Source: UNIVERSITY OF CALIFORNIA, DAVIS submitted to NRP
A COMPREHENSIVE ECONOMETRIC TOOLKIT FOR MODELING HETEROGENEITY IN CLIMATE CHANGE IMPACTS ON AGRICULTURE
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
ACTIVE
Funding Source
Reporting Frequency
Annual
Accession No.
1032455
Grant No.
2024-67023-42704
Cumulative Award Amt.
$650,000.00
Proposal No.
2023-09536
Multistate No.
(N/A)
Project Start Date
Aug 1, 2024
Project End Date
Jul 31, 2027
Grant Year
2024
Program Code
[A1651]- Agriculture Economics and Rural Communities: Environment
Recipient Organization
UNIVERSITY OF CALIFORNIA, DAVIS
410 MRAK HALL
DAVIS,CA 95616-8671
Performing Department
(N/A)
Non Technical Summary
This project supports the mission of the Agricultural Experiment Station by addressing the Hatch Act area(s) of: sustainable agriculture.Climate, pollution and other environmental factors pose great challenges to agriculture, food systems and their sustainability. Reliable quantification of the magnitude of those challenges and the uncertainty in this quantification is crucial to inform policy, private agents and the public. The increasing availability of high-frequency and high-resolution data has the potential to improve this quantification assuming reliable data-dependent methods are used for estimation and inference. The goal of this project is to develop a publicly accessible toolkit for climate impact assessments that incorporates state-of-the-art flexible, data-dependent estimation and inference methods to model heterogeneity in climate change impacts. We also plan to deploy our methodology to substantive empirical investigations of climate change impacts on agriculture, as well as to revisit prior studies employing our newly developed toolkit. From a more general perspective, given that other environmental questions in the context of agriculture, tend to rely on similar data settings and often employ similar tools, the proposed methodological work has the potential to have broader implications for sustainable agriculture beyond weather and climate change impact assessments.
Animal Health Component
60%
Research Effort Categories
Basic
40%
Applied
60%
Developmental
0%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6057310301040%
6050420301030%
6050430301030%
Goals / Objectives
This project seeks to provide a comprehensive toolkit to account for heterogeneity in climate change impact assessments. The specific goals of this project include:1. evaluate the bias of current methods in the climate change impacts literature2. propose robust, efficient and data-dependent estimators of the average response function3. provide tools for modeling observed and unobserved heterogeneity of damage functions4. support applied research and promote replicability by providing publicly accessible software for all proposed methods5. update estimates of climate damage functions for key agricultural outcomes, especially yield and acreage, to account for heterogeneity6. provide clear and accessible guidance for practitioners in academia, policy agencies and beyond on how to implement the proposed methods and best practices for implementation7. promote interdisciplinary collaboration by training agricultural and resource economists with depth in econometrics and data science tools as well as statisticians with expertise in climate economics and agriculture
Project Methods
The proposed theoretical work will draw on several econometrics literatures, including robust parametric and semiparametric inference, panel data methods and mixed-frequency time-series. The proposed methods will be assessed in systematic simulation studies as well as empirical applications at the agriculture-climate nexus. To ensure that the theoretical developments remain synergistic with the demands and objectives of applied researchers, we plan to present the proposed work at all stages of the project.

Progress 08/01/24 to 07/31/25

Outputs
Target Audience: Nothing Reported Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?The project has provided opportunities for a graduate student in Agricultural and Resource Economics at UC Davis to expand their knowledge of econometric methodology and its applications in agriculture. In addition, a graduate student in Statistics at Princeton has been engaging with econometric models popular in agricultural economics. The project has thereby promoted interdisciplinary collaboration by training agricultural and resource economists with depth in econometrics and data science tools as well as statisticians with expertise in agricultural economics. How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals?In the next reporting period, the goal is to complete a first draft of each work in progress and to present the results to communities of interest in order to incorporate the feedback into the analysis and inform next steps in this project.

Impacts
What was accomplished under these goals? As a starting point for the proposed work, a detailed review of the methods used in the applied literature was a necessary step. This was the major accomplishment of the first year. The synthesis of the existing approaches provided by this review is foundational for all major objectives of the project. This review includes a taxonomy of agricultural outcomes that have been examined as well as details of the empirical implementation in these various studies. In addition, datasets of key agricultural outcomes have been identified. In work in progress, we demonstrate the extent to which the fixed-effects and long-differences approach can capture short-run and long-run responses to temperature, respectively. Understanding the heterogeneity in these responses is fundamental to inform policy on how to best support farmers. In this work, we also compare these methods to competing approaches. Data has been collected for the main application, and preliminary analysis has been conducted. In other work in progress, we provide a formal framework to analyze popular estimators of nonlinearities in the response function between agricultural outcomes and temperature. Again, these nonlinearities are crucial to understand the resilience of U.S. farmers and the agricultural sector as a whole.

Publications