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Dono, G., Cortignani, R., Doro, L., Giraldo, L., Ledda, L., Pasqui, M., et al. (2013). An integrated assessment of the impacts of changing climate variability on agricultural productivity and profitability in an irrigated Mediterranean catchment. Water Resource Manage., 27(10), 3607–3622.
Abstract: Climate change is likely to have a profound effect on many agricultural variables, although the extent of its influence will vary over the course of the annual farm management cycle. Consequently, the effect of different and interconnected physical, technical and economic factors must be modeled in order to estimate the effects of climate change on agricultural productivity. Such modeling commonly makes use of indicators that summarize the among environmental factors that are considered when farmers plan their activities. This study uses net evapotranspiration (ETN), estimated using EPIC, as a proxy index for the physical factors considered by farmers when managing irrigation. Recent trends suggest that the probability distribution function of ETN may continue to change in the near future due to changes in the irrigation needs of crops. Also, water availability may continue to vary due to changes in the rainfall regime. The impacts of the uncertainties related to these changes on costs are evaluated using a Discrete Stochastic Programming model representing an irrigable Mediterranean area where limited water is supplied from a reservoir. In this context, adaptation to climate change can be best supported by improvements to the collective irrigation systems, rather than by measures aimed at individual farms such as those contained within the rural development policy.
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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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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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Ponti, L., Gutierrez, A. P., Ruti, P. M., & Dell’Aquila, A. (2014). Fine-scale ecological and economic assessment of climate change on olive in the Mediterranean Basin reveals winners and losers. Proc. Natl. Acad. Sci. U. S. A., 111(15), 5598–5603.
Abstract: The Mediterranean Basin is a climate and biodiversity hot spot, and climate change threatens agro-ecosystems such as olive, an ancient drought-tolerant crop of considerable ecological and socioeconomic importance. Climate change will impact the interactions of olive and the obligate olive fruit fly (Bactrocera oleae), and alter the economics of olive culture across the Basin. We estimate the effects of climate change on the dynamics and interaction of olive and the fly using physiologically based demographic models in a geographic information system context as driven by daily climate change scenario weather. A regional climate model that includes fine-scale representation of the effects of topography and the influence of the Mediterranean Sea on regional climate was used to scale the global climate data. The system model for olive/olive fly was used as the production function in our economic analysis, replacing the commonly used production-damage control function. Climate warming will affect olive yield and fly infestation levels across the Basin, resulting in economic winners and losers at the local and regional scales. At the local scale, profitability of small olive farms in many marginal areas of Europe and elsewhere in the Basin will decrease, leading to increased abandonment. These marginal farms are critical to conserving soil, maintaining biodiversity, and reducing fire risk in these areas. Our fine-scale bioeconomic approach provides a realistic prototype for assessing climate change impacts in other Mediterranean agro-ecosystems facing extant and new invasive pests.
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