Does Climate Change Influence Russian Agriculture? Evidence from Panel Data Analysis

Agriculture is one of the economic sectors primarily affected by climate change. This impact is very uneven, especially for countries with large territories. This paper examines the contribution of climate change to the improvement in agricultural productivity in Russia over the past two decades. Several ensembles of fixed effects regressions on yields and gross harvests of grain, fruits, and berries, potato, and vegetables were evaluated for a sample of 77 Russian regions over the 2002-2019 period. In contrast to similar studies of the climate impact on Russian agriculture, we considered a larger set of variables, including both Russian and global climate trends, technological factors, and producer prices. Russian weather trends such as winter softening and increase in summer heat have a significant but opposite effect on yields. An interesting finding is a significant and mostly positive influence of global climatic variables, such as the CO2 concentration, El Nino and La Nina events on both harvests and yields. Although technological factors are the main drivers of growth in Russian agricultural performance over the past 20 years, we found a strong positive effect on yield and gross harvest only for mineral fertilizers. The influence of the other variables is mixed, which is mainly due to data quality and aggregation errors.