The economic relevance of climate variables in agriculture: The case of Spain

Abstract

We estimate the impact of the different climate variables on the value of Spanish farmland. We distinguish between irrigated and non-irrigated lands and use data on temperature, precipitations, physical and socioeconomic characteristics to measure these effects on farm prices and in the number of hectares of farmland. We conclude presenting the main results of our analysis, region by region, and examining the policies that could be more effective to prevent undesired effects.