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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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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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Schmitz, C., Kreidenweis, U., Lotze-Campen, H., Popp, A., Krause, M., Dietrich, J. P., et al. (2014). Agricultural trade and tropical deforestation: interactions and related policy options. Reg Environ Change, 15(8), 1757–1772.
Abstract: The extensive clearing of tropical forests throughout past decades has been partly assigned to increased trade in agricultural goods. Since further trade liberalisation can be expected, remaining rainforests are likely to face additional threats with negative implications for climate mitigation and the local environment. We apply a spatially explicit economic land-use model coupled to a biophysical vegetation model to examine linkages and associated policies between trade and tropical deforestation in the future. Results indicate that further trade liberalisation leads to an expansion of deforestation in Amazonia due to comparative advantages of agriculture in South America. Globally, between 30 and 60 million ha (5-10 %) of tropical rainforests would be cleared additionally, leading to 20-40 Gt additional emissions by 2050. By applying different forest protection policies, those values could be reduced substantially. Most effective would be the inclusion of avoided deforestation into a global emissions trading scheme. Carbon prices corresponding to the concentration target of 550 ppm would prevent deforestation after 2020. Investing in agricultural productivity reduces pressure on tropical forests without the necessity of direct protection. In general, additional trade-induced demand from developed and emerging countries should be compensated by international efforts to protect natural resources in tropical regions.
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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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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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