Weather shocks, adaptation and agricultural TFP: A cross-region comparison of Australian Broadacre farms

Yu Sheng; Shiji Zhao; Sansi Yang

doi:10.1016/j.eneco.2021.105417

Weather shocks, adaptation and agricultural TFP: A cross-region comparison of Australian Broadacre farms

Yu Sheng, Shiji Zhao, Sansi Yang^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

12 Citations (Scopus)

Abstract

This paper investigates the dynamic impact of weather shocks on agricultural total factor productivity (TFP) of Australian broadacre industry, by applying a Panel Error Correction model (PECM) to the data of 32 agricultural regions over the period 1978–2013. In response to weather shocks, farmers take adaptive actions by adjusting their output and input structures to alleviate weather-induced loss in productivity. Moreover, farmers in regions with the least favorable climate condition are found to adapt to weather shocks more rapidly than those in regions with more favorable climate condition. Our finding highlights the importance of public policies to encourage farmers to improve adaptive capacities in the events of weather shock.

Original language	English
Article number	105417
Journal	Energy Economics
Volume	101
DOIs	https://doi.org/10.1016/j.eneco.2021.105417
Publication status	Published - Sept 2021
Externally published	Yes

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title = "Weather shocks, adaptation and agricultural TFP: A cross-region comparison of Australian Broadacre farms",

abstract = "This paper investigates the dynamic impact of weather shocks on agricultural total factor productivity (TFP) of Australian broadacre industry, by applying a Panel Error Correction model (PECM) to the data of 32 agricultural regions over the period 1978–2013. In response to weather shocks, farmers take adaptive actions by adjusting their output and input structures to alleviate weather-induced loss in productivity. Moreover, farmers in regions with the least favorable climate condition are found to adapt to weather shocks more rapidly than those in regions with more favorable climate condition. Our finding highlights the importance of public policies to encourage farmers to improve adaptive capacities in the events of weather shock.",

keywords = "Adaptive capacity, Agricultural TFP, Cross-region comparison, Weather shocks",

author = "Yu Sheng and Shiji Zhao and Sansi Yang",

note = "Publisher Copyright: {\textcopyright} 2021 Elsevier B.V.",

year = "2021",

month = sep,

doi = "10.1016/j.eneco.2021.105417",

language = "English",

volume = "101",

journal = "Energy Economics",

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T2 - A cross-region comparison of Australian Broadacre farms

AU - Sheng, Yu

AU - Zhao, Shiji

AU - Yang, Sansi

PY - 2021/9

Y1 - 2021/9

N2 - This paper investigates the dynamic impact of weather shocks on agricultural total factor productivity (TFP) of Australian broadacre industry, by applying a Panel Error Correction model (PECM) to the data of 32 agricultural regions over the period 1978–2013. In response to weather shocks, farmers take adaptive actions by adjusting their output and input structures to alleviate weather-induced loss in productivity. Moreover, farmers in regions with the least favorable climate condition are found to adapt to weather shocks more rapidly than those in regions with more favorable climate condition. Our finding highlights the importance of public policies to encourage farmers to improve adaptive capacities in the events of weather shock.

AB - This paper investigates the dynamic impact of weather shocks on agricultural total factor productivity (TFP) of Australian broadacre industry, by applying a Panel Error Correction model (PECM) to the data of 32 agricultural regions over the period 1978–2013. In response to weather shocks, farmers take adaptive actions by adjusting their output and input structures to alleviate weather-induced loss in productivity. Moreover, farmers in regions with the least favorable climate condition are found to adapt to weather shocks more rapidly than those in regions with more favorable climate condition. Our finding highlights the importance of public policies to encourage farmers to improve adaptive capacities in the events of weather shock.

KW - Adaptive capacity

KW - Agricultural TFP

KW - Cross-region comparison

KW - Weather shocks

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DO - 10.1016/j.eneco.2021.105417

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SN - 0140-9883

VL - 101

JO - Energy Economics

JF - Energy Economics

M1 - 105417

ER -

Weather shocks, adaptation and agricultural TFP: A cross-region comparison of Australian Broadacre farms

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