Auffhammer et al. 10.1073/pnas.0609584104.
|
Function |
Variable |
Description |
|
Dependent variables |
||
|
Production |
Output |
Wet-season rough rice harvest ('000 metric tons) |
|
Area demand |
Area harvested |
Wet-season area of rice fields harvested ('000 hectares) |
|
Explanatory variables |
||
|
Both |
Rainfall: March-May June-September October-November |
Cumulative rainfall during indicated period (mm): area-weighted average of meteorological subdivisions in the state |
|
Both |
Minimum temperature: June-September October-November |
Monthly minimum temperature (°C): mean of gridded temperatures for state |
|
Both |
Solar radiation: October-November December |
Monthly short-wave radiation at the earth's surface (W×m-2): mean of solar radiation stations in northern and southern regions of India |
|
Production |
Area harvested |
(defined above) |
|
Production |
Percent HYV |
Percent of rice area planted to high-yielding varieties |
|
Production |
Percent irrigated |
Percent of rice area irrigated |
|
Production |
Fertilizer |
N-P-K fertilizer applied (tons) for all food crops, pro-rated using rice's share of crop area |
|
Production |
Labor |
Number of cultivators and agricultural labors, interpolated from 1960-2000 Censuses and pro-rated using rice's share of crop area |
|
Area demand |
Area harvested (lagged) |
(defined above) |
|
Area demand |
Price of rice (lagged) |
Farmgate harvest price of rough rice (rupees/ton), deflated using rural CPI (1973 base year) |
|
Area demand |
Price of jowar |
Government support price of jowar (rupees/ton), deflated using rural CPI (1973 base year) |
|
Area demand |
Price of fertilizer |
Price of K fertilizer (rupees/ton), deflated using rural agricultural CPI |
|
Area demand |
Price of labor |
Agricultural wage (rupees per day), deflated using rural agricultural CPI (1973 base year) |
All variables are annual and are measured at the state level except solar radiation (two regions, north and south) and rice and jowar prices (same for all states).
|
Explanatory variables |
I |
II |
III |
|
Area harvested |
0.913 |
0.908 |
1.161 |
|
(0.122)*** |
(0.097)*** |
(0.098)*** |
|
|
Percent HYV |
0.087 |
0.049 |
0.043 |
|
(0.039)** |
(0.034) |
(0.035) |
|
|
Percent irrigated |
0.285 |
0.273 |
0.269 |
|
(0.052)*** |
(0.048)*** |
(0.054)*** |
|
|
Fertilizer |
0.123 |
0.093 |
0.106 |
|
(0.054)** |
(0.033)*** |
(0.080) |
|
|
Labor |
0.359 |
0.373 |
0.301 |
|
(0.127)*** |
(0.116)*** |
(0.347) |
|
|
Rainfall: Mar-May |
-0.027 |
-0.007 |
-0.010 |
|
(0.019) |
(0.017) |
(0.018) |
|
|
Rainfall: Jun-Sep |
0.317 |
0.447 |
0.437 |
|
(0.082)*** |
(0.090)*** |
(0.062)*** |
|
|
Rainfall: Oct-Nov |
0.013 |
0.016 |
0.014 |
|
(0.016) |
(0.013) |
(0.013) |
|
|
Minimum temperature: Jun-Sep |
0.662 |
0.403 |
0.593 |
|
(0.695) |
(0.590) |
(0.560) |
|
|
Minimum temperature: Oct-Nov |
-0.865 |
-0.664 |
-0.602 |
|
(0.345)** |
(0.270)** |
(0.230)*** |
|
|
Solar radiation: Oct-Nov |
-0.048 |
-0.055 |
-0.047 |
|
(0.428) |
(0.217) |
(0.228) |
|
|
Solar radiation: Dec |
-0.085 |
0.454 |
0.295 |
|
(0.478) |
(0.232)* |
(0.240) |
|
|
Constant |
-8.214 |
-12.049 |
-12.826 |
|
(4.830)* |
(3.589)*** |
(5.846)** |
|
|
Fixed effects for states? |
Yes |
Yes |
Yes |
|
Fixed effects for years? |
Yes |
No |
No |
|
R2 |
0.801 |
0.750 |
0.729 |
|
Observations |
218 |
218 |
218 |
Sample consists of annual observations during 1972-98 for 9 Indian states (panel data). All variables are in natural logarithms. Dependent variable is wet-season rice harvest. All models include fixed effects for states, and model I also includes fixed effects for years. Models I and II correct for endogeneity of area harvested; model III corrects for endogeneity of area harvested, fertilizer, and labor. Robust standard errors are shown in parentheses below the coefficient estimates; * = significant at 10%, ** significant at 5%, *** significant at 1%. Results for model I provide the basis for the analysis reported in the text.
|
Explanatory variables |
IV |
V |
|
Area harvested (lagged) |
0.964 |
0.945 |
|
(0.029)*** |
(0.033)*** |
|
|
Price of labor |
-0.044 |
-0.028 |
|
(0.035) |
(0.025) |
|
|
Price of fertilizer |
-0.072 |
-0.022 |
|
(0.052) |
(0.015) |
|
|
Price of rice (lagged) |
0.055 |
|
|
(0.034) |
||
|
Price of jowar |
-0.034 |
|
|
(0.046) |
||
|
Rainfall: Mar-May |
0.011 |
0.012 |
|
(0.006)* |
(0.005)** |
|
|
Rainfall: Jun-Sep |
0.074 |
0.099 |
|
(0.021)*** |
(0.022)*** |
|
|
Rainfall: Oct-Nov |
-0.001 |
0.0004 |
|
(0.004) |
(0.003) |
|
|
Minimum temperature: Jun-Sep |
0.135 |
0.002 |
|
(0.210) |
(0.202) |
|
|
Minimum temperature: Oct - Nov |
-0.059 |
-0.057 |
|
(0.097) |
(0.069) |
|
|
Solar radiation: Oct-Nov |
0.005 |
-0.060 |
|
(0.192) |
(0.089) |
|
|
Solar radiation: Dec |
0.151 |
0.161 |
|
(0.135) |
(0.075)** |
|
|
Constant |
-1.486 |
-1.094 |
|
(1.749) |
(1.325) |
|
|
Fixed effects for states? |
Yes |
Yes |
|
Fixed effects for years? |
Yes |
No |
|
R2 |
0.891 |
0.859 |
|
Observations |
243 |
243 |
Sample consists of annual observations during 1972-98 for 9 Indian states (panel data). All variabes are in natural logarithms. Dependent variable is area of rice harvested during the wet season. Both models include fixed effects for states, and model IV also includes fixed effects for years. Robust standard errors are shown in parentheses below the coefficient estimates; * = significant at 10%, ** significant at 5%, *** significant at 1%. Results for model IV provide the basis for the analysis reported in the text.
|
Variable |
Scenario |
Mean |
Standard deviation |
H0: mean difference of variables = 0 |
|
Rainfall: June-September |
ABC_1998; Run 1 |
567 mm |
53.8 mm |
Reject (P = 0.002) |
|
GHGs+SO4_1998 |
597 mm |
28.2 mm |
||
|
Minimum temperature: October-November |
ABC_1998; Run 1 |
18.4°C |
0.584°C |
Fail to reject (P = 0.326) |
|
GHGs+SO4_1998 |
18.5°C |
0.337°C |
Variables were constructed by averaging the original PCM output across grid cells corresponding to the 9 states in our sample and, in the case of the GHG+SO4_1998 scenario, across multiple runs. The sample period was 1961-98. Difference tests were conducted using paired t tests. The mean of observed October-November minimum temperature during 1930-60 was 18.0°C.
Regression Models. We specified the production function as
where i denotes state, t denotes year, yit is rice harvest, ait is area harvested, Xit is a set of variables for other agricultural inputs (labor, fertilizer, high-yielding varieties, irrigation), Zit is a set of climate variables (rainfall, radiation, temperature), b1, b, and g are parameters, and eit is the error term. ci and qt are fixed effects for states and years, respectively. All variables are in natural logarithms except the fixed effects. Table 3 provides detail on the variables. Data sources were as follows: rice harvest and area harvested, official statistics in the online database, www.indiastat.com; labor inputs, the Census of India (Census Commissioner, Office of the Registrar General, New Delhi, various years); fertilizer inputs, the Fertiliser Statistics Yearbook (Fertiliser Association of India, New Delhi, various years); high-yielding varieties, and irrigation, the International Rice Research Institute's online database, World Rice Statistics (http://irri.org/science/ricestat/); rainfall, the IITM Indian regional/subdivisional monthly rainfall data set (Indian Institute of Tropical Meteorology, Pune, www.tropmet.res.in/); radiation, the database described in Gilgen, H. & Ohmura, A. (1999) Bull. Am. Meteorol. Soc. 80, 831-850; and temperature, the database described in Mitchell, T. D. & Jones, P. D. (2005) Int. J. Climatol. 25, 693-712.
We specified the input demand function for area harvested as
where ait-1is area harvested during the previous year, W is a set of exogenous economic variables (inflation-adjusted prices of agricultural outputs and inputs) (1, 4, 8), Z is the same set of climate variables as in the production function, d1, d, and j are parameters, and mit is the error term.
Regression coefficients on the climate variables were shown in Table 1. Other regression results are shown in Tables 4 and 5. Coefficients on the nonclimate variables generally had the expected signs, were statistically significant (P < 0.05), and were comparable to estimates reported by other agricultural production studies. Correcting the production function for the potential endogeneity of labor and fertilizer in addition to area harvested did not change the coefficient estimates on the area and climate variables much. The yearly fixed effects in the production function (not shown) trended downward, suggesting that they proxied for factors associated with the deceleration of harvest growth that we did not model explicitly (e.g., soil degradation). Trial regressions not shown here, but available upon request, indicated that: (i) unlike lagged area, lagged yield did not have a significant impact on area harvested, which indicates that lagged area captures the most important dynamic effects in the area demand function; and (ii) dropping the fertilizer price variable, which was available only from 1972 onward, and estimating the two equations for 1966-98 instead of 1972-98 had little impact on the predicted impacts of reducing ABCs and GHGs.