The effect of development on the climate sensitivity of agriculture

This paper examines whether a country's stage of development affects its cl imate sensitivity. The paper begins with a model of agriculture that shows that the effect of development on climate sensitivity is ambiguous, dependi ng on the substitution between capital and climate. To resolve this issue, the climate sensitivity of agriculture in the United States, Brazil, and In dia is measured using a Ricardian approach. Relying on both intertemporal a s well as cross-country comparisons, the empirical analysis suggests that i ncreasing development reduces climate sensitivity.