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Weindl, I., Lotze-Campen, H., Popp, A., Müller, C., Havlík, P., Herrero, M., et al. (2015). Livestock in a changing climate: production system transitions as an adaptation strategy for agriculture. Environ. Res. Lett., 10(9), 094021.
Abstract: Livestock farming is the world’s largest land use sector and utilizes around 60% of the global biomass harvest. Over the coming decades, climate change will affect the natural resource base of livestock production, especially the productivity of rangeland and feed crops. Based on a comprehensive impact modeling chain, we assess implications of different climate projections for agricultural production costs and land use change and explore the effectiveness of livestock system transitions as an adaptation strategy. Simulated climate impacts on crop yields and rangeland productivity generate adaptation costs amounting to 3% of total agricultural production costs in 2045 (i.e. 145 billion US$). Shifts in livestock production towards mixed crop-livestock systems represent a resource-and cost-efficient adaptation option, reducing agricultural adaptation costs to 0.3% of total production costs and simultaneously abating deforestation by about 76 million ha globally. The relatively positive climate impacts on grass yields compared with crop yields favor grazing systems inter alia in South Asia and North America. Incomplete transitions in production systems already have a strong adaptive and cost reducing effect: a 50% shift to mixed systems lowers agricultural adaptation costs to 0.8%. General responses of production costs to system transitions are robust across different global climate and crop models as well as regarding assumptions on CO2 fertilization, but simulated values show a large variation. In the face of these uncertainties, public policy support for transforming livestock production systems provides an important lever to improve agricultural resource management and lower adaptation costs, possibly even contributing to emission reduction.
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Nelson, G. C., Valin, H., Sands, R. D., Havlík, P., Ahammad, H., Deryng, D., et al. (2014). Climate change effects on agriculture: economic responses to biophysical shocks. Proc. Natl. Acad. Sci. U. S. A., 111(9), 3274–3279.
Abstract: Agricultural production is sensitive to weather and thus directly affected by climate change. Plausible estimates of these climate change impacts require combined use of climate, crop, and economic models. Results from previous studies vary substantially due to differences in models, scenarios, and data. This paper is part of a collective effort to systematically integrate these three types of models. We focus on the economic component of the assessment, investigating how nine global economic models of agriculture represent endogenous responses to seven standardized climate change scenarios produced by two climate and five crop models. These responses include adjustments in yields, area, consumption, and international trade. We apply biophysical shocks derived from the Intergovernmental Panel on Climate Change’s representative concentration pathway with end-of-century radiative forcing of 8.5 W/m(2). The mean biophysical yield effect with no incremental CO2 fertilization is a 17% reduction globally by 2050 relative to a scenario with unchanging climate. Endogenous economic responses reduce yield loss to 11%, increase area of major crops by 11%, and reduce consumption by 3%. Agricultural production, cropland area, trade, and prices show the greatest degree of variability in response to climate change, and consumption the lowest. The sources of these differences include model structure and specification; in particular, model assumptions about ease of land use conversion, intensification, and trade. This study identifies where models disagree on the relative responses to climate shocks and highlights research activities needed to improve the representation of agricultural adaptation responses to climate change.
Keywords: Agriculture/*economics; Carbon Dioxide/analysis; *Climate Change; Commerce/statistics & numerical data; Computer Simulation; Crops, Agricultural/*growth & development; Forecasting; Humans; *Models, Economic; agricultural productivity; climate change adaptation; integrated assessment; model intercomparison
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Schmitz, C., Kreidenweis, U., Lotze-Campen, H., Popp, A., Krause, M., Dietrich, J. P., et al. (2014). Agricultural trade and tropical deforestation: interactions and related policy options. Reg Environ Change, 15(8), 1757–1772.
Abstract: The extensive clearing of tropical forests throughout past decades has been partly assigned to increased trade in agricultural goods. Since further trade liberalisation can be expected, remaining rainforests are likely to face additional threats with negative implications for climate mitigation and the local environment. We apply a spatially explicit economic land-use model coupled to a biophysical vegetation model to examine linkages and associated policies between trade and tropical deforestation in the future. Results indicate that further trade liberalisation leads to an expansion of deforestation in Amazonia due to comparative advantages of agriculture in South America. Globally, between 30 and 60 million ha (5-10 %) of tropical rainforests would be cleared additionally, leading to 20-40 Gt additional emissions by 2050. By applying different forest protection policies, those values could be reduced substantially. Most effective would be the inclusion of avoided deforestation into a global emissions trading scheme. Carbon prices corresponding to the concentration target of 550 ppm would prevent deforestation after 2020. Investing in agricultural productivity reduces pressure on tropical forests without the necessity of direct protection. In general, additional trade-induced demand from developed and emerging countries should be compensated by international efforts to protect natural resources in tropical regions.
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Stevanović, M., Popp, A., Lotze-Campen, H., Dietrich, J. P., Müller, C., Bonsch, M., et al. (2016). The impact of high-end climate change on agricultural welfare. Sci. Adv., 2(8), e1501452.
Abstract: Climate change threatens agricultural productivity worldwide, resulting in higher food prices. Associated economic gains and losses differ not only by region but also between producers and consumers and are affected by market dynamics. On the basis of an impact modeling chain, starting with 19 different climate projections that drive plant biophysical process simulations and ending with agro-economic decisions, this analysis focuses on distributional effects of high-end climate change impacts across geographic regions and across economic agents. By estimating the changes in surpluses of consumers and producers, we find that climate change can have detrimental impacts on global agricultural welfare, especially after 2050, because losses in consumer surplus generally outweigh gains in producer surplus. Damage in agriculture may reach the annual loss of 0.3% of future total gross domestic product at the end of the century globally, assuming further opening of trade in agricultural products, which typically leads to interregional production shifts to higher latitudes. Those estimated global losses could increase substantially if international trade is more restricted. If beneficial effects of atmospheric carbon dioxide fertilization can be realized in agricultural production, much of the damage could be avoided. Although trade policy reforms toward further liberalization help alleviate climate change impacts, additional compensation mechanisms for associated environmental and development concerns have to be considered.
Keywords: ftnotmacsur
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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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