, Reference Seo and Mendelsohn2008b). In arid climate zones, government-supported irrigation schemes as well as private irrigation schemes have made crop agriculture competitive even in these zones (Kurukulasuriya et al., Reference Kurukulasuriya, Kala and Mendelsohn2011; Seo, Reference Seo2011). A shift in planting and harvesting dates of various crops in response to changes at the start of the Indian monsoon season has been observed (Kala, Reference Kala2015). Farmers are found to have switched from a specialized cropping system to a mixed system of crops and livestock in order to cope with hotter temperatures, for example, by adding cattle, goats, or sheep to crop agriculture (Seo, Reference Seo2010a, Reference Seo2010b; Zhang et al., Reference Zhang, Hagerman and McCarl2013). An increase in climate risk in the form of higher variability of annual rainfall in sub-Saharan Africa forces farmers to adopt an integrated crop-livestock system, as does an increase in the diurnal temperature range (Seo, Reference Seo2012b). In a hot and humid climate regime, farmers in low-latitude countries have adapted by relying on forest products through a crop-forest or a crop-livestock-forest enterprise (Seo, Reference Seo2010c, Reference Seo2012a, Reference Seo2014).

Owing to the limited adaptation behaviour accounted for in the climate change impact models on agriculture, the literature has long predicted severe damage to agriculture in low-latitude developing countries (Rosenzweig and Parry, Reference Rosenzweig and Parry1994; Butt et al., Reference Butt, McCarl, Angerer, Dyke and Stuth2005; Welch et al., Reference Welch, Vincent, Auffhammer, Moya, Dobermann and Dawe2010; Lobell et al., Reference Lobell, Schlenker and Costa-Roberts2011). However, if a full range of adaptation portfolios were to be taken into account in the impact models, the impact of future climate change on agriculture even in these most vulnerable regions would turn out to be quite modest (Seo, Reference Seo2015, Reference Seo2016a, Reference Seo2016b).

Of all the regional climate regimes on Earth, a monsoonal climate is one of the most daunting climate regimes, if not the most, as far as farmers' adaptation behaviours are concerned. It is characterized by a drastic shift from a heavy downpour of rain in the monsoon season to a dry season with almost no rainfall (Chung and Ramanathan, Reference Chung and Ramanathan2006; Meehl and Hu, Reference Meehl and Hu2006; Bollasina et al., Reference Bollasina, Ming and Ramaswamy2011; Turner and Annamalai, Reference Turner and Annamalai2012). A recent study of Indian agriculture shows that the ratio of monsoon season precipitation over non-monsoon season precipitation is as large as 50 in some States, but still Indian farmers have found ways to adapt to the severe monsoonal climate regime by increasing the number of goats owned or adjusting planting dates of crops (Kala, Reference Kala2015; Seo, Reference Seo2016c).

The current paper examines agricultural data in Thailand, another country with a regional monsoon climate and with probably the best agricultural data available from monsoon regions, in order to answer the following two critical questions in the climate change literature. The first is whether farmers can adapt to a regional monsoon climate in order to minimize the damage from climate change. The second question is whether agriculture in the low-latitude country has fully adapted to changes in the climate system because of a rapid rate of technological developments, therefore future climatic changes will inflict no significant damage.

The agricultural data were obtained from the Food and Agriculture Organization (FAO), which documented agricultural production and value data from the 1950s onwards based on official statistics from Thailand, from which the current paper utilizes the data from 1960 to 2015 (FAO, 2017). Using historical changes in rice yield, the impact of technological changes on rice yield was estimated in the first stage, controlling climate variables, soils and geography, and social variables. In the second stage, the impacts of the monsoon climate regime on six types of farm animal, i.e. goats, chickens, cattle, sheep, pigs and buffaloes, are separated after controlling the impact of technological changes. For analysis, climate data were obtained from the Climate Research Unit at the University of East Anglia, which is made available at the World Bank Climate Change Knowledge Portal (Harris et al., Reference Harris, Jones, Osborn and Lister2014; World Bank, 2017a). Other socio-economic data, including rural population and political regime changes, were also obtained from the World Bank.

A theory of the impact of climate change on agriculture and a two-stage time series estimation method of the impact of climate change with an instrumental variable of technological progress is explained. The data and their sources and empirical results are presented subsequently, each of which addresses the above-stated questions on agricultural climate change adaptations.

Materials and methods

A farmer is faced with yearly fluctuations of weather as well as changes in climate ‘norms’, in addition to non-climate, non-weather variables (Reilly et al., Reference Reilly, Baethgen, Chege, van de Geijn, Erda, Iglesias, Kenny, Patterson, Rogasik, Rötter, Rosenzweig, Sombroek, Westbrook, Watson, Zinyowera, Moss and Dokken1996; Seo, Reference Seo2013). Climate ‘norms’ are expressed in the climate change literature as a ‘temperature normal’ and a ‘precipitation normal’ (UNFCCC, 1992; Le Treut et al., Reference Le Treut, Somerville, Cubasch, Ding, Mauritzen, Mokssit, Peterson, Prather, Solomon, Qin, Manning, Chen, Marquis, Averyt, Tignor and Miller2007), defined as a 30-year average of annual mean temperature or precipitation, most often for the period from 1961 to 1990. In the monsoonal climate zones, climate normals should reflect the regional climate regime, i.e. a monsoon climate (Chung and Ramanathan, Reference Chung and Ramanathan2006; Meehl and Hu, Reference Meehl and Hu2006; Bollasina et al., Reference Bollasina, Ming and Ramaswamy2011; Seo, Reference Seo2016c).

A regional monsoon climate is characterized by the monsoon precipitation ratio (MPR), defined as the ratio between monsoon season rainfall and dry season rainfall (Seo, Reference Seo2016c). The monsoon precipitation ratio normal is defined as the 30-year average of the ratio between monsoon season precipitation (PREC m) and non-monsoon season precipitation (PREC nm – from this point on, a normal variable is denoted by superscript O) (Seo, Reference Seo2016c):

(1)$$MPR_t^O \, = \,\displaystyle{1 \over {30}}\,\mathop \sum \limits_{k = t-30}^t \,\displaystyle{{PREC_{{\rm m},k}} \over {PREC_{{\rm nm},k}}}$$

where m denotes a monsoon season, nm a non-monsoon season, t a year and k an index.

Rice is the most important agricultural product in Thailand, which is the world's leading rice exporter (World Bank, 2009). In a major departure from other yield studies (Deschenes and Greenstone, Reference Deschênes and Greenstone2007; Schlenker and Roberts, Reference Schlenker and Roberts2009; Lobell et al., Reference Lobell, Schlenker and Costa-Roberts2011; Kala, Reference Kala2015), in order to separate the impact of a change in climate normals from the impact of a change in yearly weather, annual rice yield (y, in kg/ha) is averaged for the long-term, i.e., 30 years, to construct a rice yield normal:

(2)$$y_t^O \, = \,\displaystyle{1 \over {30}}\,\mathop \sum \limits_{k = t-30}^t y_t$$

The change in rice yield normal can be attributed to technological developments, after excluding the effects of changes in a monsoonal climate regime, changes in social variables such as population changes (POP) and political regimes (POL), and changes in soils and geography. With these variables as explanatory variables, TE a temperature normal, and s a season, the following Autoregressive Regression (AR(1)) was run to separate the impact of technological changes on rice yield (Johnston and DiNardo, Reference Johnston and DiNardo1997; Wooldridge, Reference Wooldridge2010):

(3)$$y_t^O \, = \,\left. {\displaystyle{{{\rm Production}} \over {{\rm Land}}}\,} \right \vert _t^O \, = \,f\,(y_{t-1}^0, POP_t^O, TE_{s,t}^O, MPR_t^O, \; POL_t) + \varepsilon _t$$

where ε t is the error term, assumed to be white noise. Note that soils and geography are time-invariant variables across the time period considered, therefore controlled exogenously (Soil Survey Staff, 1999; Driessen et al., Reference Driessen, Deckers and Nachtergaele2001; Deschenes and Greenstone, Reference Deschênes and Greenstone2007). Excluding the parameter estimates on monsoonal climate changes and social changes, the technological development indicator () is estimated using solely the AR(1) parameter estimate on rice yield, $\hat{\alpha}$:

(4)$$\tilde{y}_t^O = \hat{\alpha} y_{t-1}^0 $$

The technological change indicator in Eqn (4) is broadly defined. That is, it can be interpreted to capture both endogenous and exogenous (of agriculture) technological changes. It captures improved farming technologies, inputs and practices, research and education, advances in health sciences and public health (Nordhaus, Reference Nordhaus, Grübler, Nakicenovic and Nordhaus2002; Evenson and Gollin, Reference Evenson and Gollin2003). Therefore, this indicator also captures a host of changes in farming practices as an adaptation to climate change.

In the second stage, a climate response function is estimated for each of the six types of live animals, after controlling changes in the technological development indicator; put differently, an instrumental variable for agricultural technological changes. The following are the second-stage climate response functions with a technological change indicator for, in order, goats, chickens, cattle, pigs, sheep and buffaloes, respectively:

(5a)$$gg_t^O = \displaystyle{1 \over {30}}\mathop \sum \limits_{k = t-30}^t {\rm Goa}{\rm t}_k = g^1\,(\tilde{y}_t^O, TE_{s,t}^O, MPR_t^O, \; POP_t^O, \; POL_t)\, + \,\varphi _t^1 $$
(5b)$$cc_t^O = \displaystyle{1 \over {30}}\mathop \sum \limits_{k = t-30}^t {\rm Chicken}{\rm s}_k = g^2\,(\tilde{y}_t^O, TE_{s,t}^O, MPR_t^O, \; POP_t^O, POL_t)\, + \varphi _t^2 $$
(5c)$$bb_t^O = \displaystyle{1 \over {30}}\mathop \sum \limits_{k = t-30}^t {\rm Cattl}{\rm e}_k = g^3\,(\tilde{y}_t^O, TE_{s,t}^O, MPR_t^O, \; POP_t^O, POL_t) + \varphi _t^3 $$
(5d)$$ss_t^O = \displaystyle{1 \over {30}}\mathop \sum \limits_{k = t-30}^t {\rm Shee}{\rm p}_k = g^4\,(\tilde{y}_t^O, TE_{s,t}^O, MPR_t^O, \; POP_t^O, POL_t) + \varphi _t^4 $$
(5e)$$pp_t^O = \displaystyle{1 \over {30}}\mathop \sum \limits_{k = t-30}^t {\rm Pig}{\rm s}_k = g^5\,(\tilde{y}_t^O, TE_{s,t}^O, MPR_t^O, \; POP_t^O, POL_t) + \varphi _t^5 $$
(5f)$$ff_t^O = \displaystyle{1 \over {30}}\mathop \sum \limits_{k = t-30}^t {\rm Buffalo}{\rm s}_k = g^6\,(\tilde{y}_t^O, TE_{s,t}^O, MPR_t^O, \; POP_t^O, POL_t) + \varphi _t^6 $$

where gg, cc, bb, ss, pp and ff are a 30-year average of the annual number of goats, chickens, cattle, sheep, pigs and buffalos respectively; φ is the white-noise error term in each equation. Other terms are defined as before.

In the second-stage regressions of Eqns (5a) to (5f), a major departure from the climate and agriculture literature is control of the technological indicator, which captures the impact of technological advancements during the past 65 years. This methodology separates the impact of technological changes from rice yield changes after controlling the monsoon climate, social changes, political changes, and soils and geography. The existing literature does not explicitly capture the impact of technological changes (Deschenes and Greenstone, Reference Deschênes and Greenstone2007; Seo and Mendelsohn, Reference Seo and Mendelsohn2008a; Schlenker and Roberts, Reference Schlenker and Roberts2009; Welch et al., Reference Welch, Vincent, Auffhammer, Moya, Dobermann and Dawe2010; Lobell et al., Reference Lobell, Schlenker and Costa-Roberts2011; Massetti and Mendelsohn, Reference Massetti and Mendelsohn2011).

A second major departure is that these regressions identify the impact of changes in a monsoonal climate regime by the construction of the monsoon precipitation ratio normal. With exceptions of the recent studies on Indian agriculture (Kala, Reference Kala2015; Seo, Reference Seo2016c): past economic literature has not examined the characteristics and the impact of the monsoonal climate regime on agriculture.

The data for the current study were obtained from international data platforms: Climate data from the World Bank and agriculture data from the Food and Agriculture Organization (FAO) of the United Nations. Both data sets are long-term time series data. Climate data span more than a century from 1900 to 2015 and agriculture data span from the 1950s to 2015.

The climate data are from the World Bank Climate Change Knowledge Portal, from which monthly temperature and monthly precipitation since the year 1900 are obtained for Thailand (World Bank, 2017a). The World Bank data were provided by the Climate Research Unit at the University of East Anglia (Harris et al., Reference Harris, Jones, Osborn and Lister2014).

The agriculture data are from FAOSTAT (FAO, 2017). The FAOSTAT data are compiled by the FAO based on official data submitted by the Thailand government. Some agricultural data are provided from 1950 and all agricultural data examined in the current paper are available from 1960.

The current study examines the historical rice yield (kg produced per hectare of land) from 1960. Rice yield in Thailand and other South Asian countries has also received much attention from climate researchers (Auffhammer et al., Reference Auffhammer, Ramanathan and Vincent2006; Aggarwal and Mall, Reference Aggarwal and Mall2002; Welch et al., Reference Welch, Vincent, Auffhammer, Moya, Dobermann and Dawe2010).

Livestock management is an important sub-sector of agriculture for farmers in adapting to climatic change in Sub-Saharan Africa and Latin America (Seo and Mendelsohn, Reference Seo and Mendelsohn2008b; Seo, Reference Seo2010a, Reference Seo2010b, Reference Seo2012b; Zhang et al., Reference Zhang, Hagerman and McCarl2013). The numbers of live animals held by Thai farmers annually for the time period from 1960 to 2015 were examined using the six major types of animal farmed in the country, i.e. goats, chickens, cattle, sheep, pigs and buffaloes.

Social and political data were obtained from the World Bank Development Indicators, which relies on rural population changes and major political regime changes as social control variables (World Bank, 2017b). For a political change indicator, the present author created a dummy variable for the Thai Rak Thai (TRT) Party's coming into power in 2001 and winning all elections since then (Koutsoukis, Reference Koutsoukis2017).

Results

Is there evidence of climate change?

Taking observations of changes in climate normals in Thailand over the past 116 years since 1900 as a starting point, Fig. 1 shows the monsoon season temperature normal over the time period, with the temperature normal defined as a 30-year average and the monsoon season defined as falling in July, August, September and October. Other seasons in Thailand are a cold season and a summer season.

Fig. 1. Changes in monsoon temperature normal.

There was a slight rise in the linear trend line (Fig. 1). The monsoon season temperature normal has increased by 0.3 °C over the study time period. The linear change lies within the 95% prediction limits marked (Fig. 1) and therefore the change is not statistically significant.

Changes in the monsoon season precipitation normal since 1900 do not show a linear trend, but rather a cyclical pattern with an upswing followed by a downswing (Fig. 2). A linear trend line was fitted, but a 95% prediction limits show that the changes fall within the limits, meaning there was no statistical significance in the cyclical pattern.

Fig. 2. Changes in monsoon precipitation normal.

A key question, therefore, is: has there been no climate change at all in Thailand? Answering yes would be a hasty conclusion that is drawn mistakenly from reliance upon traditional measures of climate change, that is, precipitation normal and temperature normal. However, the monsoon climate system that prevails in South Asia is a different kind of climate system (Chung and Ramanathan, Reference Chung and Ramanathan2006; Kitoh et al., Reference Kitoh, Endo, Krishna Kumar, Cavalcanti, Goswami and Zhou2013; Seo, Reference Seo2016c), characterized as mentioned previously by the monsoon precipitation ratio. The monsoon precipitation ratio normal (MPRN) for Thailand has increased since 1900 from about 6.7 to about 7.7 (Fig. 3) and the 95% prediction limits show that the increase was highly significant (P < 0.05).

Fig. 3. Changes in monsoon precipitation ratio normal.

How to quantify technological changes?

Using rice yield data since the 1960s, the increase in rice yield normal since 1990 in Thailand increased almost linearly from 1800 kg/ha to 2600 kg/ha (Fig. 4), with the trend line showing a remarkable increase (World Bank, 2009). Note that the rice yield normal per ha shown is substantially lower than the highest rice yield in major rice-producing countries because the rice yield normal (Fig. 4) is the average of the preceding 30 years (World Bank, 2008).

Fig. 4. Changes in rice yield normal.

Did the changes in the monsoon precipitation ratio normal in the region wreak havoc on Thailand agriculture? Fig. 4 indicates that the answer is most likely no. The rice yield has increased rapidly over the time period. The rice yield normal, defined as a 30-year average, has increased from about 1800 kg/ha in 1990 to about 2600 kg/ha in 2015. The trend line shows that the rice yield normal has increased by 29.5 kg/ha/year (Fig. 4).

Technological developments such as variety improvement and modification (Fig. 4), which, as noted by the widely read World Bank reports, have improved rice productivity dramatically in Thailand and elsewhere in the world, have dominated over other factors such as climatic change (World Bank, 2008, 2009; Seo, Reference Seo2014). Technological changes have been occurring both exogenously and endogenously through, for example, Green Revolution investments in agriculture or perhaps climate policies (Nordhaus, Reference Nordhaus, Grübler, Nakicenovic and Nordhaus2002; Evenson and Gollin, Reference Evenson and Gollin2003; Gillingham et al., Reference Gillingham, Newell and Pizer2008). How can the impact of technological changes be separated from the impact of climatic factors and from the trend in the rice yield normal depicted in Fig. 4?

An Autoregressive model (AR1) of rice yield normal (kg produced per ha) with a lagged rice yield normal, monsoon climate variables and social change variables. Note that time-invariant factors such as soils and geography are left out of the set of explanatory variables (Table 1) (Deschenes and Greenstone, Reference Deschênes and Greenstone2007).

Table 1. Autoregressive regression model of rice yield (hg/ha)

None of the seasonal temperature normals for the monsoon season, the summer season and the cold season are significant (Table 1), but the monsoon precipitation ratio normal (MPRN) is significant (P < 0.05) in explaining the change in rice yield normal. Interestingly, an increase in MPRN by one unit leads to 23.4 kg/ha increase in rice yield normal, possibly due to various adaptation measures including the moving of planting dates and early forecasts of a monsoon season (Kala, Reference Kala2015).

Of the social variables, the rural population was not significant. The dummy variable for the Thai Rak Thai (TRT) Party, translated as Thai Loves Thai Party in English, which has taken power since 2001, is significant and positive. The TRT Party has had several reincarnations since it first took power in 2001, via democratic elections through to the Pheu Thai Party, which held power until the end of 2016. This variable is intended to capture the impact of the political change in Thailand. Throughout the entire time period of the agricultural data, used in this study, i.e. from 1960 onwards, the country was ruled by King Bhumibol Adulyadej, who reigned from 1946 to 2016.

The lagged rice yield normal variable is positive and significant (P < 0.05). A one-unit increase in lagged rice yield normal leads to a 0.98 unit increase in rice yield normal of the study period. This estimate captures the impact of technological changes, i.e. excluding the impacts of climate variables, soils/geographic variables, and social variables, the rest is attributed to the impact of technological changes. According to this estimate, 0.98 of the growth in rice yield normal is attributable to technological changes.

Have Thai farmers fully adapted to climate changes through technological developments?

In the second stage of the model, six technological-change controlled regressions were run (Table 2) for the six types of live animal owned by farmers, i.e. goats, chickens, cattle, sheep, pigs and buffaloes.

Table 2. Second stage regressions of the number of live animals with technological progress

The technological-change (TC) instrumental variable was constructed from the estimated parameters in Table 1. Specifically, it was calculated as the rice yield normal from the estimates in Table 1, excluding the impacts of climate, soils/geography and social variables. The constructed TC instrumental variable is entered in each regression in Table 2, along with other climate and social variables for each of the six regressions.

Across the six regressions, the dependent variable is the number of the corresponding live animals owned by Thai farmers averaged over the 30-year time period studied. The same climate and social variables used in Table 1 are entered in Table 2 without changes.

Prior to examining the regression results, changes in the normal numbers of each type of live animal should be noted (Figs 5–10). For goats, chickens and pigs, a steep linear increase in the normal number was seen during the time period of the current study. For cattle and sheep, a steep but fluctuating increase was seen. However, the normal number of buffaloes has declined steeply over the study period.

Fig. 5. Changes in the number of goats normal.

Fig. 6. Changes in the number of chickens normal.

Fig. 7. Changes in the number of cattle normal.

Fig. 8. Changes in the number of pigs normal.

Fig. 9. Changes in the number of sheep normal.

Fig. 10. Changes in the number of buffaloes normal.

These figures therefore show steep increases in the numbers of animals owned by Thai farmers over the past 60 years or so, except for buffaloes. The increases may be ascribed largely to improvements in various technological options and vaccines that have become available over time for livestock management, as well as in management practices including breed and species choices (Hahn, Reference Hahn1981; Mader and Davis, Reference Mader and Davis2004; Hahn et al., Reference Hahn, Gaughan, Mader, Eigenberg and DeShazer2009; Hoffmann, Reference Hoffmann2010; Fox et al., Reference Fox, Marion, Davidson, White and Hutchings2012; Zhang et al., Reference Zhang, Hagerman and McCarl2013).

In the case of buffaloes, it is suspected that the number of buffaloes declined because Thai people do not value them as a spiritual object of worship as Indian people do, according to Hindu tradition. The data show that Thai people have increasingly preferred other animals to buffaloes.

Across the six regressions (Table 2), the technological change (TC) instrumental variable is highly significant (P < 0.05). A one-unit increase in the TC variable, that is, a 1 kg increase in rice yield, results in a 310 unit increase in goats, an 110 unit increase in chickens, a 1680 unit increase in cattle, a 10 unit increase in sheep, a 3570 unit increase in pigs and a 3310 unit decrease in buffaloes.

These results indicate a very strong impact of the technological change on the increases of the farm animals during this time period, except for buffaloes. In the case of buffaloes, it can be interpreted that technological changes have caused economic growth, which in turn have made people value animals with higher economic value more than animals kept for spiritual reasons.

Has climate change played any role in changes in the numbers of live animals owned by Thai farmers? Across the six regressions, the monsoon precipitation ratio normal (MPRN) is not statistically significant in any of the six regressions. This result means that technological progress has dominated over effects of monsoon precipitation changes for the time period considered.

Almost none of the temperature normals were significant in explaining the numbers of animals, with the following exceptions. Excluding buffaloes, the monsoon temperature normal is significant (P < 0.05) and positive in the number of chickens. A 1 °C increase in monsoon temperature normal is associated with a 101 million increase in the number of chickens. Note that over the past 116 years, the monsoon season temperature normal has increased only by 0.3 °C.

For buffaloes, the monsoon season temperature normal is associated with a decrease of about 3 00 000 in the number of buffaloes, while the summer season temperature normal is associated with an increase of about 1 40 000.

Of the social variables, the Thai Rak Thai Party's coming into power helped to decrease the numbers of animals owned, specifically goats and cattle. This is probably the result of extensive support by the TRT Party for rice farmers, who are the main support bases of the Party (World Bank, 2009; Umeda, Reference Umeda2013).

An increase in rural population contributed to a decrease in the number of goats but increases in the numbers of chickens and cattle. These results may be attributed to the fact that rearing chickens or cattle is more labour-intensive than rearing goats. There are several reasons for this: for instance, goats are more resilient to various climate factors such as heat stress, heavy rainfall and monsoon rainfall variability (Seo and Mendelsohn, Reference Seo and Mendelsohn2008b; Seo, Reference Seo2016c). Further, people do not hold goats in as high esteem as cattle, to which spiritual values are often attached, especially in South Asian countries.

Discussion

The current paper tackles one of the most critical policy questions on climate change and global warming: will farmers fully adapt to future climatic changes because of a faster rate of technological developments? An examination of Thai agricultural data since 1960 shows increases in key agricultural production and ownership indicators, which overwhelm any increase in temperature normals or the monsoon precipitation ratio normal.

The data were analysed by a set of two-stage time series regressions. In the first stage, the magnitude of the impact of technological changes on Thai agriculture was estimated using historical changes in the rice yield normal data. The first stage regression showed that technological progress explains most of the changes in rice yield over the past 65 years. However, the monsoon precipitation ratio normal is also a significant factor.

In the second-stage regressions, the number of each species of farm animal owned by Thai farmers was estimated with the technological-change instrumental variable, climate variables, social variables and soil/geography variables. The second-stage regressions of the six animal species – goats, chickens, cattle, sheep, pigs and buffaloes – show that technological progress is a dominant cause of changes in the numbers of these animals. The monsoon precipitation ratio normal was not significant in any of the second-stage regressions.

These results show that Thai farmers have adapted successfully to changes in the climate over the past 65 years. By reaping the benefits of unprecedented technological advances which have been occurring both endogenously and exogenously of the agricultural sector, Thai farmers have been able to adapt fully to changes in the regional monsoon climate over the time period of the current study (Evenson and Gollin, Reference Evenson and Gollin2003; Nordhaus, Reference Nordhaus, Grübler, Nakicenovic and Nordhaus2002).

Will Thai farmers be able to adapt similarly to future climate change as well? Past climate changes were small in Thailand, the most significant of which was the rise in monsoon precipitation ratio normal from about 6.5 to about 8. A further rise in this ratio or an increase in extreme weather-related events may or may not be realized due to future climate changes (Ueda et al., Reference Ueda, Iwai, Kuwako and Hori2006; Bollasina et al., Reference Bollasina, Ming and Ramaswamy2011; May, Reference May2011; IPCC, 2014; NRC, 2013; NASEM et al., 2016). Even if a significant rise in this monsoon ratio materializes, the results of the current paper indicate strongly that Thai farmers will be able to adapt to most of those changes as long as the rate of technological change and the rate of climate change fundamentally do not break away from the present rates, which is a different conclusion from a number of other studies that predict severe damage from future extreme climate events on agriculture in low-latitude developing countries (Rosenzweig et al., Reference Rosenzweig, Iglesias, Yang, Epstein and Chivian2001; Aggarwal and Mall, Reference Aggarwal and Mall2002; Schlenker and Roberts, Reference Schlenker and Roberts2009). This conclusion is inevitable because the rate of technological development is far outpacing the rate of climate change at the present time.

This is an important empirical finding in the literature of climate change. It shows for the first time that farmers will be able to adapt fully to climatic changes, owing to rapid technological progress. This is consistent with findings from other continents such as Latin America, where adapting sensibly makes the impacts of future climatic changes very modest (Seo, Reference Seo2016a, Reference Seo2016b). It should be noted that the technological progress in the current paper is inclusive of numerous changes in farming behaviours and practices that have been associated with technological developments and advances in agricultural science and information.

From the policy angle of climate change discussions, the current paper adds further evidence to the trend in the climate policy circle in which adaptation has increasingly gained prominence in climate research and policy dialogues. The results in the current paper could provide critical inputs in negotiations of global climate financing such as the Green Climate Fund (GCF, 2011; UNFCCC, 2011, 2015; Seo, Reference Seo2015, Reference Seo2017).

Acknowledgement

I would like to thank the editor Dr. Bilsborrow and the referees who provided thoughtful comments.

Author ORCIDs

S. N. Seo, 0000-0002-2719-8315

Financial support

This research received no specific grant from any funding agency, commercial or not-for-profit sectors.

Conflict of interest

None.

Ethical standards

Not applicable.

References

Adams, RM, Rosenzweig, C, Peart, RM, Ritchie, JT, McCarl, BA, Glyer, JD, Curry, RB, Jones, JW, Boote, KJ and Allen, LH (1990) Global climate change and US agriculture. Nature 345, 219224.Google Scholar
Aggarwal, PK and Mall, PK (2002) Climate change and rice yields in diverse agro-environments of India. II. Effect of uncertainties in scenarios and crop models on impact assessment. Climatic Change 52, 331343.Google Scholar
Auffhammer, M, Ramanathan, V and Vincent, JR (2006) Integrated model shows that atmospheric brown clouds and greenhouse gases have reduced rice harvests in India. Proceedings of the National Academy of Sciences of the USA 103, 1966819672.Google Scholar
Bollasina, MA, Ming, Y and Ramaswamy, V (2011) Anthropogenic aerosols and the weakening of the south Asian summer monsoon. Science 334, 502505.Google Scholar
Butt, TA, McCarl, BA, Angerer, J, Dyke, PT and Stuth, JW (2005) The economic and food security implications of climate change in Mali. Climatic Change 68, 355378.Google Scholar
Chung, CE and Ramanathan, V (2006) Weakening of North Indian SST gradients and the monsoon rainfall in India and the Sahel. Journal of Climate 19, 20362045.Google Scholar
Deschênes, O and Greenstone, M (2007) The economic impacts of climate change: evidence from agricultural output and random fluctuations in weather. American Economic Review 97, 354385.Google Scholar
Driessen, P, Deckers, J and Nachtergaele, F (2001) Lecture Notes on the Major Soils of the World. World Soil Resources Reports No. 94. Rome, Italy: Food and Agriculture Organization.Google Scholar
Easterling, WE, Aggarwal, PK, Batima, P, Brander, KM, Erda, L, Howden, SM, Kirilenko, A, Morton, J, Soussana, J-F, Schmidhuber, J and Tubiello, FN (2007) Food, fibre and forest products. In Climate Change 2007: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge, UK: Cambridge University Press, pp. 274313.Google Scholar
Evenson, R and Gollin, D (2003) Assessing the impact of the Green Revolution, 1960 to 2000. Science 300, 758762.Google Scholar
Food and Agriculture Organization (FAO) (2017) FAOSTAT. Rome, Italy: FAO.Google Scholar
Fox, NJ, Marion, G, Davidson, RS, White, PCL and Hutchings, MR (2012) Livestock helminths in a changing climate: approaches and restrictions to meaningful predictions. Animals 2, 93107.Google Scholar
Gillingham, K, Newell, RG and Pizer, WA (2008) Modeling endogenous technological changes for climate policy analysis. Energy Economics 30, 27342753.Google Scholar
Green Climate Fund (GCF) (2011) Governing Instrument for the Green Climate Fund. Songdo City, South Korea: GCF.Google Scholar
Hahn, GL (1981) Housing and management to reduce climatic impacts on livestock. Journal of Animal Science 52, 175186.Google Scholar
Hahn, GL, Gaughan, JB, Mader, TL and Eigenberg, RA (2009) Chapter 5: Thermal indices and their applications for livestock environments. In DeShazer, JA (ed.), Livestock Energetics and Thermal Environmental Management. St. Joseph, MI, USA: ASABE, pp. 113130.Google Scholar
Harris, I, Jones, PD, Osborn, TJ and Lister, DH (2014) Updated high-resolution grids of monthly climatic observations – the CRU TS3.10 Dataset. International Journal of Climatology 34, 623642.Google Scholar
Hoffmann, I (2010) Climate change and the characterization, breeding and conservation of animal genetic resources. Animal Genetics 41(suppl. 1), 3246.Google Scholar
Intergovernmental Panel on Climate Change (IPCC) (2014) Climate Change 2014: The Physical Science Basis, The Fifth Assessment Report of the IPCC. Cambridge, UK: Cambridge University Press.Google Scholar
Johnston, J and DiNardo, J (1997) Econometric Methods, 4th Edn. New York, USA: McGraw-Hill.Google Scholar
Kala, N (2015) Ambiguity aversion and learning in a changing world: The potential effects of climate change from Indian agriculture (Ph.D. dissertation). Yale University, New Haven, USA.Google Scholar
Kitoh, A, Endo, H, Krishna Kumar, K, Cavalcanti, IFA, Goswami, P and Zhou, T (2013) Monsoons in a changing world: a regional perspective in ca global context. Journal of Geophysical Research: Atmospheres 118, 30533065.Google Scholar
Koutsoukis, J (2017) Ex-Thai leader's exile spurs debate: Is Thaksin Era over? Bloomberg News 27 August 2017, New York. Available at https://www.bloomberg.com/news/articles/2017-08-27/ex-thai-leader-s-exile-spurs-debate-is-the-thaksin-era-over (Accessed 22 May 2019).Google Scholar
Kurukulasuriya, P, Kala, N and Mendelsohn, R (2011) Adaptation and climate change impacts: a structural Ricardian model of irrigation and farm income in Africa. Climate Change Economics 2, 149174.Google Scholar
Le Treut, H, Somerville, R, Cubasch, U, Ding, Y, Mauritzen, C, Mokssit, A, Peterson, T and Prather, M (2007) Historical overview of climate change. In Solomon, S, Qin, D, Manning, M, Chen, Z, Marquis, M, Averyt, KB, Tignor, M and Miller, HL (eds). Climate Change 2007: The Physical Science Basis. The Fourth Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge, UK: Cambridge University Press, pp. 93127.Google Scholar
Lobell, DB, Schlenker, W and Costa-Roberts, J (2011) Climate trends and global crop production since 1980. Science 333, 616620.Google Scholar
Mader, TL and Davis, MS (2004) Effect of management strategies on reducing heat stress of feedlot cattle: feed and water intake. Journal of Animal Science 82, 30773087.Google Scholar
Massetti, E and Mendelsohn, R (2011) Estimating Ricardian models with panel data. Climate Change Economics 2, 301319.Google Scholar
May, W (2011) The sensitivity of the Indian summer monsoon to a global warming of 2 °C with respect to pre-industrial times. Climate Dynamics 37, 18431868.Google Scholar
Meehl, GA and Hu, A (2006) Megadroughts in the Indian monsoon region and southwest North America and a mechanism for associated multidecadal Pacific sea surface temperature anomalies. Journal of Climate 19, 16051623.Google Scholar
Mendelsohn, R, Nordhaus, WD and Shaw, D (1994) The impact of global warming on agriculture: a Ricardian analysis. American Economic Review 84, 753771.Google Scholar
Mendelsohn, R, Dinar, A and Williams, L (2006) The distributional impact of climate change on rich and poor countries. Environment and Development Economics 11, 159178.Google Scholar
National Academies of Sciences, Engineering, and Medicine (2016) Attribution of Extreme Weather Events in the Context of Climate Change. Washington, DC, USA: National Academies Press.Google Scholar
National Research Council (NRC) (2013) Abrupt Impacts of Climate Change: Anticipating Surprises. Washington, DC, USA: National Academies Press.Google Scholar
NOAA National Centers for Environmental Information (NCEI) (2016) State of the Climate: National Overview for Annual 2015. Silver Springs, MD, USA: NOAA. Available at http://www.ncdc.noaa.gov/sotc/national/201513 (Accessed 22 May 2019).Google Scholar
Nordhaus, WD (2002) Modeling induced innovation in climate change policy. In Grübler, A, Nakicenovic, N and Nordhaus, W (eds), Technological Change and the Environment. Washington, DC, USA: Resources for the Future Press, pp. 182209.Google Scholar
Parry, ML, Rosenzweig, C, Iglesias, A, Livermore, M and Fischer, G (2004) Effects of climate change on global food production under SRES emissions and socio-economic scenarios. Global Environmental Change 14, 5367.Google Scholar
Reilly, J, Baethgen, W, Chege, F, van de Geijn, S, Erda, L, Iglesias, A, Kenny, G, Patterson, D, Rogasik, J, Rötter, R, Rosenzweig, C, Sombroek, W and Westbrook, J (1996) Agriculture in a changing climate: impacts and adaptations. In Watson, R, Zinyowera, M, Moss, R and Dokken, D (eds), Climate Change 1995: Impacts, Adaptations, and Mitigation of Climate Change. Scientific-Technical Analyses. Contribution of Working Group II to the Second Assessment Report of the Intergovernmental Panel on Climate Change. Intergovernmental Panel on Climate Change (IPCC). Cambridge, UK: Cambridge University Press, pp. 427467.Google Scholar
Rosenzweig, C and Parry, ML (1994) Potential impact of climate change on world food supply. Nature 367, 133138.Google Scholar
Rosenzweig, C, Iglesias, A, Yang, XB, Epstein, PR and Chivian, E (2001) Climate change and extreme weather events: implications for food production, plant diseases, and pests. Global Change and Human Health 2, 90104.Google Scholar
Schlenker, W and Roberts, MJ (2009) Nonlinear temperature effects indicate severe damages to U.S. Crop yields under climate change. Proceedings of the National Academy of Sciences of the USA 106, 1559415598.Google Scholar
Seo, SN (2010 a) Is an integrated farm more resilient against climate change? A micro-econometric analysis of portfolio diversification in African agriculture. Food Policy 35, 3240.Google Scholar
Seo, SN (2010 c) Managing forests, livestock, and crops under global warming: a micro-econometric analysis of land use changes in Africa. Australian Journal of Agricultural and Resource Economics 54, 239258.Google Scholar
Seo, SN (2010 b) A microeconometric analysis of adapting portfolios to climate change: adoption of agricultural systems in Latin America. Applied Economic Perspectives and Policy 32, 489514.Google Scholar
Seo, SN (2011) An analysis of public adaptation to climate change using agricultural water schemes in South America. Ecological Economics 70, 825834.Google Scholar
Seo, SN (2012 a) Adapting natural resource enterprises under global warming in South America: a mixed logit analysis. Economia: The Journal of the Latin American and Caribbean Economic Association 12, 111135.Google Scholar
Seo, SN (2012 b) Decision making under climate risks: an analysis of sub-Saharan farmers’ adaptation behaviors. Weather, Climate, and Society 4, 285299.Google Scholar
Seo, SN (2013) An essay on the impact of climate change on US agriculture: weather fluctuations, climatic shifts, and adaptation strategies. Climatic Change 121, 115124.Google Scholar
Seo, SN (2014) Evaluation of the Agro-Ecological Zone methods for the study of climate change with micro farming decisions in sub-Saharan Africa. European Journal of Agronomy 52, 157165.Google Scholar
Seo, SN (2015). Helping low-latitude, poor countries with climate change. Regulation. Winter 2015–2016, pp. 68.Google Scholar
Seo, SN (2016 d) Microbehavioral Econometric Methods: Theories, Models, and Applications for the Study of Environmental and Natural Resources. Amsterdam, the Netherlands: Academic Press (Elsevier).Google Scholar
Seo, SN (2016 b) The micro-behavioral framework for estimating total damage of global warming on natural resource enterprises with full adaptations. Journal of Agricultural, Biological, and Environmental Statistics 21, 328347.Google Scholar
Seo, SN (2016 a) Modeling farmer adaptations to climate change in South America: a micro-behavioral economic perspective. Environmental and Ecological Statistics 23, 121.Google Scholar
Seo, SN (2016c) Untold tales of goats in deadly Indian monsoons: adapt or rain-retreat under global warming? Journal of Extreme Events 3, 121.Google Scholar
Seo, SN (2017) The Behavioral Economics of Climate Change: Adaptation Behaviors, Global Public Goods, Breakthrough Technologies, and Policy-Making. Amsterdam, the Netherlands: Academic Press (Elsevier).Google Scholar
Seo, SN and Mendelsohn, R (2008a) A Ricardian analysis of the impact of climate change on South American farms. Chilean Journal of Agricultural Research 68, 6979.Google Scholar
Seo, SN and Mendelsohn, R (2008b) Measuring impacts and adaptations to climate change: a Structural Ricardian model of African livestock management. Agricultural Economics 38, 151165.Google Scholar
Soil Survey Staff (1999) Soil Taxonomy. A Basic System of Soil Classification for Making and Interpreting Soil Surveys. Agricultural Handbook 436, Natural Resources Conservation Service. Washington, DC, USA: United States Department of Agriculture.Google Scholar
Turner, AG and Annamalai, H (2012) Climate change and the South Asian summer monsoon. Nature Climate Change 2, 587595.Google Scholar
Ueda, H, Iwai, A, Kuwako, K and Hori, ME (2006) Impact of anthropogenic forcing on the Asian summer monsoon as simulated by eight GCMs. Geophysical Research Letters 33, 14.Google Scholar
Umeda, S (2013) Thailand: Crisis in Thai Rice Pledging Scheme. Washington, DC, USA: Library of Congress. Available at http://www.loc.gov/law/foreign-news/article/thailand-crisis-in-thai-rice-pledging-scheme/ (Accessed 22 May 2019).Google Scholar
United Nations Framework Convention on Climate Change (UNFCCC) (1992) United Nations Framework Convention on Climate Change. Bonn, Germany: United Nations.Google Scholar
United Nations Framework Convention on Climate Change (UNFCCC) (2011) Report of the Transitional Committee for the Design of Green Climate Fund. Report no. FCCC/CP/2011/6. Bonn, Germany: UNFCCC. Available at https://unfccc.int/resource/docs/2011/cop17/eng/06.pdf (Accessed 22 May 2019).Google Scholar
United Nations Framework Convention on Climate Change (UNFCCC) (2015) The Paris Agreement. Bonn, Germany: UNFCCC.Google Scholar
University of Alabama at Huntsville (UAH) (2017) Global Temperature Record. Huntsville, AL, USA: The University of Alabama in Huntsville. Available at https://www.nsstc.uah.edu/climate/ (Accessed 22 May 2019).Google Scholar
Welch, JR, Vincent, JR, Auffhammer, M, Moya, PF, Dobermann, A and Dawe, D (2010) Rice yields in tropical/subtropical Asia exhibit large but opposing sensitivities to minimum and maximum temperatures. Proceedings of the National Academy of Sciences of the USA 107, 1456214567.Google Scholar
Wooldridge, JM (2010) Econometric Analysis of Cross Section and Panel Data. Boston, MA, USA: MIT Press.Google Scholar
World Bank (2008) World Development Report 2008: Agriculture for Development. Washington, DC, USA: World Bank.Google Scholar
World Bank (2009) Awakening Africa's Sleeping Giant: Prospects for Commercial Agriculture in the Guinea Savannah Zone and Beyond. Washington, DC, USA: The International Bank for Reconstruction and Development / The World Bank.Google Scholar
World Bank (2017 a) Climate Change Knowledge Portal for Development Practitioners and Policy Makers: Thailand. Washington, DC, USA: World Bank. Available at https://climateknowledgeportal.worldbank.org/country/thailand (Accessed 22 may 2019).Google Scholar
World Bank (2017 b) World Development Indicators. Washington, DC, USA: World Bank.Google Scholar
Zhang, YW, Hagerman, AD and McCarl, BA (2013) Influence of climate factors on spatial distribution of Texas cattle breeds. Climatic Change 118, 183195.Google Scholar
Figure 0

Fig. 1. Changes in monsoon temperature normal.

Figure 1

Fig. 2. Changes in monsoon precipitation normal.

Figure 2

Fig. 3. Changes in monsoon precipitation ratio normal.

Figure 3

Fig. 4. Changes in rice yield normal.

Figure 4

Table 1. Autoregressive regression model of rice yield (hg/ha)

Figure 5

Table 2. Second stage regressions of the number of live animals with technological progress

Figure 6

Fig. 5. Changes in the number of goats normal.

Figure 7

Fig. 6. Changes in the number of chickens normal.

Figure 8

Fig. 7. Changes in the number of cattle normal.

Figure 9

Fig. 8. Changes in the number of pigs normal.

Figure 10

Fig. 9. Changes in the number of sheep normal.

Figure 11

Fig. 10. Changes in the number of buffaloes normal.