Abstract: The current paper aims to determine regional impacts of climate change on Irish farms examining the variation in farm responses. A set of crop growth models were used to determine crop and grass yields under a baseline scenario and a future climate scenario. These crop and grass yields were used along with farm-level data taken from the Irish National Farm Survey in an optimizing farm-level (farm-level linear programming) model, which maximizes farm profits under limiting resources. A change in farm net margins under the climate change scenario compared to the baseline scenario was taken as a measure to determine the effect of climate change on farms. The growth models suggested a decrease in cereal crop yields (up to 9%) but substantial increase in yields of forage maize (up to 97%) and grass (up to 56%) in all regions. Farms in the border, midlands and south-east regions suffered, whereas farms in all other regions generally fared better under the climate change scenario used in the current study. The results suggest that there is a regional variability between farms in their responses to the climate change scenario. Although substituting concentrate feed with grass feeds is the main adaptation on all livestock farms, the extent of such substitution differs between farms in different regions. For example, large dairy farms in the south-east region adopted total substitution of concentrate feed while similar dairy farms in the south-west region opted to replace only 0.30 of concentrate feed. Farms in most of the regions benefitted from increasing stocking rate, except for sheep farms in the border and dairy farms in the south-east regions. The tillage farms in the mid-east region responded to the climate change scenario by shifting arable production to beef production on farms.

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.