{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ps5 - Department of Agricultural and Resource Economics...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Department of Agricultural and Resource Economics EEP 101/ECON 125 University of California at Berkeley David Zilberman Homework No. 5 1. Climate change . 3. The profits of 1 unit of land in corn (the hot crop) is p H , and 1 unit of land producing wheat (the cold drop) is C . They are functions of temperature T and carbon C in the atmosphere following pp HC TT C T T C =- - - = - (( ) ( )) ( ) 53 3 5 22 . Before climate change, a country has 1 unit of agricultural lands on all locations with L = 0 to L = 12. The temperature at location L is T = 8 - L . Therefore, at the location with L = 0, the temperature is 8 (very hot) and at L = 12 it is -4. Before climate change, C = 1. a. What will be the pattern of production before climate change? (Where are crops 1 and 2 grown?) How is profit distributed across locations? (Compute () , () , (). .. ( ) 01 21 2 recognizing that the most profitable crop will be grown at each location and nothing will be grown when profit is negative.) b. Suppose that after climate change T = 10 - L and C = 1.1. What do these changes mean? How will climate change affect the allocation of production and distribution of profit over space? Who will gain and lose from climate change?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 4

ps5 - Department of Agricultural and Resource Economics...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online