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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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Lotze-Campen, H., von Lampe, M., Kyle, P., Fujimori, S., Havlik, P., van Meijl, H., et al. (2014). Impacts of increased bioenergy demand on global food markets: an AgMIP economic model intercomparison. Agric. Econ., 45(1), 103–116.
Abstract: Integrated Assessment studies have shown that meeting ambitious greenhouse gas mitigation targets will require substantial amounts of bioenergy as part of the future energy mix. In the course of the Agricultural Model Intercomparison and Improvement Project (AgMIP), five global agro-economic models were used to analyze a future scenario with global demand for ligno-cellulosic bioenergy rising to about 100 ExaJoule in 2050. From this exercise a tentative conclusion can be drawn that ambitious climate change mitigation need not drive up global food prices much, if the extra land required for bioenergy production is accessible or if the feedstock, for example, from forests, does not directly compete for agricultural land. Agricultural price effects across models by the year 2050 from high bioenergy demand in an ambitious mitigation scenario appear to be much smaller (+5% average across models) than from direct climate impacts on crop yields in a high-emission scenario (+25% average across models). However, potential future scarcities of water and nutrients, policy-induced restrictions on agricultural land expansion, as well as potential welfare losses have not been specifically looked at in this exercise.
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Klein, D., Luderer, G., Kriegler, E., Strefler, J., Bauer, N., Leimbach, M., et al. (2014). The value of bioenergy in low stabilization scenarios: an assessment using REMIND-MAgPIE. Clim. Change, 123(3-4), 705–718.
Abstract: This study investigates the use of bioenergy for achieving stringent climate stabilization targets and it analyzes the economic drivers behind the choice of bioenergy technologies. We apply the integrated assessment framework REMIND-MAgPIE to show that bioenergy, particularly if combined with carbon capture and storage (CCS) is a crucial mitigation option with high deployment levels and high technology value. If CCS is available, bioenergy is exclusively used with CCS. We find that the ability of bioenergy to provide negative emissions gives rise to a strong nexus between biomass prices and carbon prices. Ambitious climate policy could result in bioenergy prices of 70 $/GJ (or even 430 $/GJ if bioenergy potential is limited to 100 EJ/year), which indicates a strong demand for bioenergy. For low stabilization scenarios with BECCS availability, we find that the carbon value of biomass tends to exceed its pure energy value. Therefore, the driving factor behind investments into bioenergy conversion capacities for electricity and hydrogen production are the revenues generated from negative emissions, rather than from energy production. However, in REMIND modern bioenergy is predominantly used to produce low-carbon fuels, since the transport sector has significantly fewer low-carbon alternatives to biofuels than the power sector. Since negative emissions increase the amount of permissible emissions from fossil fuels, given a climate target, bioenergy acts as a complement to fossils rather than a substitute. This makes the short-term and long-term deployment of fossil fuels dependent on the long-term availability of BECCS.
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Popp, A., Rose, S. K., Calvin, K., Van Vuuren, D. P., Dietrich, J. P., Wise, M., et al. (2014). Land-use transition for bioenergy and climate stabilization: model comparison of drivers, impacts and interactions with other land use based mitigation options. Clim. Change, 123(3-4), 495–509.
Abstract: In this article, we evaluate and compare results from three integrated assessment models (GCAM, IMAGE, and ReMIND/MAgPIE) regarding the drivers and impacts of bioenergy production on the global land system. The considered model frameworks employ linked energy, economy, climate and land use modules. By the help of these linkages the direct competition of bioenergy with other energy technology options for greenhouse gas (GHG) mitigation, based on economic costs and GHG emissions from bioenergy production, has been taken into account. Our results indicate that dedicated bioenergy crops and biomass residues form a potentially important and cost-effective input into the energy system. At the same time, however, the results differ strongly in terms of deployment rates, feedstock composition and land-use and greenhouse gas implications. The current paper adds to earlier work by specific looking into model differences with respect to the land-use component that could contribute to the noted differences in results, including land cover allocation, land use constraints, energy crop yields, and non-bioenergy land mitigation options modeled. In scenarios without climate change mitigation, bioenergy cropland represents 10-18 % of total cropland by 2100 across the different models, and boosts cropland expansion at the expense of carbon richer ecosystems. Therefore, associated emissions from land-use change and agricultural intensification as a result of bio-energy use range from 14 and 113 Gt CO2-eq cumulatively through 2100. Under climate policy, bioenergy cropland increases to 24-36 % of total cropland by 2100.
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Schmitz, C., Lotze-Campen, H., Gerten, D., Dietrich, J. P., Bodirsky, B., Biewald, A., et al. (2013). Blue water scarcity and the economic impacts of future agricultural trade and demand. Water Resource Research, 49(6), 3601–3617.
Abstract: An increasing demand for agricultural goods affects the pressure on global water resources over the coming decades. In order to quantify these effects, we have developed a new agroeconomic water scarcity indicator, considering explicitly economic processes in the agricultural system. The indicator is based on the water shadow price generated by an economic land use model linked to a global vegetation-hydrology model. Irrigation efficiency is implemented as a dynamic input depending on the level of economic development. We are able to simulate the heterogeneous distribution of water supply and agricultural water demand for irrigation through the spatially explicit representation of agricultural production. This allows in identifying regional hot spots of blue water scarcity and explicit shadow prices for water. We generate scenarios based on moderate policies regarding future trade liberalization and the control of livestock-based consumption, dependent on different population and gross domestic product (GDP) projections. Results indicate increased water scarcity in the future, especially in South Asia, the Middle East, and north Africa. In general, water shadow prices decrease with increasing liberalization, foremost in South Asia, Southeast Asia, and the Middle East. Policies to reduce livestock consumption in developed countries not only lower the domestic pressure on water but also alleviate water scarcity to a large extent in developing countries. It is shown that one of the two policy options would be insufficient for most regions to retain water scarcity in 2045 on levels comparable to 2005.
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