Climate change and adaptation in agriculture: Evidence from US cropping patterns

Understanding how a changing climate alters regional comparative advantage is crucial for evaluating the economic impacts of climate change. I exploit temporal variation in decades-long averages of weather and estimate crop acreage elasticities with respect to climate change in the United States. I find substantial climate change adaptation through acreage adjustments in US agriculture. Climate change explains about 10-35% of the observed US corn and soybean expansion over the past 30 years, and climate-driven crop substitution has played an important role. The acreage response is heterogeneous across major and minor producing areas and across dryland and irrigated counties. (C) 2020 Elsevier Inc. All rights reserved.