This paper develops a spatial rural economy model of adaptation to climate change that accounts for a multitude of rural enterprises across a diversity of ecosystems in South America using household surveys. We model adoptions of crops, livestock, and forests. Both specialized and diversified enterprises are modelled. This paper finds that livestock, forests, and a diversification into crops, livestock, and forests are key adaptation strategies. Under the UKMO (United Kingdom Meteorological Office) scenario, a livestock-only enterprise would expand by 4 per cent, a crops-livestock-forests by 3 per cent, and a forests-only by 3 per cent. Adaptation behaviours are closely tied with ecosystem changes under global warming. A livestock-only would increase especially in the grasslands. A crops-livestock-forests enterprise expands into xeromorphic forests. A crops-livestock expands in Andean grasslands and tall grasslands. A forests-only expands in the coasts and woody zones. A crops-only enterprise decreases across South America.
Seo, SN
Adaptation behaviours across ecosystems under global warming: A spatial micro-econometric model of the rural economy in South America
Papers In Regional Science