Climatic Change

, Volume 81, Issue 1, pp 101–118

Climate and Rural Income


    • Yale University
  • Alan Basist
    • Commodity Hedgers Inc.
  • Pradeep Kurukulasuriya
    • Yale University
  • Ariel Dinar
    • World Bank

DOI: 10.1007/s10584-005-9010-5

Cite this article as:
Mendelsohn, R., Basist, A., Kurukulasuriya, P. et al. Climatic Change (2007) 81: 101. doi:10.1007/s10584-005-9010-5


This paper tests whether climate has an impact on per capita rural income. The study finds that total (agricultural and nonagricultural) income in rural counties and municipios in the US and Brazil are affected by climate. The study demonstrates that this income effect is due to changes in the net value of agriculture. Regions with better climates for agriculture support higher rural incomes and regions with poor climates have more rural poverty. The results also suggest that global warming will likely increase rural poverty.

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© Springer Science + Business Media, Inc 2006