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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.
Keywords: land-use change; bio-energy; greenhouse gases; carbon-dioxide; climate-change; constraints; emissions; economics; storage; costs
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Lehtonen, H. (2015). Evaluating adaptation and the production development of Finnish agriculture in climate and global change. Agricultural and Food Science, 24(3), 219–234.
Abstract: Agricultural product prices and policies influence the development of crop yields under climate change through farm level management decisions. On this basis, five main scenarios were specified for agricultural commodity prices and crop yields. An economic agricultural sector model was used in order to assess the impacts of the scenarios on production, land use and farm income in Finland. The results suggest that falling crop yields, if realized due to low prices and restrictive policies, will result in decreasing crop and livestock production and increasing nutrient surplus. Slowly increasing crop yields could stabilise production and increase farm income. Significantly higher crop prices and yields are required, however, for any marked increase in production in Finland. Cereals production would increase relatively more than livestock production, if there were high prices for agricultural products. This is explained by abundant land resources, a high opportunity cost of labour and policies maintaining current dairy and beef production.
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Schönhart, M., Mitter, H., Schmid, E., Heinrich, G., & Gobiet, A. (2014). Integrated analysis of climate change impacts and adaptation measures in Austrian agriculture. German Journal of Agricultural Economics, 63(3), 156–176.
Abstract: An integrated modelling framework (IMF) has been developed and applied to analyse climate change impacts and the effectiveness of adaptation measures in Austrian agriculture. The IMF couples the crop rotation model CropRota, the bio-physical process model EPIC and the bottom-up economic land use model PASMA at regional level (NUTS-3) considering agri-environmental indicators. Four contrasting regional climate model (RCM) simulations represent climate change until 2050. The RCM simulations are applied to a baseline and three adaptation and policy scenarios. Climate change increases crop productivity on national average in the IMF. Changes in average gross margins at national level range from 0% to + 5% between the baseline and the three adaptation and policy scenarios. The impacts at NUTS-3 level range from -5% to + 7% between the baseline and the three adaptation and policy scenarios. Adaptation measures such as planting of winter cover crops, reduced tillage and irrigation are effective in reducing yield losses, increasing revenues, or in improving environmental states under climate change. Future research should account for extreme weather events in order to analyse whether average productivity gains at the aggregated level suffice to cover costs from expected higher climate variability.
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Dass, P., Müller, C., Brovkin, V., & Cramer, W. (2013). Can bioenergy cropping compensate high carbon emissions from large-scale deforestation of high latitudes. Earth System Dynamics, 4(2), 409–424.
Abstract: Numerous studies have concluded that deforestation of the high latitudes result in a global cooling. This is mainly because of the increased albedo of deforested land which dominates over other biogeophysical and biogeochemical mechanisms in the energy balance. This dominance, however, may be due to an underestimation of the biogeochemical response, as carbon emissions are typically at or below the lower end of estimates. Here, we use the dynamic global vegetation model LPJmL for a better estimate of the carbon cycle under such large-scale deforestation. These studies are purely theoretical in order to understand the role of vegetation in the energy balance and the earth system. They must not be mistaken as possible mitigation options, because of the devastating effects on pristine ecosystems. For realistic assumptions of land suitability, the total emissions computed in this study are higher than that of previous studies assessing the effects of boreal deforestation. The warming due to biogeochemical effects ranges from 0.12 to 0.32 degrees C, depending on the climate sensitivity. Using LPJmL to assess the mitigation potential of bioenergy plantations in the suitable areas of the deforested region, we find that the global biophysical bioenergy potential is 68.1 +/- 5.6 EJ yr(-1) of primary energy at the end of the 21st century in the most plausible scenario. The avoided combustion of fossil fuels over the time frame of this experiment would lead to further cooling. However, since the carbon debt caused by the cumulative emissions is not repaid by the end of the 21st century, the global temperatures would increase by 0.04 to 0.11 degrees C. The carbon dynamics in the high latitudes especially with respect to permafrost dynamics and long-term carbon losses, require additional attention in the role for the Earth’s carbon and energy budget.
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von Lampe, M., Willenbockel, D., Ahammad, H., Blanc, E., Cai, Y., Calvin, K., et al. (2014). Why do global long-term scenarios for agriculture differ? An overview of the AgMIP Global Economic Model Intercomparison. Agric. Econ., 45(1), 3.
Abstract: Recent studies assessing plausible futures for agricultural markets and global food security have had contradictory outcomes. To advance our understanding of the sources of the differences, 10 global economic models that produce long-term scenarios were asked to compare a reference scenario with alternate socioeconomic, climate change, and bioenergy scenarios using a common set of key drivers. Several key conclusions emerge from this exercise: First, for a comparison of scenario results to be meaningful, a careful analysis of the interpretation of the relevant model variables is essential. For instance, the use of real world commodity prices differs widely across models, and comparing the prices without accounting for their different meanings can lead to misleading results. Second, results suggest that, once some key assumptions are harmonized, the variability in general trends across models declines but remains important. For example, given the common assumptions of the reference scenario, models show average annual rates of changes of real global producer prices for agricultural products on average ranging between -0.4% and +0.7% between the 2005 base year and 2050. This compares to an average decline of real agricultural prices of 4% p.a. between the 1960s and the 2000s. Several other common trends are shown, for example, relating to key global growth areas for agricultural production and consumption. Third, differences in basic model parameters such as income and price elasticities, sometimes hidden in the way market behavior is modeled, result in significant differences in the details. Fourth, the analysis shows that agro-economic modelers aiming to inform the agricultural and development policy debate require better data and analysis on both economic behavior and biophysical drivers. More interdisciplinary modeling efforts are required to cross-fertilize analyses at different scales.
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