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Lotze-Campen, H., von Witzke, H., Noleppa, S., & Schwarz, G. (2015). Science for food, climate protection and welfare: An economic analysis of plant breeding research in Germany. Agric. Syst., 136, 79–84.
Abstract: Highlights • We analyze the economic effects of plant breeding research in Germany. • Effects of reduced CO2 emissions due to productivity increases are being quantified. • Expansion of global agricultural area has been reduced by 1–1.5 million ha. • CO2 emissions have been reduced by 160–235 million tons. • German plant breeding research has an economic value of 10.8–15.6 billion EUR. Abstract We analyze the economic effects of plant breeding research in Germany. In addition to market effects, for the first time also effects of reduced CO2 emissions due to productivity increases are being quantified. The analysis shows that investments in German plant breeding research in the period 1991–2010 have reduced the global expansion of agricultural area by 1–1.5 million hectares. This has led to reduced CO2 emissions of 160–235 million tons. The economic value generated by plant breeding research, through increased production and reduced greenhouse gas emissions, is estimated at 10.8–15.6 billion EUR in the same period. This can be translated into a social rate of return on research investment in the range of 40–80% per year. Projections for the period 2011–2030 generate a return rate in the range of 65–140% per year. Investments into plant breeding research in Germany are highly profitable from a societal point of view. At the same time, our results show significant under-investments in agricultural research in Germany. These results provide a good justification for policy-makers to reverse funding cuts for public agricultural research over the last decades and to improve institutional conditions for private research, e.g. through better protection of intellectual property rights.
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Wang, X., Biewald, A., Dietrich, J. P., Schmitz, C., Lotze-Campen, H., Humpenöder, F., et al. (2016). Taking account of governance: Implications for land-use dynamics, food prices, and trade patterns. Ecol. Econ., 122, 12–24.
Abstract: Highlights • Governance impacts on land use dynamics are modeled at the global scale with an agro-economic dynamic optimization model. • Improved governance performance lowers deforestation, reduces cropland expansion and increases agricultural yield. • Good governance makes a decisive difference in investment for increasing yields in developing regions. • Weak governance increases food prices, particularly in Sub-Saharan Africa and Southeast Asia. • Improving governance performance has significant impacts on poverty reduction. Abstract Deforestation, mainly caused by unsustainable agricultural expansion, results in a loss of biodiversity and an increase in greenhouse gas emissions, as well as impinges on local livelihoods. Countries’ governance performance, particularly with respect to property rights security, exerts significant impacts on land-use patterns by affecting agricultural yield-related technological investment and cropland expansion. This study aims to incorporate governance factors into a recursive agro-economic dynamic model to simulate governance impacts on land-use patterns at the global scale. Due to the difficulties of including governance indicators directly into numerical models, we use lending interest rates as discount rates to reflect risk-accounting factors associated with different governance scenarios. In addition to a reference scenario, three scenarios with high, low and mixed divergent discount rates are formed to represent weak, strong and fragmented governance. We find that weak governance leads to slower yield growth, increased cropland expansion and associated deforestation, mainly in Latin America, Sub-Saharan Africa, South Asia and Southeast Asia. This is associated with increasing food prices, particularly in Sub-Saharan Africa and Southeast Asia. By contrast, strong governance performance provides a stable political and economic situation which may bring down deforestation rates, stimulate investment in agricultural technologies, and induce fairly strong decreases in food prices.
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Stevanović, M., Popp, A., Lotze-Campen, H., Dietrich, J. P., Müller, C., Bonsch, M., et al. (2016). The impact of high-end climate change on agricultural welfare. Sci. Adv., 2(8), e1501452.
Abstract: Climate change threatens agricultural productivity worldwide, resulting in higher food prices. Associated economic gains and losses differ not only by region but also between producers and consumers and are affected by market dynamics. On the basis of an impact modeling chain, starting with 19 different climate projections that drive plant biophysical process simulations and ending with agro-economic decisions, this analysis focuses on distributional effects of high-end climate change impacts across geographic regions and across economic agents. By estimating the changes in surpluses of consumers and producers, we find that climate change can have detrimental impacts on global agricultural welfare, especially after 2050, because losses in consumer surplus generally outweigh gains in producer surplus. Damage in agriculture may reach the annual loss of 0.3% of future total gross domestic product at the end of the century globally, assuming further opening of trade in agricultural products, which typically leads to interregional production shifts to higher latitudes. Those estimated global losses could increase substantially if international trade is more restricted. If beneficial effects of atmospheric carbon dioxide fertilization can be realized in agricultural production, much of the damage could be avoided. Although trade policy reforms toward further liberalization help alleviate climate change impacts, additional compensation mechanisms for associated environmental and development concerns have to be considered.
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Lotze-Campen, H., Verburg, P. H., Popp, A., Lindner, M., Verkerk, P. J., Moiseyev, A., et al. (2018). A cross-scale impact assessment of European nature protection policies under contrasting future socio-economic pathways. Reg. Environ. Change, 18(3), 751–762.
Abstract: Protection of natural or semi-natural ecosystems is an important part of societal strategies for maintaining biodiversity, ecosystem services, and achieving overall sustainable development. The assessment of multiple emerging land use trade-offs is complicated by the fact that land use changes occur and have consequences at local, regional, and even global scale. Outcomes also depend on the underlying socio-economic trends. We apply a coupled, multi-scale modelling system to assess an increase in nature protection areas as a key policy option in the European Union (EU). The main goal of the analysis is to understand the interactions between policy-induced land use changes across different scales and sectors under two contrasting future socio-economic pathways. We demonstrate how complementary insights into land system change can be gained by coupling land use models for agriculture, forestry, and urban areas for Europe, in connection with other world regions. The simulated policy case of nature protection shows how the allocation of a certain share of total available land to newly protected areas, with specific management restrictions imposed, may have a range of impacts on different land-based sectors until the year 2040. Agricultural land in Europe is slightly reduced, which is partly compensated for by higher management intensity. As a consequence of higher costs, total calorie supply per capita is reduced within the EU. While wood harvest is projected to decrease, carbon sequestration rates increase in European forests. At the same time, imports of industrial roundwood from other world regions are expected to increase. Some of the aggregate effects of nature protection have very different implications at the local to regional scale in different parts of Europe. Due to nature protection measures, agricultural production is shifted from more productive land in Europe to on average less productive land in other parts of the world. This increases, at the global level, the allocation of land resources for agriculture, leading to a decrease in tropical forest areas, reduced carbon stocks, and higher greenhouse gas emissions outside of Europe. The integrated modelling framework provides a method to assess the land use effects of a single policy option while accounting for the trade-offs between locations, and between regional, European, and global scales.
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Kriegler, E., Bauer, N., Popp, A., Humpenöder, F., Leimbach, M., Strefler, J., et al. (2017). Fossil-fueled development (SSP5): An energy and resource intensive scenario for the 21st century. Glob. Environ. Change, 42, 297–315.
Abstract: Highlights • The SSP5 scenarios mark the upper end of the scenario literature in fossil fuel use, food demand, energy use and greenhouse gas emissions. • The SSP5 marker scenario results in a radiative forcing pathway close to the highest Representative Concentration Pathway (RCP8.5). • An investigation of mitigation policies in SSP5 confirms high socio-economic challenges to mitigation in SSP5. • In SSP5, ambitious climate targets require land based carbon management options such as avoided deforestation and bioenergy production with CCS. • The SSP5 scenarios provide useful reference points for future climate change, impact, adaption, mitigation and sustainable development analysis. Abstract This paper presents a set of energy and resource intensive scenarios based on the concept of Shared Socio-Economic Pathways (SSPs). The scenario family is characterized by rapid and fossil-fueled development with high socio-economic challenges to mitigation and low socio-economic challenges to adaptation (SSP5). A special focus is placed on the SSP5 marker scenario developed by the REMIND-MAgPIE integrated assessment modeling framework. The SSP5 baseline scenarios exhibit very high levels of fossil fuel use, up to a doubling of global food demand, and up to a tripling of energy demand and greenhouse gas emissions over the course of the century, marking the upper end of the scenario literature in several dimensions. These scenarios are currently the only SSP scenarios that result in a radiative forcing pathway as high as the highest Representative Concentration Pathway (RCP8.5). This paper further investigates the direct impact of mitigation policies on the SSP5 energy, land and emissions dynamics confirming high socio-economic challenges to mitigation in SSP5. Nonetheless, mitigation policies reaching climate forcing levels as low as in the lowest Representative Concentration Pathway (RCP2.6) are accessible in SSP5. The SSP5 scenarios presented in this paper aim to provide useful reference points for future climate change, climate impact, adaption and mitigation analysis, and broader questions of sustainable development.
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