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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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Müller, C., & Robertson, R. D. (2014). Projecting future crop productivity for global economic modeling. Agric. Econ., 45(1), 37–50.
Abstract: Assessments of climate change impacts on agricultural markets and land-use patterns rely on quantification of climate change impacts on the spatial patterns of land productivity. We supply a set of climate impact scenarios on agricultural land productivity derived from two climate models and two biophysical crop growth models to account for some of the uncertainty inherent in climate and impact models. Aggregation in space and time leads to information losses that can determine climate change impacts on agricultural markets and land-use patterns because often aggregation is across steep gradients from low to high impacts or from increases to decreases. The four climate change impact scenarios supplied here were designed to represent the most significant impacts (high emission scenario only, assumed ineffectiveness of carbon dioxide fertilization on agricultural yields, no adjustments in management) but are consistent with the assumption that changes in agricultural practices are covered in the economic models. Globally, production of individual crops decrease by 10-38% under these climate change scenarios, with large uncertainties in spatial patterns that are determined by both the uncertainty in climate projections and the choice of impact model. This uncertainty in climate impact on crop productivity needs to be considered by economic assessments of climate change.
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Liu, X., Lehtonen, H., Purola, T., Pavlova, Y., Rötter, R., & Palosuo, T. (2016). Dynamic economic modelling of crop rotations with farm management practices under future pest pressure. Agricultural Systems, 144, 65–76.
Abstract: Agricultural practice is facing multiple challenges under volatile commodity markets, inevitable climate change, mounting pest pressure and various other environment-related constraints. The objective of this research is to present a dynamic optimization model of crop rotations and farm management and show its suitability for economic analysis over a 30 year time period. In this model, we include management practices such as fertilization, fungicide treatment and liming, and apply it in a region in Southwestern Finland. Results show that (i) growing pest pressure favours the cultivation of wheat-oats and wheat-oilseeds combinations, while (ii) market prices largely determine the crops in the rotation plan and the specific management practices adopted. The flexibility of our model can also be utilized in evaluating the value of other management options such as new cultivars under different projections of future climate and market conditions.
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Özkan, Ş., Farquharson, R. J., Hill, J., & Malcolm, B. (2015). A stochastic analysis of the impact of input parameters on profit of Australian pasture-based dairy farms under variable carbon price scenarios. Environmental Science & Policy, 48, 163–171.
Abstract: The imposition of a carbon tax in the economy will have indirect impacts on dairy farmers in Australia. Although there is a great deal of information available regarding mitigation strategies both in Australia and internationally, there seems to be a lack of research investigating the variable prices of carbon-based emissions on dairy farm operating profits in Australia. In this study, a stochastic analysis comparing the uncertainty in income in response to different prices on carbon-based emissions was conducted. The impact of variability in pasture consumption and variable prices of concentrates and hay on farm profitability was also investigated. The two different feeding systems examined were a ryegrass pasture-based system (RM) and a complementary forage-based system (CF). Imposing a carbon price ($20-$60) and not changing the systems reduced the farm operating profits by 28.4% and 25.6% in the RM and CF systems, respectively compared to a scenario where no carbon price was imposed. Different farming businesses will respond to variability in the rapidly changing operating environment such as fluctuations in pasture availability, price of purchased feeds and price of milk or carbon emissions differently. Further, in case there is a carbon price imposed for GHG emissions emanated from dairy farming systems, changing from pasture-based to more complex feeding systems incorporating home-grown double crops may reduce the reductions in farm operating profits. There is opportunity for future studies to focus on the impacts of different mitigation strategies and policy applications on farm operating profits. (C) 2015 Elsevier Ltd. All rights reserved.
Keywords: carbon tax; operating profit; stochastic dominance; dairy; feeding system; mitigation; cows; systems; efficiency; risk
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Hidy, D., Barcza, Z., Haszpra, L., Churkina, G., Pintér, K., & Nagy, Z. (2012). Development of the Biome-BGC model for simulation of managed herbaceous ecosystems. Ecol. Model., 226, 99–119.
Abstract: Apart from measurements, numerical models are the most convenient instruments to analyze the carbon and water balance of terrestrial ecosystems and their interactions with changing environmental conditions. The process-based Biome-BGC model is widely used to simulate the storage and flux of water, carbon, and nitrogen within the vegetation, litter, and soil of unmanaged terrestrial ecosystems. Considering herbaceous vegetation related simulations with Biome-BGC, soil moisture and growing season control on ecosystem functioning is inaccurate due to the simple soil hydrology and plant phenology representation within the model. Consequently, Biome-BGC has limited applicability in herbaceous ecosystems because (1) they are usually managed; (2) they are sensitive to soil processes, most of all hydrology; and (3) their carbon balance is closely connected with the growing season length. Our aim was to improve the applicability of Biome-BGC for managed herbaceous ecosystems by implementing several new modules, including management. A new index (heatsum growing season index) was defined to accurately estimate the first and the final days of the growing season. Instead of a simple bucket soil sub-model, a multilayer soil sub-model was implemented, which can handle the processes of runoff, diffusion and percolation. A new module was implemented to simulate the ecophysiological effect of drought stress on plant mortality. Mowing and grazing modules were integrated in order to quantify the functioning of managed ecosystems. After modifications, the Biome-BGC model was calibrated and validated using eddy covariance-based measurement data collected in Hungarian managed grassland ecosystems. Model calibration was performed based on the Bayes theorem. As a result of these developments and calibration, the performance of the model was substantially improved. Comparison with measurement-based estimate showed that the start and the end of the growing season are now predicted with an average accuracy of 5 and 4 days instead of 46 and 85 days as in the original model. Regarding the different sites and modeled fluxes (gross primary production, total ecosystem respiration, evapotranspiration), relative errors were between 18-60% using the original model and 10-18% using the developed model; squares of the correlation coefficients were between 0.02-0.49 using the original model and 0.50-0.81 using the developed model. (c) 2011 Elsevier B.V. All rights reserved.
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