Economic impact of climate change on palm oil and paddy production in Malaysia

Climate change issues are debated and have heated up to the global stage. Malaysia like other developing countries faces critical issues on global warming which change local climate and threatens agriculture activities. Higher temperatures and erratic rainfall are the most widely climate change ind...

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Main Author:	Zainal, Zahid
Format:	Thesis
Language:	English
Published:	2013
Subjects:	Palm oil - Climatic factors - Malaysia Climatic changes - Economic aspects - Malaysia Rice - Climatic factors - Malaysia
Online Access:	http://psasir.upm.edu.my/id/eprint/42883/1/FP%202013%2015R.pdf
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id	my-upm-ir.42883
record_format	uketd_dc
spelling	my-upm-ir.428832016-06-27T08:21:07Z Economic impact of climate change on palm oil and paddy production in Malaysia 2013-07 Zainal, Zahid Climate change issues are debated and have heated up to the global stage. Malaysia like other developing countries faces critical issues on global warming which change local climate and threatens agriculture activities. Higher temperatures and erratic rainfall are the most widely climate change indicators known to affect growth of crops. According to IPCC, global temperatures will increase by 1.5oC to 5.8oC by 2100 and challenge sustainability of agricultural sector in future. The purpose of this study was to investigate economic impact of climate change to oil palm and paddy production in Malaysia. It employed a modified Ricardian model to assess impact of climate change on crop productivity. The impact changes in temperature and rainfall for 31 years period (1980 to 2010) on palm oil and paddy production was successfully determined through time-series regression analysis based on annual crops production. Besides, the regression output result was interpreted in agronomic perspective. The PRECIS (Providing Regional Climates for Impacts Studies) Regional Climate Modeling System was applied to estimate potential impact on palm oil and paddy net revenue due to long-term changes in climate. The result shows that temperature and rainfall had significant negative impact to palm oil and paddy production. The total marginal increase of temperature and rainfall resulted in a loss (RM/ha) of about RM31.37, RM47.18 and RM35.92 for Peninsular, Sabah and Sarawak respectively. Meanwhile, the loss in paddy production in Malaysia as a whole is approximately amount to RM312.20. By projection using regional climate modeling system (PRECIS) the palm oil is predicted to lose an average amount of RM444.12, RM294.20, and RM105.62for Peninsular, Sabah and Sarawak respectively in year 2059. Moreover, paddy will record a loss to RM4583.10 in the same year. Therefore, it is recommended that adaptation and mitigation strategies are needed to minimize adverse effects of climate change on oil palm and paddy production. Palm oil - Climatic factors - Malaysia Climatic changes - Economic aspects - Malaysia Rice - Climatic factors - Malaysia 2013-07 Thesis http://psasir.upm.edu.my/id/eprint/42883/ http://psasir.upm.edu.my/id/eprint/42883/1/FP%202013%2015R.pdf application/pdf en public masters Universiti Putra Malaysia Palm oil - Climatic factors - Malaysia Climatic changes - Economic aspects - Malaysia Rice - Climatic factors - Malaysia
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
topic	Palm oil - Climatic factors - Malaysia Climatic changes - Economic aspects - Malaysia Rice - Climatic factors - Malaysia
spellingShingle	Palm oil - Climatic factors - Malaysia Climatic changes - Economic aspects - Malaysia Rice - Climatic factors - Malaysia Zainal, Zahid Economic impact of climate change on palm oil and paddy production in Malaysia
description	Climate change issues are debated and have heated up to the global stage. Malaysia like other developing countries faces critical issues on global warming which change local climate and threatens agriculture activities. Higher temperatures and erratic rainfall are the most widely climate change indicators known to affect growth of crops. According to IPCC, global temperatures will increase by 1.5oC to 5.8oC by 2100 and challenge sustainability of agricultural sector in future. The purpose of this study was to investigate economic impact of climate change to oil palm and paddy production in Malaysia. It employed a modified Ricardian model to assess impact of climate change on crop productivity. The impact changes in temperature and rainfall for 31 years period (1980 to 2010) on palm oil and paddy production was successfully determined through time-series regression analysis based on annual crops production. Besides, the regression output result was interpreted in agronomic perspective. The PRECIS (Providing Regional Climates for Impacts Studies) Regional Climate Modeling System was applied to estimate potential impact on palm oil and paddy net revenue due to long-term changes in climate. The result shows that temperature and rainfall had significant negative impact to palm oil and paddy production. The total marginal increase of temperature and rainfall resulted in a loss (RM/ha) of about RM31.37, RM47.18 and RM35.92 for Peninsular, Sabah and Sarawak respectively. Meanwhile, the loss in paddy production in Malaysia as a whole is approximately amount to RM312.20. By projection using regional climate modeling system (PRECIS) the palm oil is predicted to lose an average amount of RM444.12, RM294.20, and RM105.62for Peninsular, Sabah and Sarawak respectively in year 2059. Moreover, paddy will record a loss to RM4583.10 in the same year. Therefore, it is recommended that adaptation and mitigation strategies are needed to minimize adverse effects of climate change on oil palm and paddy production.
format	Thesis
qualification_level	Master's degree
author	Zainal, Zahid
author_facet	Zainal, Zahid
author_sort	Zainal, Zahid
title	Economic impact of climate change on palm oil and paddy production in Malaysia
title_short	Economic impact of climate change on palm oil and paddy production in Malaysia
title_full	Economic impact of climate change on palm oil and paddy production in Malaysia
title_fullStr	Economic impact of climate change on palm oil and paddy production in Malaysia
title_full_unstemmed	Economic impact of climate change on palm oil and paddy production in Malaysia
title_sort	economic impact of climate change on palm oil and paddy production in malaysia
granting_institution	Universiti Putra Malaysia
publishDate	2013
url	http://psasir.upm.edu.my/id/eprint/42883/1/FP%202013%2015R.pdf
_version_	1747811920024436736

Economic impact of climate change on palm oil and paddy production in Malaysia

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