CLIMATE IMPACTS ON AGGREGATE FARM VALUE - ACCOUNTING FOR ADAPTATION

This paper explains a Ricardian method which compares actual farmer be havior across different climates. The method incorporates farmer's ada ptation because it captures the outcome of each farmer matching his be havior to local climate conditions. This paper explores a new applicat ion of the Ricardian method capturing how climate affects both the per acre value of farms and how much land is farmed. These empirical rela tionships are used to predict the agricultural impacts of simple clima te warming scenarios.