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Gutierrez, L., Piras, F., & Roggero, P. P. (2015). A global vector autoregression model for the analysis of wheat export prices. American Journal of Agricultural Economics, 97(5), 1494–1511.
Abstract: Food commodity price fluctuations have an important impact on poverty and food insecurity across the world. Conventional models have not provided a complete picture of recent price spikes in agricultural commodity markets, and there is an urgent need for appropriate policy responses. Perhaps new approaches are needed to better understand international spill-overs, the feedback between the real and the financial sectors, as well as the link between food and energy prices. In this article, we present the results from a new worldwide dynamic model that provides the short and long-run impulse responses of the international wheat price to various real and financial shocks.
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Lehtonen, H. (2015). Evaluating adaptation and the production development of Finnish agriculture in climate and global change. Agricultural and Food Science, 24(3), 219–234.
Abstract: Agricultural product prices and policies influence the development of crop yields under climate change through farm level management decisions. On this basis, five main scenarios were specified for agricultural commodity prices and crop yields. An economic agricultural sector model was used in order to assess the impacts of the scenarios on production, land use and farm income in Finland. The results suggest that falling crop yields, if realized due to low prices and restrictive policies, will result in decreasing crop and livestock production and increasing nutrient surplus. Slowly increasing crop yields could stabilise production and increase farm income. Significantly higher crop prices and yields are required, however, for any marked increase in production in Finland. Cereals production would increase relatively more than livestock production, if there were high prices for agricultural products. This is explained by abundant land resources, a high opportunity cost of labour and policies maintaining current dairy and beef production.
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Liu, X., Lehtonen, H., Purola, T., Pavlova, Y., Rötter, R., & Palosuo, T. (2016). Dynamic economic modelling of crop rotations with farm management practices under future pest pressure. Agricultural Systems, 144, 65–76.
Abstract: Agricultural practice is facing multiple challenges under volatile commodity markets, inevitable climate change, mounting pest pressure and various other environment-related constraints. The objective of this research is to present a dynamic optimization model of crop rotations and farm management and show its suitability for economic analysis over a 30 year time period. In this model, we include management practices such as fertilization, fungicide treatment and liming, and apply it in a region in Southwestern Finland. Results show that (i) growing pest pressure favours the cultivation of wheat-oats and wheat-oilseeds combinations, while (ii) market prices largely determine the crops in the rotation plan and the specific management practices adopted. The flexibility of our model can also be utilized in evaluating the value of other management options such as new cultivars under different projections of future climate and market conditions.
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Milford, A. B., Le Mouel, C., Bodirsky, B. L., & Rolinski, S. (2019). Drivers of meat consumption. Appetite, 141, Unsp 104313.
Abstract: Increasing global levels of meat consumption are a threat to the environment and to human health. To identify measures that may change consumption patterns towards more plant-based foods, it is necessary to improve our understanding of the causes behind the demand for meat. In this paper we use data from 137 different countries to identify and assess factors that influence meat consumption at the national level using a cross-country multivariate regression analysis. We specify either total meat or ruminant meat as the dependent variable and we consider a broad range of potential drivers of meat consumption. The combination of explanatory variables we use is new for this type of analysis. In addition, we estimate the relative importance of the different drivers. We find that income per capita followed by rate of urbanisation are the two most important drivers of total meat consumption per capita. Income per capita and natural endowment factors are major drivers of ruminant meat consumption per capita. Other drivers are Western culture, Muslim religion, female labour participation, economic and social globalisation and meat prices. The main identified drivers of meat demand are difficult to influence through direct policy intervention. Thus, acting indirectly on consumers’ preferences and consumption habits (for instance through information, education policy and increased availability of ready-made plant based products) could be of key importance for mitigating the rise of meat consumption per capita all over the world.
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Popp, A., Calvin, K., Fujimori, S., Havlik, P., Humpenöder, F., Stehfest, E., et al. (2017). Land-use futures in the shared socio-economic pathways. Glob. Environ. Change, 42, 331–345.
Abstract: • Narratives for the Shared Socio-Economic Pathways (SSPs) focusing on the land sector are presented. • Integrated Assessment Models have been applied for the SSPs to assess potential future developments for land use, greenhouse gas emissions, food provision and prices. • Model results reflect the general storylines of the SSPs and indicate a broad range of potential land-use futures. • SSP-based land use pathways aim at supporting future climate research, climate impact analysis, biodiversity research and sustainability science. Abstract In the future, the land system will be facing new intersecting challenges. While food demand, especially for resource-intensive livestock based commodities, is expected to increase, the terrestrial system has large potentials for climate change mitigation through improved agricultural management, providing biomass for bioenergy, and conserving or even enhancing carbon stocks of ecosystems. However, uncertainties in future socio-economic land use drivers may result in very different land-use dynamics and consequences for land-based ecosystem services. This is the first study with a systematic interpretation of the Shared Socio-Economic Pathways (SSPs) in terms of possible land-use changes and their consequences for the agricultural system, food provision and prices as well as greenhouse gas emissions. Therefore, five alternative Integrated Assessment Models with distinctive land-use modules have been used for the translation of the SSP narratives into quantitative projections. The model results reflect the general storylines of the SSPs and indicate a broad range of potential land-use futures with global agricultural land of 4900 mio ha in 2005 decreasing by 743 mio ha until 2100 at the lower (SSP1) and increasing by 1080 mio ha (SSP3) at the upper end. Greenhouse gas emissions from land use and land use change, as a direct outcome of these diverse land-use dynamics, and agricultural production systems differ strongly across SSPs (e.g. cumulative land use change emissions between 2005 and 2100 range from −54 to 402 Gt CO2). The inclusion of land-based mitigation efforts, particularly those in the most ambitious mitigation scenarios, further broadens the range of potential land futures and can strongly affect greenhouse gas dynamics and food prices. In general, it can be concluded that low demand for agricultural commodities, rapid growth in agricultural productivity and globalized trade, all most pronounced in a SSP1 world, have the potential to enhance the extent of natural ecosystems, lead to lowest greenhouse gas emissions from the land system and decrease food prices over time. The SSP-based land use pathways presented in this paper aim at supporting future climate research and provide the basis for further regional integrated assessments, biodiversity research and climate impact analysis.
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