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Nelson, G. C., van der Mensbrugghe, D., Ahammad, H., Blanc, E., Calvin, K., Hasegawa, T., et al. (2014). Agriculture and climate change in global scenarios: why don’t the models agree. Agric. Econ., 45(1), 85–101.
Abstract: Agriculture is unique among economic sectors in the nature of impacts from climate change. The production activity that transforms inputs into agricultural outputs involves direct use of weather inputs (temperature, solar radiation available to the plant, and precipitation). Previous studies of the impacts of climate change on agriculture have reported substantial differences in outcomes such as prices, production, and trade arising from differences in model inputs and model specification. This article presents climate change results and underlying determinants from a model comparison exercise with 10 of the leading global economic models that include significant representation of agriculture. By harmonizing key drivers that include climate change effects, differences in model outcomes were reduced. The particular choice of climate change drivers for this comparison activity results in large and negative productivity effects. All models respond with higher prices. Producer behavior differs by model with some emphasizing area response and others yield response. Demand response is least important. The differences reflect both differences in model specification and perspectives on the future. The results from this study highlight the need to more fully compare the deep model parameters, to generate a call for a combination of econometric and validation studies to narrow the degree of uncertainty and variability in these parameters and to move to Monte Carlo type simulations to better map the contours of economic uncertainty.
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Lotze-Campen, H., von Lampe, M., Kyle, P., Fujimori, S., Havlik, P., van Meijl, H., et al. (2014). Impacts of increased bioenergy demand on global food markets: an AgMIP economic model intercomparison. Agric. Econ., 45(1), 103–116.
Abstract: Integrated Assessment studies have shown that meeting ambitious greenhouse gas mitigation targets will require substantial amounts of bioenergy as part of the future energy mix. In the course of the Agricultural Model Intercomparison and Improvement Project (AgMIP), five global agro-economic models were used to analyze a future scenario with global demand for ligno-cellulosic bioenergy rising to about 100 ExaJoule in 2050. From this exercise a tentative conclusion can be drawn that ambitious climate change mitigation need not drive up global food prices much, if the extra land required for bioenergy production is accessible or if the feedstock, for example, from forests, does not directly compete for agricultural land. Agricultural price effects across models by the year 2050 from high bioenergy demand in an ambitious mitigation scenario appear to be much smaller (+5% average across models) than from direct climate impacts on crop yields in a high-emission scenario (+25% average across models). However, potential future scarcities of water and nutrients, policy-induced restrictions on agricultural land expansion, as well as potential welfare losses have not been specifically looked at in this exercise.
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Biewald, A., Rolinski, S., Lotze-Campen, H., Schmitz, C., & Dietrich, J. P. (2014). Valuing the impact of trade on local blue water. Ecol. Econ., 101, 43–53.
Abstract: International trade of agricultural goods impacts local water scarcity. By quantifying the effect of trade on crop production on grid-cell level and combining it with cell- and crop-specific virtual water contents, we are able to determine green and blue water consumption and savings. Connecting the information on trade-related blue water usage to water shadow prices gives us the possibility to value the impact of international food crop trade on local blue water resources. To determine the trade-related value of the blue water usage, we employ two models: first, an economic land- and water-use model, simulating agricultural trade, production and water-shadow prices and second, a global vegetation and agricultural model, modeling the blue and green virtual water content of the traded crops. Our study found that globally, the international trade of food crops saves blue water worth 2.4 billion US$. This net saving occurs despite the fact that Europe exports virtual blue water in food crops worth 3.1 billion US$. Countries in the Middle East and South Asia profit from trade by importing water intensive crops, countries in Southern Europe on the other hand export water intensive agricultural goods from water scarce sites, deteriorating local water scarcity. (C) 2014 Elsevier B.V. All rights reserved.
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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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Weindl, I., Lotze-Campen, H., Popp, A., Müller, C., Havlík, P., Herrero, M., et al. (2015). Livestock in a changing climate: production system transitions as an adaptation strategy for agriculture. Environ. Res. Lett., 10(9), 094021.
Abstract: Livestock farming is the world’s largest land use sector and utilizes around 60% of the global biomass harvest. Over the coming decades, climate change will affect the natural resource base of livestock production, especially the productivity of rangeland and feed crops. Based on a comprehensive impact modeling chain, we assess implications of different climate projections for agricultural production costs and land use change and explore the effectiveness of livestock system transitions as an adaptation strategy. Simulated climate impacts on crop yields and rangeland productivity generate adaptation costs amounting to 3% of total agricultural production costs in 2045 (i.e. 145 billion US$). Shifts in livestock production towards mixed crop-livestock systems represent a resource-and cost-efficient adaptation option, reducing agricultural adaptation costs to 0.3% of total production costs and simultaneously abating deforestation by about 76 million ha globally. The relatively positive climate impacts on grass yields compared with crop yields favor grazing systems inter alia in South Asia and North America. Incomplete transitions in production systems already have a strong adaptive and cost reducing effect: a 50% shift to mixed systems lowers agricultural adaptation costs to 0.8%. General responses of production costs to system transitions are robust across different global climate and crop models as well as regarding assumptions on CO2 fertilization, but simulated values show a large variation. In the face of these uncertainties, public policy support for transforming livestock production systems provides an important lever to improve agricultural resource management and lower adaptation costs, possibly even contributing to emission reduction.
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