An Economic Analysis of Global Impacts, Adaptation and Distributional Effects
New Horizons in Environmental Economics series
The structural Ricardian modeling approach discussed in Chapter 6 has been applied to choices in both South America and Africa. In Africa, the technique has been used to examine the choice of irrigation, crops and livestock. In South America, the method has been used to examine the choice of farm type (whether to irrigate and whether to grow crops and/ or livestock). The African data is based on a sample of over 9000 farmers collected in 11 countries in Africa: Burkina Faso, Cameroon, Egypt, Ethiopia, Ghana, Kenya, Niger, Senegal, South Africa, Zambia and Zimbabwe (Dinar et al., 2008). Data includes information on net revenues from crops and livestock as well as choices concerning crop species, irrigation and livestock species. Data also includes substantial information about farmers including education, age, household size and gender. Temperature data from satellites (Weng and Grody, 1998) and precipitation data from weather stations was matched to each farm (World Bank, 2003). Soil data from the FAO was then matched to each farm (FAO, 2003). Finally, water flow data from hydrological modeling was added (IWMI, 2003). The South America data is based on a sample of over 2000 farmers collected across seven countries in South America: Argentina, Brazil, Chile, Columbia, Ecuador, Uruguay and Venezuela (Mendelsohn et al., 2007). As with the African study, the South American study includes extensive economic data as well as climate and soil information. Data was not available concerning the hydrology. The South American study, however, has information about land values and more...
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