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Importing inputs for climate change mitigation: The case of agricultural productivity
Author(s) -
GarciaVerdu Rodrigo,
MeyerCirkel Alexis,
Sasahara Akira,
Weisfeld Hans
Publication year - 2022
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/roie.12551
Subject(s) - total factor productivity , economics , agriculture , productivity , agricultural economics , climate change , agricultural productivity , natural resource economics , environmental science , econometrics , macroeconomics , geography , ecology , archaeology , biology
This paper investigates the effects of temperature on agricultural TFP growth rates during the period 1992–2015. We argue that higher temperatures impede TFP growth, particularly in low‐income countries (LICs) using less imported inputs. Our estimates imply that a 1°C rise in annual average temperatures reduces TFP growth rates by 5.2 percentage points in the LICs in question. However, LICs using greater amounts of imported inputs are less affected by temperatures, suggesting a new source of gains from imported inputs mitigating the adverse effects of rising temperatures.