An analysis of public adaptation to climate change using agricultural water schemes in South America

• Published in: Ecological economics 2011-02, Vol.70 (4), p.825-834
• Main Author: Seo, S. Niggol
• Format: Article
• Language: English
• Subjects: Adaptation to change; Agricultural production; Climate; Climate change; Climate change Public adaptation Irrigation South America; Farms; Global warming; Irrigation; Land values; Public adaptation; Public goods; Public services; Resource scarcity; South America; Water; Water conservation; Water management
• ISSN: 0921-8009; 1873-6106
• DOI: 10.1016/j.ecolecon.2010.12.004

This paper provides an analysis of public adaptation to climate change using agricultural water schemes in South American farms. Unlike other studies of adaptation, this paper examines the differences between private irrigation and public irrigation schemes based on around 1400 farm surveys collected across seven countries in South America which recorded detailed water schemes. We analyze the choice of water schemes in the first stage and the land values for each scheme in the second stage. We find that public irrigations do not increase in response to a warmer climate, but private irrigations do. On the other hand, we find that public irrigation schemes are provided primarily as a response to water scarcity. Moreover, we find that private irrigations are taken gradually while public irrigations are provided as a lump sum, resulting in either too much or too little provision. Therefore, public adaptations to climate change will likely involve two inefficiencies. No provision of irrigation in a hotter climate may result from a lack of knowledge. Overprovision of irrigation in dry zones may result from a lump-sum provision of a public good. ► This paper provides an analysis of public adaptation to climate change in South America. ► Three water schemes are examined: privately irrigated, publicly irrigated, and rainfed. ► We analyze irrigation choices using mixed logit models and conditional land values. ► Farmers adopt irrigation privately when climate gets hotter, but not a public scheme. ► Public irrigation is provided to areas with water scarcity.