Journal of Natural Environment

Investigation of the climatic variables' impact on the agricultural sector economic rent in Iran (Case study: irrigated barley)

Document Type : Research Paper

Authors

1 Department of Agricultural Economics, Faculty of Agricultural management, Gorgan University of Agricultural Sciences & Natural resources, Gorgan, Iran.

2 Department of Agricultural Economics, Faculty of Agriculture, Shahid Bahonar University of Kerman, Kerman, Iran.

10.22059/jne.2024.366932.2614

Abstract

Regarding the importance of climate change on agriculture sector, in this study, the economic impacts of climate change on irrigated baley land rent are investigated by using the panel data technique and random effect model (2001-2018 agricultural year). The needed data were collected using secondary data and referring to the relevant organizations and institutions such as Iran Meteorological Organization and the Ministry of Agriculture Jihad. Based on the result, after determination of futer value of rent, the trend of irrigated barley land rent in some provine is positive and in the some province is negative.  The land rent of East Azarbayejan, Ardebil, Razavi Khorasan, South Khorasan, North Khorasan, Qom, Kerman, and Khuzestan provinces is decreased. The land rent of Tehran, Esfahan, Qazvin, Hamedan, and Markazi provinces is increased. In addition, With one percent increase in the precipitation, barley rent increases by 28351 (10 Rial). there is a positive relation between pericipitation and agricultural land rent. Also, labor and fertilizer has positive effect on irrigated barley land rent.

Keywords

Ali, S., Liu, Y., Ishaq, M., Shah, T., Ilyas, A., Din, I.U., 2017. Climate change and iIts impact on the yield of major food crops: evidence from Pakistan. Foods 6(6), 2-19.
Attavanich, W., McCarl, B., 2011. The effect of climate change, CO2 fertilization, and crop production technology on crop yields and its economic implications on market outcomes and welfare distribution.  Agricultural and Applied Economics Association (AAEA) Conferences, Pittsburgh, Pennsylvania, USA. pp. 170-180.
Bahadoran, F., Rezaee, A., Eshraghi, F., Keramatzadeh, A., 2020. Evaluation Of The Climate Change Impacts On Irrigated Wheat Lands Rent In Iran. Journal of Environmental Studies 46(2), 343-355. (In Persian)
Ben Zaied Y. 2013. Long run versus short run analysis of climate change impacts on agriculture.  Economic Research Forum Working Papers. No 8080.
Bernard, B. M., Song, Y., Narcisse, M., Hena, S., & Wang, X. 2023. A nonparametric analysis of climate change nexus on agricultural productivity in Africa: implications on food security. Renewable Agriculture and Food Systems 38, 1-11.
Cross, M.S., Zavaleta, E.S., Bachelet, D., Brooks, M. L., Enquist, C.A., Fleishman, E., Graumlich, L., Hannah, L.,  Hansen, L.,  Hayward, G., Koopman, M., Groves, C., Tabor, G.M. 2012. The Adaptation for Conservation Targets (ACT) framework: a tool for incorporating climate change into natural resource management. Environmental Management 50, 341-351.
Etwire, P. M., Fielding, D., & Kahui, V. 2019. Climate Change, Crop Selection and Agricultural Revenue in Ghana: A Structural Ricardian Analysis. Journal of Agricultural Economics 70(2), 488-506
Fisher, R.A., Byerlee, D. and Edmeades. G.O. 2009. Can technology deliver on the yield challenge to 2050? FAO Expert Meeting on How to feed the World in 2050.
Janat sadeghi, M., Shahnoushi Foroushani, N., Daneshvar kakhki, M., Dourandish, A., Mohammadi, H., 2018. Assessing the effective factors on the yield of strategic agricultural products (wheat and barley) in Khorasan Razavi Province. Agricultural Economics 12(2), 111-134. (In Persian)
Kazemi-nejad, R., Rezaee, A., Joolaie, R., Keramatzadeh, A. 2022. Investigating the effects of water resources consumption reduction policies on agricultural sustainability in different climates in Iran. Environment, Development and Sustainability pp. 1-26.
Kumar, N., Maiti, D., 2024. Long-run macroeconomic impact of climate change on total factor productivity—Evidence from emerging economies. Structural Change and Economic Dynamics 68, 204-223.
Lee, Y.H., Park, J., 2023. Middle-income country trap and total factor productivity growth. Pacific Economic Review pp. 1–16. 
M Molua. E and M Lambi C, 2007, The Economic Impact of Climate Change on Agriculture in Cameroon, Policy Research Working Paper 4364.
Malcolm, J.R., Markham, A., Neilson, R.P., Garaci, M., 2002. Estimated migration rates under scenarios of global climate change. Journal of Biogeography 29(7), 835-849.
Mojaverian, S.M., Ahmadi Kaiji, S., Aminravan, M., 2015. Application of the Ricardian approach to investigating the effect of climate change on agricultural land rent. Iranian Journal of Agricultural Economics and Development Research 46(3), 481-491. (In Persian)
Omotoso, A.B., Omotayo, A.O., 2024. The interplay between agriculture, greenhouse gases, and climate change in Sub-Saharan Africa. Regional Environmental Change 24(1), 1-12.
Shah, W. U. H., Lu, Y., Liu, J., Rehman, A., Yasmeen, R., 2024. The impact of climate change and production technology heterogeneity on China's agricultural total factor productivity and production efficiency. Science of The Total Environment 907, 168027.
Ouedraogo, M., Some, L., Dembele, Y., 2006, Economic Impact Assessment of Climate Change on Agriculture in Burkinafaso: A Ricardian Approach, CEEPA Discussion Paper, No. 24, Centre for Environmental Economics and Policy in Africa, University of Pretoria.
Rahmani, E., Liaghat, A., Khalili, A. 2010. Estimating barley yield in eastern azerbaijan using drought indices and climatic parameters by Artificial Neural Network (ANN). Iranian Journal of Soil and Water Research 39(1), 47-56. (In Persian)
Reilly J.M, Keith, O., Fuglie, K.O.,1998. Future yield growth in field crops: what evidence exists? Soil and Tillage Research 47, 275-290.
Rezaee, A., Yaqubi, M., 2023. Investigation of the economic impacts of climate change on saffron land rent in Khorasan Razavi Province. Saffron Agronomy And Technology 11(2), 209-224. (In Persian)
Rezaee, A., Shirani Bidabadi, F., & Bahadoran, F., 2022. Climate change consequences on rain-fed wheat farming and its relationship with rent in Iran. Agricultural Economics Research 13(4), 149-159. (In Persian)
Shayanmehr, S., shahnoushi, N., Sabouhi Sabouni, M., & Rastegari, S. 2021. Climate change and its consequences on food security in Khorasan region. Agricultural Economics 15(4), 95-128. (In Persian)
Thi Lan Huong, N., Shun Bo, Y., Fahad, S., 2018. Economic impact of climate change on agriculture using Ricardian approach: A case of northwest Vietnam 18(4), 449-457.
Tokunaga S., Okiyama M., Ikegawa M., 2015. Dynamic panel data analysis of the impacts of climate change on agricultural production in japan. Japan Agricultural Research Quarterly 49(2), 149-157.
Van Passel, S., Massetti, E., Mendelson, R., 2012. A ricardian analysis of the impact of climate change on european agriculture. Environmental and Resource Economics 67(4), 725-760.
Wang, J., Mendelson, R., Dinar, A., Huang, J., Rozelle, S., Zhang, L. 2009. The impact of climate change on China’s agriculture. Agricultural Economics 40(3), 323-337.
Journal of Natural Environment
Volume 77, Issue 1
May 2024
Pages 123-132