Abstract

A rapid change in climate patterns potentially driven by global warming is considered to be greatest threats to agriculture. However, little is known about how the change in climate concretely affects agricultural production especially in Nepal with respect to seasons and regions of different altitudes. To examine this issue, we seek to empirically identify the impact of climatic variation on agricultural yield and its variability by utilizing the data of rice, wheat and climate variables in the central region of Nepal. The main focus is on whether the impacts vary across seasons, altitudes and the types of crops. For this purpose, we employ a stochastic production function approach by controlling a novel set of season-wise climatic and geographical variables. The result shows that an increase in the variance of both temperature and rainfall has adverse effects on crop productions in general. On the other hand, a change in the mean levels of the temperature and rainfall induces heterogeneous impacts, which can be considered beneficial, harmful or negligible, depending on the altitudes and the kinds of crops. These results imply that adaptation strategies must be tailor-made in Nepalese agriculture, considering growing seasons, altitudes and the types of crops.

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