Economic Effects of Temperatures on Household Electricity Consumption: A review of the empirical literature

Abstract

This study examines how farmer's ability and farm technology influence the adaptation capacity of farm production to extreme weather. Specifically, we investigate how farmer's age and irrigation use reduce the negative effects of extreme temperatures on crop yields. We conducted the empirical analysis by introducing farmer's age and irrigation use in estimating the temperature effects on corn yields in US. We find that both of them are significant factors that mitigate the negative effects of extreme temperatures. The employment of irrigation practices leads to a reduction in yield loss resulting from extreme temperatures. Age nonlinearly influences farmer's adaptation capacity to reduce the negative temperature effect: Capacity generally increases and then decreases with age. Interestingly, age effects are less pronounced in irrigated areas, where the likelihood of exposure to climate risk is comparably low. This suggests that human capital plays a critical role in introducing adaptation measures in areas at high risk of exposure to extreme temperatures.research repor