Climate and weather impacts on agriculture: the case of Brazil

Authors

  • Paula Carvalho Pereda Universidade de São Paulo. Faculdade de Economia, Administração e Contabilidade
  • Denisard Alves Universidade de São Paulo

DOI:

https://doi.org/10.11606/1980-5330/ea119584

Keywords:

translog profit function, climate change, climate and weather impacts, profit frontier, agricultural economics

Abstract

The world’s population will rise exponentially in the coming decades, increasing the demand for food and challenging the agricultural sector to ensure food security. Due to the importance of climate conditions for agriculture, this article analyzed two different hypotheses regarding climate impacts on agricultural markets in Brazil. First, farmers only observe the average climate conditions of their region when deciding the type and amount of crop or animal to grow or raise. Second, weather diversions from normal climate conditions cause farmers to deviate from optimal profits. Neither hypothesis was rejected by the data. The 2006 estimated loss from rainfall anomalies was 12.8 billion dollars (in 2014 values).

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Author Biographies

  • Paula Carvalho Pereda, Universidade de São Paulo. Faculdade de Economia, Administração e Contabilidade

    Professor of the Department of Economics of the University of São Paulo (USP) since 2014. Invited consultant of the Inter-American Bank of Development (IABD) in 2011 and 2013, and of the World Resources Institute in 2015. Former Full Professor at the School of Business of the Fundação Armando Alvares Penteado (2012-2013). Doctorate in Sciences from USP, with a Masters degree in Economic Theory from the same university. Main research areas: applied microeconomics, econometrics, and regional economics. Member of the Econometric Society, Brazilian Econometric Society, Regional Science Association, and the Regional and Urban Economics Lab at USP.

  • Denisard Alves, Universidade de São Paulo
    Full Professor of the Department of Economics of the University of São Paulo (USP) since 1967. PhD and post-doctorate in Economics from Yale University. Main research areas: econometrics, applied microeconomics, and global warming. Invited consultant of the Inter-American Bank of Development (IABD), World Bank, and several government agencies.

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Published

2018-09-01

Issue

Vol. 22 No. 3 (2018)

Section

Papers

How to Cite

Pereda, P. C., & Alves, D. (2018). Climate and weather impacts on agriculture: the case of Brazil. Economia Aplicada, 22(3), 5-26. https://doi.org/10.11606/1980-5330/ea119584