The Impact of Climate Change on Rice Production: Heterogeneity and Uncertainty

"The Impact of Climate Change on Rice Production: Heterogeneity and Uncertainty." Kamilya Tazhibayeva and Robert M. Townsend. Working Paper, 2012. ABSTRACT PDF

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2012

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This paper specifies a three-stage production function for rice cultivation which incorporates the sequential nature of both production shocks, including weather, and input choices based on sequentially updated information sets of history of realized shocks and observed changes in crop growth. This framework is particularly well-suited for evaluating the effect of climate change on crop cultivation practices and yields. Townsend and Tazhibayeva apply the model to an 11-year panel of rice farmers in Thailand and find substantial heterogeneity among farmers in the effect of both weather shocks and climate change on yields.