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Camacho, C., & Pérez-Barahona, A. (2015). Land use dynamics and the environment. Journal of Economic Dynamics and Control, 52, 96–118.
Abstract: This paper builds a benchmark framework to study optimal land use, encompassing land use activities and environmental degradation. We focus on the spatial externalities of land use as drivers of spatial patterns: land is immobile by nature, but local actions affect the whole space since pollution flows across locations resulting in both local and global damages. We prove that the decision maker problem has a solution, and characterize the corresponding social optimum trajectories by means of the Pontryagin conditions. We also show that the existence and uniqueness of time-invariant solutions are not in general guaranteed. Finally, a global dynamic algorithm is proposed in order to illustrate the spatial-dynamic richness of the model. We find that our simple set-up already reproduces a great variety of spatial patterns related to the interaction between land use activities and the environment. In particular, abatement technology turns out to play a central role as pollution stabilizer, allowing the economy to reach a time-invariant equilibrium that can be spatially heterogeneous. (C) 2014 Elsevier B.V. All rights reserved.
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Mitter, H., Heumesser, C., & Schmid, E. (2015). Spatial modeling of robust crop production portfolios to assess agricultural vulnerability and adaptation to climate change. Land Use Policy, 46, 75–90.
Abstract: Agricultural vulnerability to climate change is likely to vary considerably between agro-environmental regions. Exemplified on Austrian cropland, we aim at (i) quantifying climate change impacts on agricultural vulnerability which is approximated by the indicators crop yields and gross margins, (ii) developing robust crop production portfolios for adaptation, and (iii) analyzing the effect of agricultural policies and risk aversion on the choice of crop production portfolios. We have employed a spatially explicit, integrated framework to assess agricultural vulnerability and adaptation. It combines a statistical climate change model for Austria and the period 2010-2040, a crop rotation model, the bio-physical process model EPIC (Environmental Policy Integrated Climate), and a portfolio optimization model. We find that under climate change, crop production portfolios include higher shares of intensive crop management practices, increasing average crop yields by 2-15% and expected gross margins by 3-18%, respectively. The results depend on the choice of adaptation measures and on the level of risk aversion and vary by region. In the semi-arid eastern parts of Austria, average dry matter crop yields are lower but gross margins are higher than in western Austria due to bio-physical and agronomic heterogeneities. An abolishment of decoupled farm payments and a threefold increase in agri-environmental premiums would reduce nitrogen inputs by 23-33%, but also crop yields and gross margins by 18-37%, on average. From a policy perspective, a twofold increase in agri-environmental premiums could effectively reduce the trade-offs between crop production and environmental impacts. (C) 2015 Elsevier Ltd. All rights reserved.
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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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Lehtonen, H., Palosuo, T., Korhonen, P., & Liu, X. (2018). Higher Crop Yield Levels in the North Savo Region—Means and Challenges Indicated by Farmers and Their Close Stakeholders. Agriculture, 8(7), 93.
Abstract: The sustainable intensification of farming systems is expected to increase food supply and reduce the negative environmental effects of agriculture. It is also seen as an effective adaptation and mitigation strategy in response to climate change. Our aim is to determine farmers’ and other stakeholders’ views on how higher crop yields can be achieved from their currently low levels. This was investigated in two stakeholder workshops arranged in North Savo, Finland, in 2014 and 2016. The workshop participants, who were organized in discussion groups, considered some agricultural policies to discourage the improvement of crop yields. Policy schemes were seen to support extensification and reduce the motivation for yield improvements. However, the most important means for higher crop yields indicated by workshop participants were improved soil conditions with drainage and liming, in addition to improved crop rotations, better sowing techniques, careful selection of cultivars and forage grass mixtures. Suggested solutions for improving both crop yields and farm income also included optimized use of inputs, focusing production at the most productive fields and actively developed farming skills and knowledge sharing. These latter aspects were more pronounced in 2016, suggesting that farmers’ skills are increasingly being perceived as important.
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Mitter, H., Schmid, E., & Sinabell, F. (2015). Integrated modelling of protein crop production responses to climate change and agricultural policy scenarios in Austria. Clim. Res., 65, 205–220.
Abstract: Climate and policy changes are likely to affect protein crop production and thus trade balances in Europe, which is highly dependent on imports. Exemplified for Austrian cropland, we developed an integrated modelling framework to analyze climate change and policy scenario impacts on protein crop production and environmental outcomes. The integrated modelling framework consists of a statistical climate change model, a crop rotation model, the bio-physical process model EPIC, and the economic bottom-up land use optimization model BiomAT. EPIC is applied to simulate annual dry matter crop yields for different crop management practices including crop rotations, fertilization intensities, and irrigation, as well as for 3 regional climate change scenarios until 2040 at a 1 km grid resolution. BiomAT maximizes total gross margins by optimizing land use choices and crop management practices subject to spatially explicit cropland endowments. The model results indicate that changes in agricultural policy conditions, cropland use, and higher flexibility in crop management practices may reduce protein import dependence under changing climatic conditions. Expanding protein crop production is most attractive in south-eastern Austria with its Central European continental climate where maize is most often replaced in crop rotations. However, the acreage of protein crops is limited by agronomically suitable cropland. An intended side effect is the reduction of nitrogen fertilizer inputs by about 0.1% if total protein crop production increases by 1%.
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