TY - JOUR
AU - Nordhaus, William
AB -  By ROBERT MENDELSOHN In Mendelsohn et al. (1994), hereafter MNS, we suggested a “Ricardian” approach to measuring the impact of global warming on agriculture. Under this approach, we first estimated the impact of climate on agricultural land values and then predicted the impacts of climate change on agriculture using these estimated relationships. John Quiggin and John K. Horowitz (1999), hereafter Q&H, raise three concerns about the Ricardian method. First, they note that it is important to measure damages across time and not rely strictly on comparative statics since the warming is predicted to move gradually over a very long time period. Second, they note that one of the costs of adapting to climate change is adjustment costs; these are not included in our estimates and could be important. Third, they argue that some of the second-order seasonal terms in the estimates are positive, not negative as expected, which in their view raises questions about interpolation of the results outside the range of the data. 1. The fact that damages from a stock externality such as those due to greenhouse gases should be modeled using a dynamic analysis is surely valid; we have emphasized that point repeatedly in our 
TI - The Impact of Global Warming on Agriculture: A Ricardian Analysis: Reply
JF - American Economic Review
DO - 10.1257/aer.89.4.1046
DA - 1999-09-01
UR - https://www.deepdyve.com/lp/american-economic-association/the-impact-of-global-warming-on-agriculture-a-ricardian-analysis-reply-u4ta0JqI2b
SP - 1046
EP - 1048
VL - 89
IS - 4
DP - DeepDyve
ER -