infonet-economy

This paper investigates the dynamic effects of rainfall shocks on agroecosystems productivity. The analysis estimates a panel data model of cereal production in southern Italy. It documents the adverse effects of a reduction in rainfall on the agroecosystem productivity both in the short run and the long run. It investigates how increasing the level of spatial crop diversity can mitigate this negative impact. The empirical evidence shows how higher diversity supports resilience and maintains the system productivity under challenging climatic conditions.