Economic Analysis of the Impact of Climate Change in Agriculture in Russia

National and regional aspects

Fecha de publicación: 1 Abril 2013
Autor/a: Georgiy Safonov, Director of Environmental and Natural Resource Economics, National Research University Higher School of Economics; Yulia Safonova, Member of the research team, Environmental and Natural Resource Economics, National Research University Hig

Climate change is already having a negative impact on agricultural production in Russia, especially grain production, the sector most dependent on weather and climate factors.

In 2010 and 2012, drought caused a significant drop in grain production, which led to an increase in grain prices. The total losses resulting from poor harvests exceeded RUB 300 billion (~$9 billion) in those years and the cost of these losses was pushed on to consumers who had to pay significantly higher bread prices – meaning that the most vulnerable populations were hardest hit.

This report presents an economic evaluation of the impact of climate change on crop production at the national level and a long-term economic evaluation of the losses, profits, and risks for agriculture throughout Russia. It analyzes the situation in the two major agricultural regions, where the negative effects of climate change are especially pronounced, and examines the prospects for adapting Russia’s agriculture to climate change.

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