October 06, 2016

Paper on degree days forthcoming in Energy Economics

How Well Do Degree Days over the Growing Season Capture the Effect of Climate on Farmland Values?

Emanuele Massetti, Robert Mendelsohn, Shun Chonabayashi


Farmland values have traditionally been valued using seasonal temperature and precipitation but degree days over the growing season offers a more compact form. We find that degree days and daily temperature are interchangeable over the growing season. However, the impact of degree days in spring and summer are quite different. Climate effects outside the growing season are also significant. Cross sectional evidence suggests seasonal temperature and precipitation are very important whereas temperature extremes have relatively small effects.