Eory, V., MacLeod, M., Shrestha, S., & Roberts, D. (2014). Linking an economic and a life-cycle analysis biophysical model to support agricultural greenhouse gas mitigation policy. German Journal of Agricultural Economics, 63, 133–142.
Abstract: Greenhouse gas (GHG) mitigation is one of the main challenges facing agriculture, exacerbated by the increasing demand for food, in particular for livestock products. Production expansion needs to be accompanied by reductions in the GHG emission intensity of agricultural products, if significant increases in emissions are to be avoided. Suggested farm management changes often have systemic effects on farm, therefore their investigation requires a whole farm approach. At the same time, changes in GHG emissions arising offfarm in food supply chains (pre- or post-farm) can also occur as a consequence of these management changes. A modelling framework that quantifies the whole-farm, life-cycle effects of GHG mitigation measures on emissions and farm finances has been developed. It is demonstrated via a case study of sexed semen on Scottish dairy farms. The results show that using sexed semen on dairy farms might be a costeffective way to reduce emissions from cattle production by increasing the amount of lower emission intensity ‘dairy beef’ produced. It is concluded that a modelling framework combining a GHG life cycle analysis model and an economic model is a useful tool to help designing targeted agri-environmental policies at regional and national levels. It has the flexibility to model a wide variety of farm types, locations and management changes, and the LCA-approach adopted helps to ensure that GHG emission leakage does not occur in the supply chain.
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Gutierrez, L., Piras, F., & Roggero, P. P. (2015). A global vector autoregression model for the analysis of wheat export prices. American Journal of Agricultural Economics, 97(5), 1494–1511.
Abstract: Food commodity price fluctuations have an important impact on poverty and food insecurity across the world. Conventional models have not provided a complete picture of recent price spikes in agricultural commodity markets, and there is an urgent need for appropriate policy responses. Perhaps new approaches are needed to better understand international spill-overs, the feedback between the real and the financial sectors, as well as the link between food and energy prices. In this article, we present the results from a new worldwide dynamic model that provides the short and long-run impulse responses of the international wheat price to various real and financial shocks.
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Schönhart, M., Mitter, H., Schmid, E., Heinrich, G., & Gobiet, A. (2014). Integrated analysis of climate change impacts and adaptation measures in Austrian agriculture. German Journal of Agricultural Economics, 63(3), 156–176.
Abstract: An integrated modelling framework (IMF) has been developed and applied to analyse climate change impacts and the effectiveness of adaptation measures in Austrian agriculture. The IMF couples the crop rotation model CropRota, the bio-physical process model EPIC and the bottom-up economic land use model PASMA at regional level (NUTS-3) considering agri-environmental indicators. Four contrasting regional climate model (RCM) simulations represent climate change until 2050. The RCM simulations are applied to a baseline and three adaptation and policy scenarios. Climate change increases crop productivity on national average in the IMF. Changes in average gross margins at national level range from 0% to + 5% between the baseline and the three adaptation and policy scenarios. The impacts at NUTS-3 level range from -5% to + 7% between the baseline and the three adaptation and policy scenarios. Adaptation measures such as planting of winter cover crops, reduced tillage and irrigation are effective in reducing yield losses, increasing revenues, or in improving environmental states under climate change. Future research should account for extreme weather events in order to analyse whether average productivity gains at the aggregated level suffice to cover costs from expected higher climate variability.
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Bojar, W., Knopik, L., Żarski, J., & Kuśmierek-Tomaszewska, R. (2016). Integrated assessment of crop productivity based on the food supply forecasting. Agricultural Economics – Czech, 61(11), 502–510.
Abstract: Climate change scenarios suggest that long periods without rainfall will occur in the future often causing instability of the agricultural products market. The aim of our research was to build a model describing the amount of precipitation and droughts for forecasting crop yields in the future. In this study, we analysed a non-standard mixture of gamma and one point distributions as the model of rainfall. On the basis of the rainfall data, one can estimate parameters of the distribution. Parameter estimators were constructed using a method of maximum likelihood. The obtained rainfall data allow confirming the hypothesis of the adequacy of the proposed rainfall models. Long series of droughts allow one to determine the probabilities of adverse phenomena in agriculture. Based on the model, yields of barley in the years 2030 and 2050 were forecasted which can be used for the assessment of other crops productivity. The results obtained with this approach can be used to predict decreases in agricultural production caused by prospective rainfall shortages. This will enable decision makers to shape effective agricultural policies in order to learn how to balance the food supplies and demands through an appropriate management of stored raw food materials and import/export policies.
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Nelson, G. C., van der Mensbrugghe, D., Ahammad, H., Blanc, E., Calvin, K., Hasegawa, T., et al. (2014). Agriculture and climate change in global scenarios: why don’t the models agree. Agric. Econ., 45(1), 85–101.
Abstract: Agriculture is unique among economic sectors in the nature of impacts from climate change. The production activity that transforms inputs into agricultural outputs involves direct use of weather inputs (temperature, solar radiation available to the plant, and precipitation). Previous studies of the impacts of climate change on agriculture have reported substantial differences in outcomes such as prices, production, and trade arising from differences in model inputs and model specification. This article presents climate change results and underlying determinants from a model comparison exercise with 10 of the leading global economic models that include significant representation of agriculture. By harmonizing key drivers that include climate change effects, differences in model outcomes were reduced. The particular choice of climate change drivers for this comparison activity results in large and negative productivity effects. All models respond with higher prices. Producer behavior differs by model with some emphasizing area response and others yield response. Demand response is least important. The differences reflect both differences in model specification and perspectives on the future. The results from this study highlight the need to more fully compare the deep model parameters, to generate a call for a combination of econometric and validation studies to narrow the degree of uncertainty and variability in these parameters and to move to Monte Carlo type simulations to better map the contours of economic uncertainty.
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