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Robinson, S., van Meijl, H., Willenbockel, D., Valin, H., Fujimori, S., Masui, T., et al. (2014). Comparing supply-side specifications in models of global agriculture and the food system. Agric. Econ., 45(1), 21–35.
Abstract: This article compares the theoretical and functional specification of production in partial equilibrium (PE) and computable general equilibrium (CGE) models of the global agricultural and food system included in the AgMIP model comparison study. The two model families differ in their scopepartial versus economy-wideand in how they represent technology and the behavior of supply and demand in markets. The CGE models are deep structural models in that they explicitly solve the maximization problem of consumers and producers, assuming utility maximization and profit maximization with production/cost functions that include all factor inputs. The PE models divide into two groups on the supply side: (1) shallow structural models, which essentially specify area/yield supply functions with no explicit maximization behavior, and (2) deep structural models that provide a detailed activity-analysis specification of technology and explicit optimizing behavior by producers. While the models vary in their specifications of technology, both within and between the PE and CGE families, we consider two stylized theoretical models to compare the behavior of crop yields and supply functions in CGE models with their behavior in shallow structural PE models. We find that the theoretical responsiveness of supply to changes in prices can be similar, depending on parameter choices that define the behavior of implicit supply functions over the domain of applicability defined by the common scenarios used in the AgMIP comparisons. In practice, however, the applied models are more complex and differ in their empirical sensitivity to variations in specificationcomparability of results given parameter choices is an empirical question. To illustrate the issues, sensitivity analysis is done with one global CGE model, MAGNET, to indicate how the results vary with different specification of technical change, and how they compare with the results from PE models.
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Humpenöder, F., Popp, A., Dietrich, J. P., Klein, D., Lotze-Campen, H., Bonsch, M., et al. (2014). Investigating afforestation and bioenergy CCS as climate change mitigation strategies. Environ. Res. Lett., 9(6), 064029.
Abstract: The land-use sector can contribute to climate change mitigation not only by reducing greenhouse gas (GHG) emissions, but also by increasing carbon uptake from the atmosphere and thereby creating negative CO2 emissions. In this paper, we investigate two land-based climate change mitigation strategies for carbon removal: (1) afforestation and (2) bioenergy in combination with carbon capture and storage technology (bioenergy CCS). In our approach, a global tax on GHG emissions aimed at ambitious climate change mitigation incentivizes land-based mitigation by penalizing positive and rewarding negative CO2 emissions from the land-use system. We analyze afforestation and bioenergy CCS as standalone and combined mitigation strategies. We find that afforestation is a cost-efficient strategy for carbon removal at relatively low carbon prices, while bioenergy CCS becomes competitive only at higher prices. According to our results, cumulative carbon removal due to afforestation and bioenergy CCS is similar at the end of 21st century (600-700 GtCO(2)), while land-demand for afforestation is much higher compared to bioenergy CCS. In the combined setting, we identify competition for land, but the impact on the mitigation potential (1000 GtCO(2)) is partially alleviated by productivity increases in the agricultural sector. Moreover, our results indicate that early-century afforestation presumably will not negatively impact carbon removal due to bioenergy CCS in the second half of the 21st century. A sensitivity analysis shows that land-based mitigation is very sensitive to different levels of GHG taxes. Besides that, the mitigation potential of bioenergy CCS highly depends on the development of future bioenergy yields and the availability of geological carbon storage, while for afforestation projects the length of the crediting period is crucial.
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Popp, A., Humpenöder, F., Weindl, I., Bodirsky, B. L., Bonsch, M., Lotze-Campen, H., et al. (2014). Land-use protection for climate change mitigation. Nat. Clim. Change, 4(12), 1095–1098.
Abstract: Land-use change, mainly the conversion of tropical forests to agricultural land, is a massive source of carbon emissions and contributes substantially to global warming(1-3). Therefore, mechanisms that aim to reduce carbon emissions from deforestation are widely discussed, A central challenge is the avoidance of international carbon leakage if forest conservation is not implemented globally’’, Here, We show that forest conservation schemes, even if implemented globally, could lead to another type of carbon leakage by driving cropland expansion in non-forested areas that are not subject to forest conservation schemes (non-forest leakage). These areas have a smaller. but still considerable potential to store carbon(5,6). We show that a global forest policy could reduce carbon emissions by 77 Gt CO2, but would still allow for decreases in carbon stocks of non-forest land by 96 Gt CO2, until 2100 due to non-forest leakage effects. Furthermore; abandonment of agricultural hand and associated carbon uptake through vegetation regrowth is hampered. Effective mitigation measures thus require financing structures and conservation investments that cover the full range of carbon-rich ecosystems. However, our analysis indicates that greater agricultural productivity increases would be needed to compensate for such restrictions on agricultural expansion.
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Klein, D., Luderer, G., Kriegler, E., Strefler, J., Bauer, N., Leimbach, M., et al. (2014). The value of bioenergy in low stabilization scenarios: an assessment using REMIND-MAgPIE. Clim. Change, 123(3-4), 705–718.
Abstract: This study investigates the use of bioenergy for achieving stringent climate stabilization targets and it analyzes the economic drivers behind the choice of bioenergy technologies. We apply the integrated assessment framework REMIND-MAgPIE to show that bioenergy, particularly if combined with carbon capture and storage (CCS) is a crucial mitigation option with high deployment levels and high technology value. If CCS is available, bioenergy is exclusively used with CCS. We find that the ability of bioenergy to provide negative emissions gives rise to a strong nexus between biomass prices and carbon prices. Ambitious climate policy could result in bioenergy prices of 70 $/GJ (or even 430 $/GJ if bioenergy potential is limited to 100 EJ/year), which indicates a strong demand for bioenergy. For low stabilization scenarios with BECCS availability, we find that the carbon value of biomass tends to exceed its pure energy value. Therefore, the driving factor behind investments into bioenergy conversion capacities for electricity and hydrogen production are the revenues generated from negative emissions, rather than from energy production. However, in REMIND modern bioenergy is predominantly used to produce low-carbon fuels, since the transport sector has significantly fewer low-carbon alternatives to biofuels than the power sector. Since negative emissions increase the amount of permissible emissions from fossil fuels, given a climate target, bioenergy acts as a complement to fossils rather than a substitute. This makes the short-term and long-term deployment of fossil fuels dependent on the long-term availability of BECCS.
Keywords: land-use change; bio-energy; greenhouse gases; carbon-dioxide; climate-change; constraints; emissions; economics; storage; costs
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Dietrich, J. P., Schmitz, C., Lotze-Campen, H., Popp, A., & Müller, C. (2014). Forecasting technological change in agriculture—An endogenous implementation in a global land use model. Technological Forecasting and Social Change, 81, 236–249.
Abstract: ► Endogenous technological change in an economic land use model ► Estimation of yield elasticity with respect to investments in technological change ► Projections of future agricultural productivity rates ► Validation with observed data and historic trends ► Trade-off between required technological change and forest protection objectives Technological change in agriculture plays a decisive role for meeting future demands for agricultural goods. However, up to now, agricultural sector models and models on land use change have used technological change as an exogenous input due to various information and data deficiencies. This paper provides a first attempt towards an endogenous implementation based on a measure of agricultural land use intensity. We relate this measure to empirical data on investments in technological change. Our estimated yield elasticity with respect to research investments is 0.29 and production costs per area increase linearly with an increasing yield level. Implemented in the global land use model MAgPIE (“Model of Agricultural Production and its Impact on the Environment”) this approach provides estimates of future yield growth. Highest future yield increases are required in Sub-Saharan Africa, the Middle East and South Asia. Our validation with FAO data for the period 1995–2005 indicates that the model behavior is in line with observations. By comparing two scenarios on forest conservation we show that protecting sensitive forest areas in the future is possible but requires substantial investments into technological change.
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