Climate change impact on value of land in Nepal
This study examined the impact of climate change across three ecological regions of Nepal. The study applied a Ricardian Analysis of 2750 farms to estimate the impact of climate change on the value of land in various geographical areas of Nepal. After running regression separately on value of irrigated and rain fed farms in Nepal with and without regional fixed effects, value of land across three ecological regions found to be highly sensitive to the climate variables such as temperatures and precipitation. The study reveals that value of irrigated and rain fed farms of the hills and low land terai regions are significantly affected as compared to value of land of mountain regions. Winter precipitation is highly vulnerable for rain fed farm compared with irrigated farm. Both temperatures of rainy and winter seasons affect land value of irrigated than rain fed farm lands. From the analysis, it is found that precipitation and temperature increment has severe impact on both irrigated and rain fed land across different agro-ecological zones. Yet, severity of impact is more on value of irrigated land especially on low belt of Nepal known as terai region.