2018
DOI: 10.1111/agec.12447
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Economic impacts of El Niño southern oscillation: evidence from the Colombian coffee market

Abstract: We develop a structural econometric model to study the impacts of El Niño Southern Oscillation (ENSO) onColombian coffee production, exports and price. Our empirical specification is consistent with an economic model of the coffee market that, in the short-run, is characterized by a downward-sloping demand curve and by a vertical supply curve. This allows to study the effects of unpredictable innovations to ENSO on the Colombian coffee price, while controlling for shocks arising from both the supply and the de… Show more

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Cited by 37 publications
(20 citation statements)
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“…The IOD year that had the most significant impact on the decrease in production was the negative year (nIOD), with drops ranging from 1 to 15%. The results of the analysis of the impact of ENSO on production in this study were higher than those of Bastianin, Lanza and Manera (2018) stating that the effects of ENSO on a regional scale and a short period are around 2.2%. Meanwhile, on a long-term scale, it is approximately 8.3%.…”
Section: Events Yearscontrasting
confidence: 67%
“…The IOD year that had the most significant impact on the decrease in production was the negative year (nIOD), with drops ranging from 1 to 15%. The results of the analysis of the impact of ENSO on production in this study were higher than those of Bastianin, Lanza and Manera (2018) stating that the effects of ENSO on a regional scale and a short period are around 2.2%. Meanwhile, on a long-term scale, it is approximately 8.3%.…”
Section: Events Yearscontrasting
confidence: 67%
“…Fewer studies analysed reductions in coffee production as a result of climate change; such impacts were identified in Tanzania (Craparo et al 2015), Mexico (Estrada et al 2012;Gay et al 2006) and Brazil (Verhage et al 2017). Studies showing mixed results included positive outcomes of El Niño intra-decadal climate phases on coffee production and exports in Colombia (Bastianin et al 2018), increases in Robusta yield in India due to climate variability (Jayakumar et al 2017) and in Arabica yield in Brazil and Nicaragua owing to carbon fertilisation effect (Rahn et al 2018;Verhage et al 2017).…”
Section: Impacts Of Climate Variability and Change On Coffee Productionmentioning
confidence: 99%
“…For example, the increasing temperatures and sunlight and decreasing rainfalls prompt coffee plants growth which has a beneficial influence (Ubilava 2012a; Bastianin et al . 2018). As reported by Ubilava (2013), El Niño reduces wheat, corn and soybeans prices in the international market and those goods are imported by Colombia which could help reduce inflationary pressures during a strong El Niño .…”
Section: Enso and Its Relationship With The Colombian Economymentioning
confidence: 99%