Abstract: The land use sector of agriculture, forestry, and other land use (AFOLU) plays a central role in ambitious climate change mitigation efforts. Yet, mitigation policies in agriculture may be in conflict with food security related targets. Using a global agro-economic model, we analyze the impacts on food prices under mitigation policies targeting either incentives for producers (e.g., through taxes) or consumer preferences (e.g., through education programs). Despite having a similar reduction potential of 43-44% in 2100, the two types of policy instruments result in opposite outcomes for food prices. Incentive-based mitigation, such as protecting carbon-rich forests or adopting low-emission production techniques, increase land scarcity and production costs and thereby food prices. Preference-based mitigation, such as reduced household waste or lower consumption of animal-based products, decreases land scarcity, prevents emissions leakage, and concentrates production on the most productive sites and consequently lowers food prices. Whereas agricultural emissions are further abated in the combination of these mitigation measures, the synergy of strategies fails to substantially lower food prices. Additionally, we demonstrate that the efficiency of agricultural emission abatement is stable across a range of greenhouse-gas (GHG) tax levels, while resulting food prices exhibit a disproportionally larger spread.

Abstract: Climate change has impacts on agricultural yields, which could alter cropland requirements and hence deforestation rates. Thus, land-use responses to climate change might influence terrestrial carbon stocks. Moreover, climate change could alter the carbon storage capacity of the terrestrial biosphere and hence the land-based mitigation potential. We use a global spatially explicit economic land-use optimization model to (a) estimate the mitigation potential of a climate policy that provides economic incentives for carbon stock conservation and enhancement, (b) simulate land-use and carbon cycle responses to moderate climate change (RCP2.6), and (c) investigate the combined effects throughout the 21st century. The climate policy immediately stops deforestation and strongly increases afforestation, resulting in a global mitigation potential of 191 GtC in 2100. Climate change increases terrestrial carbon stocks not only directly through enhanced carbon sequestration (62 GtC by 2100) but also indirectly through less deforestation due to higher crop yields (16 GtC by 2100). However, such beneficial climate impacts increase the potential of the climate policy only marginally, as the potential is already large under static climatic conditions. In the broader picture, this study highlights the importance of land-use dynamics for modeling carbon cycle responses to climate change in integrated assessment modeling.

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.