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Climate Change Assessment and Agriculture in General Equilibrium Models: Alternative Modeling Strategies

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  • Ruslana Rachel Palatnik

    (Fondazione Eni Enrico Mattei)

  • Roberto Roson

    (Universitá Ca’ Foscari di Venezia)

Abstract

Agricultural sectors play a key role in the economics of climate change. Land as an input to agricultural production is one of the most important links between economy and the biosphere, representing a direct projection of human action on the natural environment. Agricultural management practices and cropping patterns have a vast effect on biogeochemical cycles, freshwater availability and soil quality. Agriculture also plays an important role in emitting and storing greenhouse gases. Thus, to consistently investigate climate policy and future pathways for the economic and natural environment, a realistic representation of agricultural land-use is essential. Computable General Equilibrium (CGE) models have increasingly been used to this purpose. CGE models simulate the simultaneous equilibrium in a set of interdependent markets, and are especially suited to analyze agricultural markets from a global perspective. However, modelling agricultural sectors in CGE models is not a trivial task, mainly because of differences in temporal and geographical aggregation scales. The aim of this study is to overview some proposed modelling strategies, by reviewing the available literature and highlighting the different trade-offs involved in the various approaches.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2009.67.

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Date of creation: Aug 2009
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Handle: RePEc:fem:femwpa:2009.67

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Keywords: Computable General Equilibrium (CGE); Partial Equilibrium (PE); Agriculture; Land Use; Climate Change;

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  1. Darwin, Roy & Tsigas, Marinos & Lewandrowski, Jan & Raneses, Anton, 1996. "Land use and cover in ecological economics," Ecological Economics, Elsevier, vol. 17(3), pages 157-181, June.
  2. Hubacek, Klaus & van den Bergh, Jeroen C.J.M., 2006. "Changing concepts of 'land' in economic theory: From single to multi-disciplinary approaches," Ecological Economics, Elsevier, vol. 56(1), pages 5-27, January.
  3. McKibbin, W.J. & Wilcoxen, P.J., 1995. "The Theoretical and Empirical Structure of the G-Cubed Model," Papers 118, Brookings Institution - Working Papers.
  4. Francesco Bosello & Jian Zhang, 2005. "Assessing Climate Change Impacts: Agriculture," Working Papers 2005.94, Fondazione Eni Enrico Mattei.
  5. Darwin, Roy & Tsigas, Marinos E. & Lewandrowski, Jan & Raneses, Anton, 1995. "World Agriculture and Climate Change: Economic Adaptations," Agricultural Economics Reports 33933, United States Department of Agriculture, Economic Research Service.
  6. Keeney, Roman & Thomas Hertel, 2005. "GTAP-AGR : A Framework for Assessing the Implications of Multilateral Changes in Agricultural Policies," GTAP Technical Papers 1869, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  7. Ianchovichina, Elena & Darwin, Roy & Shoemaker, Robbin, 2001. "Resource use and technological progress in agriculture: a dynamic general equilibrium analysis," Ecological Economics, Elsevier, vol. 38(2), pages 275-291, August.
  8. Ronneberger, Kerstin & Berrittella, Maria & Boselle, Francesco & Tol, Richard, 2008. "KLUM@GTAP: Spatially-Explicit, Biophysical Land Use in a Computable General Equilibrium Model," GTAP Working Papers 2611, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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Cited by:
  1. Alexandre Porsse & Eduardo Haddad & Paula Pereda, 2013. "Territorial Economic Impacts of Climate Anomalies in Brazil," ERSA conference papers ersa13p705, European Regional Science Association.
  2. Zhai, Fan & Lin, Tun & Byambadorj, Enerelt, 2009. "A General Equilibrium Analysis of the Impact of Climate Change on Agriculture in the People’s Republic of China," Asian Development Review, Asian Development Bank, vol. 26(1), pages 206-225.
  3. Uzma Hanif & Shabib Haider Syed & Rafique Ahmad & Kauser Abdullah Malik, 2010. "Economic Impact of Climate Change on the Agricultural Sector of Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 771–798.

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