Climatic Factors on Taiwanese Agricultural Products: A Panel Data Approach

Abstract

This study, which is based on the empirical model by Barrios et al. (2008), introduces climate variables into the agricultural production function and uses the OLS method to estimate the production function of rice, fruit, and vegetables with panel data. Results show that the climate variables and agricultural production function are significantly negatively correlated. Climate change has been rapid and irreversible; therefore, for agriculture to be sustainably managed and developed, the Taiwanese government should focus on problems concerning the livelihood of Taiwanese farmers, food security, and price stability.