CLIMATE CHANGE ADAPTATION AND ITS EFFECTS ON THE ECONOMY OF THE RURAL MEXICAN HOUSEHOLD FOOD PRODUCERS

Abstract

This article analyzes the possible impacts of the climate change (CC) and its adaptation measures on the maize trade surplus/deficit, on the production, and on the real income of households established in rural Mexico. The analysis is based on an Applied and Microeconomic General Equilibrium Model and on the estimates of the direct effects of CC on maize yields obtained from the related literature. The results show that climate change will reduce the real rural income by 6.23% and will affect corn production to the extent that the area will change from being a surplus to a deficit. In addition, it is found that while the adaptation measures analyzed in the paper will help to reduce the negative effects of the phenomenon, they will not completely eliminate them.