Potential climate effects on Japanese rice productivity

Adaptation to climate change has become an important policy question in recent years. Agriculture is the economic activity most sensitive to climate change. We evaluate the dynamic effects of productivity change and individual efforts to adapt to climate change. Adaptation actions in agriculture are evaluated to determine how the climate affects production efficiency. In this paper, we use the bi-directional distance function method to measure Japanese rice production loss due to climate. We find that 1) accumulated precipitation has the greatest effect on rice production efficiency and 2) the climate effect on rice production efficiency decreases over time. Our results empirically support the benefit of an adaptation approach