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Modeling the Impacts of Agricultural Support Policies on Emissions from Agriculture

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Listed:
  • David Laborde
  • Abdullah Mamun
  • Will Martin
  • Valeria Piñeiro
  • Rob Vos

Abstract

To understand the impacts of support programs on global emissions, this paper considers the impacts of domestic subsidies, price distortions at the border, and investments in emission-reducing technologies on global greenhouse gas (GHG) emissions from agriculture. In a step towards a full evaluation of the impacts, it uses a counterfactual global model scenario showing how much emissions from agricultural production would change if agricultural support were abolished worldwide. The analysis indicates that, without subsidies paid directly to farmers, output of some emission-intensive activities and agricultural emissions would be smaller. Without agricultural trade protection, however, emissions would be higher. This is partly because protection reduces global demand more than it increases global agricultural supply, and partly because some countries that currently tax agriculture have high emission intensities. Policies that directly reduce emission intensities yield much larger reductions in emissions than those that reduce emission intensities by increasing overall productivity because overall productivity growth creates a rebound effect by reducing product prices and expanding output. A key challenge is designing policy reforms that effectively reduce emissions without jeopardizing other key goals such as improving nutrition and reducing poverty. This analysis is an important building block towards a full understanding the impacts of reforms to agricultural support on mitigation of greenhouse gas emissions and adaptation to climate change. That full analysis is being undertaken in current work incorporating land use changes and examining the impacts of specific reforms on mitigation, resilience and economic outcomes.

Suggested Citation

  • David Laborde & Abdullah Mamun & Will Martin & Valeria Piñeiro & Rob Vos, 2020. "Modeling the Impacts of Agricultural Support Policies on Emissions from Agriculture," NBER Working Papers 27202, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:27202
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    Cited by:

    1. Balie, Jean & Valera, Harold Glenn A. & Narayanan Gopalakrishnan, Badri & Pede, Valerien O., 2021. "The impacts of reforming agricultural policy support on cereal prices: A CGE modeling approach," 2021 Annual Meeting, August 1-3, Austin, Texas 313939, Agricultural and Applied Economics Association.
    2. Martin, Will, 2021. "Tools for measuring the full impacts of agricultural interventions," IFPRI-MCC technical papers 2, International Food Policy Research Institute (IFPRI).
    3. Gaupp, F. & Ruggeri Laderchi, C. & Lotze-Campen, H. & DeClerck, F. & Bodirsky, B. L. & Lowder, S. & Popp, A. & Kanbur, R. & Edenhofer, O. & Nugent, R. & Fanzo, J. & Dietz, S. & Nordhagen, S. & Fan, S., 2021. "Food system development pathways for healthy, nature-positive and inclusive food systems," LSE Research Online Documents on Economics 113421, London School of Economics and Political Science, LSE Library.
    4. Diaz-Bonilla, Eugenio & McNamara, Brian & Njuki, Jemimah & Swinnen, Johan & Vos, Rob, 2022. "The UN Food Systems Summit 2021: Lessons of the Gender and Finance Levers," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322751, Agricultural and Applied Economics Association.

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    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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