Skip to main content

Advertisement

SpringerLink
Log in

The Impact of Climate Change on Agriculture: Findings from Households in Vietnam

  • Published:
Environmental and Resource Economics Aims and scope Submit manuscript

Abstract

This paper examines farm household-level impacts of climate change by examining the relationship between climatic variables and Vietnamese agricultural output. The Ricardian technique is applied with panel data which accounts for both adaptation strategies and household characteristics. This study proposes a two-stage Hsiao model to correct for collinearity between climatic variables and individual effects. The results show that in the dry season, increases in temperatures are beneficial to all farms in the warmer southern regions, while increases in precipitation will damage only irrigated farms in the Central and South regions. The impact of higher temperature in the wet season is similar, except that it will negatively affect net revenue of irrigated farms in the long run. More rainfall in the wet season will increase net revenue in the North region only. Finally, this study combines the estimated results with future climate scenarios to predict how future changes in climate will affect farmers on aggregate.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6

Similar content being viewed by others

Notes

  1. This study also employs a log-linear functional form which uses log of net revenue as the dependent variable. As presented in Tables 10 and 11 (“Appendix”), the estimated results are similar to the linear model.

References

  • Cline WR (1996) The impact of global warming of agriculture: comment. Am Econ Rev 86(5):1309–1311

    Google Scholar 

  • Dasgupta S, Huq M, Khan ZH, Ahmed MMZ, Mukherjee N, Khan MF, Pandey K (2014) Cyclones in a changing climate: the case of Bangladesh. Clim Dev 6(2):96–110

    Article  Google Scholar 

  • De Salvo M, Raffaelli R, Moser R (2013) The impact of climate change on permanent crops in an Alpine region: a Ricardian analysis. Agric Syst 118:23–32

    Article  Google Scholar 

  • Deschenes O, Greenstone M (2007) The economic impacts of climate change: evidence from agricultural output and random fluctuations in weather. Am Econ Rev 97(1):354–385

    Article  Google Scholar 

  • Ding Y, Ren G, Shi G, Gong P, Zheng X, Zhai P, Wang H (2006) National assessment report of climate change (I): climate change in China and its future trend. Adv Clim Change Res 2(1):3–8

    Google Scholar 

  • Hsiao C (2014) Analysis of panel data. Cambridge University Press, Cambridge

    Book  Google Scholar 

  • IPCC (2007) IPCC (2007): climate change the physical science basis. In: Paper presented at the AGU Fall Meeting Abstracts

  • ISPONRE (2009) Viet Nam Assessment Report on Climate Change (VARCC). Institute of Strategy and Policy on natural resources and environment, Viet Nam

  • Kawasaki J, Herath S (2011) Impact assessment of climate change on rice production in Khon Kaen province, Thailand. Journal of ISSAAS 17:14–28

    Google Scholar 

  • Kelbore Z G (2012) An analysis of the impacts of climate change on crop yield and yield variability in Ethiopia. Munich Personal RePEc Archive

  • Kurukulasuriya P, Mendelsohn R, Hassan R, Dinar A (2008) A Ricardian analysis of the impact of climate change on African cropland. Afr J Agric Resour Econ 2(1):1–23

    Google Scholar 

  • Le Thi Diem Phuc, Vo Duc Hoang Vu, Huynh Thi Dan Xuan (2015) Estimating the economic impacts of climate change on crop production in coastal provinces of the mekong delta vietnam. WorldFish

  • Massetti E, Mendelsohn R (2011) Estimating Ricardian models with panel data. Clim Change Econ 2(04):301–319

    Article  Google Scholar 

  • Mendelsohn R, Nordhaus W (1999) The impact of global warming on agriculture: a Ricardian analysis: reply. Am Econ Rev 89(4):1046–1048

    Article  Google Scholar 

  • Mendelsohn R, Nordhaus WD, Shaw D (1994) The impact of global warming on agriculture: a Ricardian analysis. Am Econ Rev 84(4):753–771

    Google Scholar 

  • Passel S v, Massetti E, Mendelsohn R (2012) A Ricardian analysis of the impact of climate change on European agriculture. CMCC Research Paper (RP0164)

  • Schlenker W, Hanemann WM, Fisher AC (2005) Will US agriculture really benefit from global warming? Accounting for irrigation in the hedonic approach. Am Econ Rev 95(1):395–406

    Article  Google Scholar 

  • To PX, Dressler WH, Mahanty S, Pham TT, Zingerli C (2012) The prospects for payment for ecosystem services (PES) in Vietnam: a look at three payment schemes. Hum Ecol 40(2):237–249

    Article  Google Scholar 

  • Torriani D, Calanca P-L, Schmid S, Beniston M, Fuhrer J (2007) Potential effects of changes in mean climate and climate variability on the yield of winter and spring crops in Switzerland. Clim Res 34:59–69

    Article  Google Scholar 

  • Wang J, Mendelsohn R, Dinar A, Huang J, Rozelle S, Zhang L (2009) The impact of climate change on China’s agriculture. Agric Econ 40(3):323–337

    Article  Google Scholar 

  • World Bank (2010) Economics of adaptation to climate change

  • Yu B, Zhu T, Breisinger C, Hai N M (2010) Impacts of climate change on agriculture and policy options for adaptation. International Food Policy Research Institute

Download references

Author information

Authors and Affiliations

  1. International Development and Trade Research Group, School of Economics, Finance and Marketing, College of Business, Royal Melbourne Institute of Technology, Building 80, Level 11, 445 Swanston Street, Melbourne, VIC, 3000, Australia

    Trong Anh Trinh

Authors
  1. Trong Anh Trinh
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Trong Anh Trinh.

Appendix

Appendix

See Tables 10, 11 and 12.

Table 10 The estimation of Hsiao log linear model—stage 1
Full size table
Table 11 The Estimation of Hsiao log linear model—stage 2
Full size table
Table 12 The Estimation of Hsiao model—-stage 2 (rice production)
Full size table

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Trinh, T.A. The Impact of Climate Change on Agriculture: Findings from Households in Vietnam. Environ Resource Econ 71, 897–921 (2018). https://doi.org/10.1007/s10640-017-0189-5

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10640-017-0189-5

Keywords

JEL Classification

Search

Navigation