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.

Abstract: Climate change and socioeconomic developments will have a decisive impact on people exposed to hunger. This study analyses climate change impacts on agriculture and potential implications for the occurrence of hunger under different socioeconomic scenarios for 2030, focusing on the world regions most affected by poverty today: the Middle East and North Africa, South Asia, and Sub-Saharan Africa. We use a spatially explicit, agroeconomic land-use model to assess agricultural vulnerability to climate change. The aims of our study are to provide spatially explicit projections of climate change impacts on Costs of Food, and to combine them with spatially explicit hunger projections for the year 2030, both under a poverty, as well as a prosperity scenario. Our model results indicate that while average yields decrease with climate change in all focus regions, the impact on the Costs of Food is very diverse. Costs of Food increase most in the Middle East and North Africa, where available agricultural land is already fully utilized and options to import food are limited. The increase is least in Sub-Saharan Africa, since production there can be shifted to areas which are only marginally affected by climate change and imports from other regions increase. South Asia and Sub-Saharan Africa can partly adapt to climate change, in our model, by modifying trade and expanding agricultural land. In the Middle East and North Africa, almost the entire population is affected by increasing Costs of Food, but the share of people vulnerable to hunger is relatively low, due to relatively strong economic development in these projections. In Sub-Saharan Africa, the Vulnerability to Hunger will persist, but increases in Costs of Food are moderate. While in South Asia a high share of the population suffers from increases in Costs of Food and is exposed to hunger, only a negligible number of people will be exposed at extreme levels. Independent of the region, the impacts of climate change are less severe in a richer and more globalized world. Adverse climate impacts on the Costs of Food could be moderated by promoting technological progress in agriculture. Improving market access would be advantageous for farmers, providing the opportunity to profitably increase production in the Middle East and North Africa as well as in South Asia, but may lead to increasing Costs of Food for consumers. In the long-term perspective until 2080, the consequences of climate change will become even more severe: while in 2030 56% of the global population may face increasing Costs of Food in a poor and fragmented world, in 2080 the proportion will rise to 73%.

Abstract: Climate change has impacts on agricultural yields, which could alter cropland requirements and hence deforestation rates. Thus, land-use responses to climate change might influence terrestrial carbon stocks. Moreover, climate change could alter the carbon storage capacity of the terrestrial biosphere and hence the land-based mitigation potential. We use a global spatially explicit economic land-use optimization model to (a) estimate the mitigation potential of a climate policy that provides economic incentives for carbon stock conservation and enhancement, (b) simulate land-use and carbon cycle responses to moderate climate change (RCP2.6), and (c) investigate the combined effects throughout the 21st century. The climate policy immediately stops deforestation and strongly increases afforestation, resulting in a global mitigation potential of 191 GtC in 2100. Climate change increases terrestrial carbon stocks not only directly through enhanced carbon sequestration (62 GtC by 2100) but also indirectly through less deforestation due to higher crop yields (16 GtC by 2100). However, such beneficial climate impacts increase the potential of the climate policy only marginally, as the potential is already large under static climatic conditions. In the broader picture, this study highlights the importance of land-use dynamics for modeling carbon cycle responses to climate change in integrated assessment modeling.