Environmental Linkages - Wolfram Schlenker Columbia University - Center for Environmental Economics and Policy (CEEP)

PowerPoint Presentation Environmental Linkages Wolfram Schlenker Columbia University - Center for Environmental Economics and Policy (CEEP) National Bureau of Economic Research (NBER) May 25, 2021 Federal Reserve Bank of Kansas City: 2021 Agricultural Symposium The Roots of Agricultural Productivity Growth Productivity: US Corn Yields 1866-2019 • Phase 1 (1866-1940) • Fairly constant average yield. [...] (Nature Climate Change, 2021) 8 Climate Effect on Total Factor Productivity • So far: focus on output • Yields • Climate change might impact required input use as well • Total factor productivity • Output minus input • TFP growth since 1961 linked to weather • Ortiz-Bobea et al. [...] (NCC, 2021) • Observed climate change lowered TFP • Effect varies spatially • Hotter areas more impacted 9 Going Forward • Climate change • Four basic staple commodities (corn, wheat, rice and soybeans) • 75% of calories that humans consume, US market share 25% • Extreme heat will rise and lead to slowing of productivity growth • So far increase in extreme temperature has been limited • But local.