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Climate 2018, 6(2), 32; https://doi.org/10.3390/cli6020032

The Effects of Changing Climate and Market Conditions on Crop Yield and Acreage Allocation in Nepal

Department of Agricultural Economics and Agricultural Business, New Mexico State University, 1780 E University Ave, Las Cruces, NM 88003, USA
Received: 27 March 2018 / Revised: 12 April 2018 / Accepted: 20 April 2018 / Published: 26 April 2018
(This article belongs to the Special Issue Social-Ecological Systems, Climate and Global Change Impacts)
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Abstract

This study examines the impact of changing climate and product market conditions on crop yield and land allocations in Nepal. Zellner’s seemingly unrelated regression approach is used to estimate the acreage and yield functions. The potential impact of price endogeneity on estimated parameters is corrected using an instrumental variable method. The results show that farm input prices and output prices play a crucial role in determining acreage allocation. While the variation in daily temperature during planting season affects acreage allocations for all crops except wheat, the total precipitation is critical for upland crops, particularly for millet. Literacy rate and the number of rainy days significantly affect yield for most crops. Moreover, the rising winter warming is enhancing wheat and potato yields. The results also show that a ten percent decrease in the number of rainy days during the growing season is likely to reduce yields for rice, maize, and wheat by 4.8, 1.7, and 0.8 percent, respectively. View Full-Text
Keywords: socioeconomic conditions; market prices; crop yield; land allocation; climate change socioeconomic conditions; market prices; crop yield; land allocation; climate change
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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Acharya, R.N. The Effects of Changing Climate and Market Conditions on Crop Yield and Acreage Allocation in Nepal. Climate 2018, 6, 32.

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