This study examines the economic impacts of climate change on rice farmers in Thai
province Khon Kaen using Ricardian approach based on a cross section primary survey of
over 300 rice farming households from different agro climatic districts. Net revenue of rice
crop per hectare was regressed on climate (temperature and precipitation), soil variables
(major dominant soil types) and household survey data (size of household, farm size,
agricultural inputs, livestock and extension services etc.,). The results show that these
variables have a significant impact on the rice crop net revenue per hectare of households
under provincial conditions. The marginal impact analysis indicates that increasing
temperature during dry season would significantly reduce rice crop net revenue per hectare
whereas increasing precipitation during wet season would significantly increase rice net
revenue per hectare. Besides that the rice crop net revenue impact of specific scenarios
climate models (CGCM3T63, CSIROMk3.5 and ECHAM50M) for the years 2050 and 2100.
However, the reduction in rice crop net revenue per hectare by the year 2100 would be more
than the reduction by the year 2050. This indicates that the level of damage due to climate
change continues to increase in the future unless adaptation is undertaken to reduce this
negative impact of climate change. In addition, the survey results of the study confirm the
significance of climate for rice production and the need to take steps to strengthen existing
adaptation options and to develop new ones.