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Dono, G., Raffaele, C., Luca, G., & Roggero, P. P. (2014). Income Impacts of Climate Change: Irrigated Farming in the Mediterranean and Expected Changes in Probability of Favorable and Adverse Weather Conditions. German Journal of Agricultural Economics, 63(3), 177–186.
Abstract: EU rural development policy (RDP) regulation 1305/2013 aims to protect farmers’ incomes from ongoing change of climate variability (CCV), and the increase in frequency of adverse climatic events. An income stabilization tool (IST) is provided to compensate drastic drops in income, including those caused by climatic events. The present study examines some aspect of its application focussing on Mediterranean irrigation area where frequent water shortages may generate significant income reductions in the current climate conditions, and may be further exacerbated by climate change. This enhanced loss of income in the future would occur due to a change in climate variability. This change would appreciably reduce the probability of weather conditions that are favourable for irrigation, but would not significantly increase either the probability of unfavourable weather conditions or the magnitude of their impact. As the IST and other insurance tools that protect against adversity and catastrophic events are only activated under extreme conditions, farmers may not consider them to be suitable in dealing with the new climate regime. This would leave a portion of the financial resources allocated by the RDP unused, resulting in less support for climate change adaptation.
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Dono, G., Cortignani, R., Dell’Unto, D., Deligios, P., Doro, L., Lacetera, N., et al. (2016). Winners and losers from climate change in agriculture: Insights from a case study in the Mediterranean basin. Agricultural Systems, 147, 65–75.
Abstract: The Mediterranean region has always shown a marked inter-annual variability in seasonal weather, creating uncertainty in decisional processes of cultivation and livestock breeding that should not be neglected when modeling farmers’ adaptive responses. This is especially relevant when assessing the impact of climate change (CC), which modifies the atmospheric variability and generates new uncertainty conditions, and the possibility of adaptation of agriculture. Our analysis examines this aspect reconstructing the effects of inter-annual climate variability in a diversified farming district that well represents a wide range of rainfed and irrigated agricultural systems in the Mediterranean area. We used a Regional Atmospheric Modelling System and a weather generator to generate 150 stochastic years of the present and near future climate. Then, we implemented calibrated crop and livestock models to estimate the corresponding productive responses in the form of probability distribution functions (PDFs) under the two climatic conditions. We assumed these PDFs able to represent the expectations of farmers in a discrete stochastic programming (DSP) model that reproduced their economic behaviour under uncertainty conditions. The comparison of the results in the two scenarios provided an assessment of the impact of CC, also taking into account the possibility of adjustment allowed by present technologies and price regimes. The DSP model is built in blocks that represent the farm typologies operating in the study area, each one with its own resource endowment, decisional constraints and economic response. Under this latter aspect, major differences emerged among farm typologies and sub-zones of the study area. A crucial element of differentiation was water availability, since only irrigated C3 crops took full advantage from the fertilization effect of increasing atmospheric CO2 concentration. Rainfed crop production was depressed by the expected reduction of spring rainfall associated to the higher temperatures. So, a dualism emerges between the smaller impact on crop production in the irrigated plain sub-zone, equipped with collective water networks and abundant irrigation resources, and the major negative impact in the hilly area, where these facilities and resources are absent. However intensive dairy farming was also negatively affected in terms of milk production and quality, and cattle mortality because of the increasing summer temperatures. This provides explicit guidance for addressing strategic adaptation policies and for framing farmers’ perception of CC, in order to help them to develop an awareness of the phenomena that are already in progress, which is a prerequisite for effective adaptation responses.
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Cortignani, R., & Dono, G. (2018). Agricultural policy and climate change: An integrated assessment of the impacts on an agricultural area of Southern Italy. Environ. Sci. Pol., 81, 26–35.
Abstract: The European Union (EU) has recently reformed its Common Agricultural Policy (CAP) and, in parallel, has completely abolished the production quotas for milk. These changes will have important consequences for the use of land, of inputs (i.e., water and chemicals) and on the economic performance of rural areas. It is of interest to evaluate the integrated impact of these modifications and of climate change (CC), since the latter could neutralize or reverse some desired effects of the former. For this purpose, this paper evaluates the potential impact of the abolition of milk quotas, as well as of the reform of the first pillar of CAP in two different climate scenarios (present and near future). A bio-economic model simulates the possible adaptation of various farm types in an agricultural area of Southern Italy to these changes, given the available technological options and current market conditions. The main results show that the considered policy changes have small positive impacts on economic and environmental factors of the study area. However, some farm types are more affected. CC can effectively attenuate or reverse several of those effects, especially in some farm types. These results can inform the planning of future changes to the CAP, which will have to act in the context of deeper climate alteration.
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Dono, G. (2015). The economic impact of changes in climate variability on milk production in the area of Grana Padano (Vol. 5).
Abstract: Climate variability (CV) normally influences production and farm management, and climate change (CC) has precisely the effect of changing this variability. Thus, models that estimate the economic impact of CC, integrating with climatic models, agronomic, and livestock, must represent the implications of this variability on farm management. This study describes an economic model based on Discrete Stochastic Programming (DSP) which assesses the impact of CC on milk production in the Grana Padano area. The model is based on 23 farm typologies from FADN that represent 856 farms in Piacenza and Cremona, two of the most important provinces for Grana Padano production. The results of the model were projected at the regional scale. The climate scenarios, current and future, are generated with a Regional Atmospheric Modeling System. The forage production under these scenarios is estimated with the EPIC agronomic model. Estimates on milk production and livestock mortality are based on studies conducted in the Po valley. The nutritional needs of the cattle are estimated with the CNCPS model. Probability distribution functions (PDF) express the relations between the CV and the productive variables under both climate scenarios. These PDFs represent the expectations of farmers on the productive-climate variability in the DSP model, which is PMP calibrated based on land distribution observed in a reference year. Comparing the model results in the two scenarios indicates the effects of CC, given the opportunity to adapt the use of resources and techniques of cultivation. The structure of the model, and its economic results are presented and discussed, along with the strengths and weaknesses of this approach. No Label
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Dono, G. (2015). Climate change impact on production and income of Mediterranean farming systems: a case study (Vol. 5).
Abstract: Adaptation to climate change calls for local responses. The impact of a 2020-30 climate scenario was assessed on a 54,000 ha Mediterranean district characterized by a variety of farming systems (FS), ranging from low-input rainfed (42% of the district area and 16% of the district net income) to high-input irrigated. Climate was generated with a Regional Atmospheric Modelling System nested into a full coupled atmosphere-ocean global simulation model, under the A1B emission scenario. Crop responses to climate were assessed using EPIC after calibration. The Temperature Humidity Index was used to assess the impact on dairy cow milk yield. Farmer choices were simulated on 13 representative FS by an hybrid model of supply, territory and farm. The adaptive choices were simulated through Discrete Stochastic Programming, fed by probability distribution functions output of crop and animal models. The expected decrease in spring rainfall (-33%) will affect hay-crop production and the net income (NI) of rainfed livestock farms (-5 to -12%). The increased summer temperature will affect dairy cows NI up to -5.9%. Rice production is expected to increase up to +10%. Overall, the NI of irrigated and rainfed farms will be -2.1% and -5.4% of the current NI respectively, with livestock FS being the most affected and rice and horticultural FS the most resilient. Results will provide an ideal mediating object for engaging policy makers and stakeholders in designing visionary adaptive strategies. No Label
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