Potential Benefits To Agriculture of Augmenting Precipitation
AbstractThis paper discusses ongoing research intended to develop a clearer understanding of the impact of weather modification on a portion of the agricultural sector of the U.S. economy, the feed-livestock complex. The research framework models the interactive effects of changing weather, technology, government policies, and demand on market prices. Supply and demand relations may be estimated and solved within the context of a simultaneous equation econometric model. Within the model, crop yield response relations must be estimated at an appropriate level of geographical aggregation to ensure uniform measurement of weather modification effects. An econometric technique, based on the use of binary variables, is proposed as means for selecting geographical aggregates. The transmission of the "weather effect" to the agricultural sector is accomplished in the supply-demand model. Benefits accruing to various market participants may then be identified under alternative scenarios of weather modification.
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