A RICARDIAN ANALYSIS OF CLIMATE CHANGE IMPACTS ON JAPAN's AGRICULTURE: ACCOUNTING FOR SOLAR RADIATION.

This article evaluates the effects of climate change on Japanese farmers' net revenue using the Ricardian model, which implicitly assumes full adaptation by farmers. The study finds that temperature changes significantly influence net revenue positively across most regions, while precipitation changes have limited effects except in spring; solar radiation was included as a climatic variable but showed no statistically significant impact. Future projections under a high greenhouse gas emission scenario (RCP8.5) suggest overall positive effects on net revenue nationwide, especially in northern Japan, contrasting with previous studies that predicted negative impacts in southern regions. However, the model’s assumption of cost-free full adaptation implies these results represent an optimistic scenario, and the study highlights the need for further research on actual adaptation costs and behaviors among farmers.