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Economic impact of climate change in European agriculture

22 May 2017

A new study has estimated how changes to climate might affect the value of European farmland.

Based on data for over 41,000 farms, the results suggest that their economic value could drop by up to 32%, depending on the climate scenario considered.

Farms in southern Europe are particularly sensitive to climate change and could suffer value losses of up to 9% per 1oC rise. The researcher say policy, on water and land use, for example, will be crucial to help farmers adapt to climate change and mitigate economic losses.

Van Passel, S., Massett, E & Mendelsohn, R (2016). A Ricardian Analysis of the Impact of Climate Change on European Agriculture. Environmental and Resource Economics. DOI 10.1007/s10640-016-0001-y

 

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