Abstract: This article compares the theoretical and functional specification of production in partial equilibrium (PE) and computable general equilibrium (CGE) models of the global agricultural and food system included in the AgMIP model comparison study. The two model families differ in their scopepartial versus economy-wideand in how they represent technology and the behavior of supply and demand in markets. The CGE models are deep structural models in that they explicitly solve the maximization problem of consumers and producers, assuming utility maximization and profit maximization with production/cost functions that include all factor inputs. The PE models divide into two groups on the supply side: (1) shallow structural models, which essentially specify area/yield supply functions with no explicit maximization behavior, and (2) deep structural models that provide a detailed activity-analysis specification of technology and explicit optimizing behavior by producers. While the models vary in their specifications of technology, both within and between the PE and CGE families, we consider two stylized theoretical models to compare the behavior of crop yields and supply functions in CGE models with their behavior in shallow structural PE models. We find that the theoretical responsiveness of supply to changes in prices can be similar, depending on parameter choices that define the behavior of implicit supply functions over the domain of applicability defined by the common scenarios used in the AgMIP comparisons. In practice, however, the applied models are more complex and differ in their empirical sensitivity to variations in specificationcomparability of results given parameter choices is an empirical question. To illustrate the issues, sensitivity analysis is done with one global CGE model, MAGNET, to indicate how the results vary with different specification of technical change, and how they compare with the results from PE models.

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.