ESTIMATION OF CLIMATE CHANGE IMPACT ON CROP PROFITABILITY IN KARNATAKA
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Authors
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SRINIVASA SASDHAR PONNALURU* and ARPITA PANDEY
Department of Economics, Vijayanagara Sri Krishnadevaraya University, Bellary - 583 105
Keywords:
Climate Change, Crop Profitability, Arellano Bond Estimator, Spatial Impacts, Dynamic Panel Regression.Abstract
Climate change can significantly impact crop profitability andsocio-economicstatus of farmers.
Quantification of these climatic impacts is of vital importance for agrarian states such as Karnataka.
This study estimates the function for crop profits with climatic variables as explanatory variables
using Arellano Bond Dynamic Panel Estimator under the Generalized Method of Moments framework.
The data set utilized in the study is the district level panel spanning over 29 years from 1990 to
2018.The results indicated a decrease in profits due to an increase in average annual temperature.
Impacts of past periods’profits on the current periodare positive and decreasing over time, indicating
a convergent time path. Climate change impacts are heterogeneous across the space and are more
pronounced in the northern districts compared to southern districts of the Karnataka State.
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