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Climate Change Adaptation Policy and Expansion of Irrigated Agriculture in Georgia, U.S.

Asian Journal of Innovation and Policy / Asian Journal of Innovation and Policy, (P)2287-1608; (E)2287-1616
2021, v.10 no.1, pp.68-89
https://doi.org/10.7545/ajip.2021.10.1.068
ChangKeun Park

Abstract

The expansion of irrigated agricultural production can be appropriate for the southeast region in the U.S. as a climate change adaptation strategy. This study investigated the effect of supplemental development of irrigated agriculture on the regional economy by applying the supply side Georgia multiregional input-output (MRIO) model. For the analysis, 100% conversion of non-irrigated cultivable acreage into irrigated acreage for cotton, peanuts, corn, and soybeans in 42 counties of southwest Georgia is assumed. With this assumption, the difference in total net returns of production between the non-irrigation and irrigation method is calculated as input data of the Georgia MRIO model. Based on the information of a 95% confidence interval for each crop’s average price, the lower and upper bounds of estimated results are also presented. The total impact of cotton production was $60 million with the range of $35 million to $85 million: The total impact of peanuts, soybeans, corn was $10.2 million (the range of $3.28 million to $23.7 million), $6.6 million (the range of $3.1 million to $10.2 million), $1.2 million (the range of -$6 million to $8.5 million), respectively.

keywords
Climate change adaptation, economic impact, irrigated agriculture, supply-driven MRIO model, total net returns

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Asian Journal of Innovation and Policy