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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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Müller, C., & Robertson, R. D. (2014). Projecting future crop productivity for global economic modeling. Agric. Econ., 45(1), 37–50.
Abstract: Assessments of climate change impacts on agricultural markets and land-use patterns rely on quantification of climate change impacts on the spatial patterns of land productivity. We supply a set of climate impact scenarios on agricultural land productivity derived from two climate models and two biophysical crop growth models to account for some of the uncertainty inherent in climate and impact models. Aggregation in space and time leads to information losses that can determine climate change impacts on agricultural markets and land-use patterns because often aggregation is across steep gradients from low to high impacts or from increases to decreases. The four climate change impact scenarios supplied here were designed to represent the most significant impacts (high emission scenario only, assumed ineffectiveness of carbon dioxide fertilization on agricultural yields, no adjustments in management) but are consistent with the assumption that changes in agricultural practices are covered in the economic models. Globally, production of individual crops decrease by 10-38% under these climate change scenarios, with large uncertainties in spatial patterns that are determined by both the uncertainty in climate projections and the choice of impact model. This uncertainty in climate impact on crop productivity needs to be considered by economic assessments of climate change.
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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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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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Dono, G., Raffaele, C., Luca, G., & Roggero, P. P. (2014). Income Impacts of Climate Change: Irrigated Farming in the Mediterranean and Expected Changes in Probability of Favorable and Adverse Weather Conditions. German Journal of Agricultural Economics, 63(3), 177–186.
Abstract: EU rural development policy (RDP) regulation 1305/2013 aims to protect farmers’ incomes from ongoing change of climate variability (CCV), and the increase in frequency of adverse climatic events. An income stabilization tool (IST) is provided to compensate drastic drops in income, including those caused by climatic events. The present study examines some aspect of its application focussing on Mediterranean irrigation area where frequent water shortages may generate significant income reductions in the current climate conditions, and may be further exacerbated by climate change. This enhanced loss of income in the future would occur due to a change in climate variability. This change would appreciably reduce the probability of weather conditions that are favourable for irrigation, but would not significantly increase either the probability of unfavourable weather conditions or the magnitude of their impact. As the IST and other insurance tools that protect against adversity and catastrophic events are only activated under extreme conditions, farmers may not consider them to be suitable in dealing with the new climate regime. This would leave a portion of the financial resources allocated by the RDP unused, resulting in less support for climate change adaptation.
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