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Agricultural adaptation to climate policies under technical change

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  • Uwe A. Schneider
  • Michael Obersteiner
  • Erwin Schmid
  • Bruce A. McCarl

    ()
    (Research unit Sustainability and Global Change, Hamburg)

Abstract

This study uses a partial equilibrium model of the US agricultural sector to examine how technical progress and carbon price levels affect land management adaptation. We find that the climate policy range, over which a more extensive agriculture is preferred, decreases as crop yields increase. Second, technical progress with traditional crops offers less mitigation benefits than progress with mitigation options themselves. Third, while agricultural producers benefit from technical progress on energy crops, they fare worse if technical progress improves traditional crops and low carbon prices.

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File URL: http://www.fnu.zmaw.de/fileadmin/fnu-files/publication/working-papers/technicalprogress_climatepolicy_ASMGHG.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by Research unit Sustainability and Global Change, Hamburg University in its series Working Papers with number FNU-133.

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Length: 35 pages
Date of creation: Oct 2007
Date of revision: Jan 2008
Handle: RePEc:sgc:wpaper:133

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Related research

Keywords: Technical Change; Producer Adaptation; Agricultural Sector Model; Carbon Sequestration; Mathematical Programming; Climate Policy Simulation;

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References

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  1. Uwe A. Schneider & Bruce A. McCarl, 2003. "Implications Of A Carbon Based Energy Tax For U.S. Agriculture," Working Papers FNU-17, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2003.
  2. Uwe A. Schneider & Bruce A. McCarl, 2006. "Appraising agricultural greenhouse gas mitigation potentials: effects of alternative assumptions," Agricultural Economics, International Association of Agricultural Economists, vol. 35(3), pages 277-287, November.
  3. Heng-Chi Lee & Bruce A. McCarl, 2004. "The Dynamic Competitiveness of U.S. Agricultural and Forest Carbon Sequestration," UWO Department of Economics Working Papers 20044, University of Western Ontario, Department of Economics, revised Nov 2003.
  4. Antle, John & Capalbo, Susan & Mooney, Sian & Elliott, Edward & Paustian, Keith, 2003. "Spatial heterogeneity, contract design, and the efficiency of carbon sequestration policies for agriculture," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 231-250, September.
  5. Uwe A. Schneider & Bruce A. McCarl, 2001. "Economic Potential of Biomass-Based Fuels for Greenhouse Gas Emission Mitigation," Center for Agricultural and Rural Development (CARD) Publications 01-wp280, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  6. Michael Gallaher & K. Casey. Delhotal, 2005. "Modeling the Impact of Technical Change on Emissions Abatement Investments in Developing Countries," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 211-225, 01.
  7. Hayri ├ľnal & Bruce A. McCarl, 1991. "Exact Aggregation in Mathematical Programming Sector Models," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 319-334, 07.
  8. Alig, Ralph J. & Adams, Darius M. & McCarl, Bruce A., 1998. "Impacts Of Incorporating Land Exchanges Between Forestry And Agriculture In Sector Models," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(02), December.
  9. Lubowski, Ruben & Plantinga, Andrew & Stavins, Robert, 2005. "Land-Use Change and Carbon Sinks: Econometric Estimation of the Carbon Sequestration Supply Function," Working Paper Series rwp05-001, Harvard University, John F. Kennedy School of Government.
  10. GR Pautsch & LA Kurkalova & BA Babcock & CL Kling, 2001. "The Efficiency Of Sequestering Carbon In Agricultural Soils," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 123-134, 04.
  11. Schneider, Uwe A. & Kumar, Pushpam, 2008. "Greenhouse Gas Mitigation through Agriculture," Choices, Agricultural and Applied Economics Association, vol. 23(1).
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