The Role of Nonfarm Influences in Ricardian Estimates of Climate Change Impacts on US Agriculture

The Ricardian approach is a popular hedonic method for analyzing climate change impacts on agriculture. The approach typically relies on a cross‐sectional regression of farmland asset prices on fixed climate variables, making it particularly vulnerable to omitted variables. I conduct a long‐spanning Ricardian analysis of farmland prices in the eastern United States (1950–2012) and find a convergence of evidence indicating that large estimates of...