A Review of the Impact of Extreme Weather on Agricultural Economics

Yiyao Zhang

doi:10.62051/ijsspa.v4n2.38

Authors

Yiyao Zhang

DOI:

https://doi.org/10.62051/ijsspa.v4n2.38

Keywords:

Extreme Weather, Agricultural Yields, Economic Modeling

Abstract

This paper reviews the changes in weather extremes, the characteristics of their economic impact on agricultural yields and commonly used quantitative analysis methods. With global warming, the frequency and intensity of extreme weather such as extreme heat, drought, and rainfall has increased. Extreme dry heat mainly affects the growth cycle, flowering, and pollination stages of crops; and extreme precipitation mainly affects the oxygen supply to the root system of crops. Extreme events lead to volatility in food market prices through a variety of mechanisms, such as affecting agricultural production, altering the balance between supply and demand, triggering changes in market expectations and speculative behavior, and prompting government policy responses. Extreme weather events are considered external shocks and are incorporated into various economic models to quantitatively assess their economic impact. The models still suffer from uncertainty in model parameters due to data related to extreme weather and market prices.

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