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This study estimates the impacts of yearly mean temperature and precipitation on agricultural income and productivity in Korea. The data used are panels consisting of 9 provinces from 2003 to 2022, which are constructed using the farm household survey data in Korea. The impacts of mean temperature are the most evident when agricultural income and productivity are normalized with respect to hours of work. Similar results are obtained when agricultural income and productivity per unit capital are considered. However, slightly different results are obtained when agricultural income and productivity per unit area are considered. Overall, the marginal effect of mean temperature depends on the level of temperature and it switches sign from positive to negative around 13℃. Furthermore, when the marginal effect is allowed to differ across provinces, it is positive in the central provinces where there are relatively low mean temperatures while negative in the southern provinces where there are relatively high mean temperatures. |
