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Impacts of Climate Change on EU Agriculture

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  • Shrestha, Shailesh
  • Ciaian, Pavel
  • Himics, Mihay
  • Van Doorslaer, Benjamin

Abstract

The current paper investigates the medium term economic impact of climate changes on the EU agriculture. The yield change data under climate change scenarios are taken from the BIOMA (Biophysical Models Application) simulation environment. We employ CAPRI modelling framework to identify the EU aggregate economic effects as well as regional impacts. We take into account supply and market price adjustments of the EU agricultural sector as well as technical adaptation of crops to climate change. Overall results indicate an increase in yields and production level in the EU agricultural sector due to the climate change. In general, there are relatively small effects at the EU aggregate. For example, the value of land use and welfare change by approximately between -2% and 0.2%. However, there is a stronger impact at regional level with some stronger effects prevailing particularly in the Central and Northern EU and smaller impacts are observed in Southern Europe. Regional impacts of climate change vary by a factor higher up to 10 relative to the aggregate EU impacts. The price adjustments reduce the response of agricultural sector to climate change in particular with respect to production and income changes. The technical adaption of crops to climate change may result in a change production and land use by a factor between 1.4 and 6 relative to no-adaptation situation.

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  • Shrestha, Shailesh & Ciaian, Pavel & Himics, Mihay & Van Doorslaer, Benjamin, 2013. "Impacts of Climate Change on EU Agriculture," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 16(2), pages 1-16, September.
    • Handle: RePEc:ags:roaaec:158096
    DOI: 10.22004/ag.econ.158096
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    1. Shrestha, Shailesh & Hennessy, Thia & Abdalla, Mohamed & Forristal, Dermot & Jones, Michael B., 2014. "Determining Short Term Responses of Irish Dairy Farms under Climate Change," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 63(03), pages 1-13, September.
    2. Shrestha, Shailesh & Hennessy, Thia & Abdalla, Mohamed & Forristal, Dermot & Jones, Michael B., 2014. "Determining Short Term Responses of Irish Dairy Farms under Climate Change," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(3).
    3. Eory, Vera & MacLeod, Michael & Shrestha, Shailesh & Roberts, David, 2014. "Linking an Economic and a Life-cycle Analysis Biophysical Model to Support Agricultural Greenhouse Gas Mitigation Policy," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 63(03), pages 1-10, September.
    4. Ewa Kiryluk-Dryjska & Agnieszka Baer-Nawrocka, 2021. "Regional Differences in Benefits from the EU Common Agricultural Policy in Poland and Their Policy Implications," Agriculture, MDPI, vol. 11(4), pages 1-14, March.
    5. Alexander Gocht & Pavel Ciaian & Maria Bielza & Jean-Michel Terres & Norbert Röder & Mihaly Himics & Guna Salputra, 2017. "EU-wide Economic and Environmental Impacts of CAP Greening with High Spatial and Farm-type Detail," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 651-681, September.
    6. Kan, Iddo & Reznik, Ami & Kaminski, Jonathan & Kimhi, Ayal, 2023. "The impacts of climate change on cropland allocation, crop production, output prices and social welfare in Israel: A structural econometric framework," Food Policy, Elsevier, vol. 115(C).
    7. CISCAR MARTINEZ Juan Carlos & FEYEN Luc & SORIA RAMIREZ Antonio & LAVALLE Carlo & PERRY Miles & RAES Frank & NEMRY Francoise & DEMIREL Hande & RÓZSAI Máté & DOSIO Alessandro & DONATELLI Marcello & SRI, 2014. "Climate Impacts in Europe. The JRC PESETA II Project," JRC Research Reports JRC87011, Joint Research Centre.
      • Ciscar, Juan-Carlos & Feyen, Luc & Soria, Antonio & Lavalle, Carlo & Raes, Frank & Perry, Miles & Nemry, Françoise & Demirel, Hande & Rozsai, Máté & Dosio, Alessandro & Donatelli, Marcello & Srivastav, 2014. "Climate Impacts in Europe - The JRC PESETA II Project," MPRA Paper 55725, University Library of Munich, Germany.
    8. Blanco, María & Ramos, Fabien & Van Doorslaer, Benjamin & Martínez, Pilar & Fumagalli, Davide & Ceglar, Andrej & Fernández, Francisco J., 2017. "Climate change impacts on EU agriculture: A regionalized perspective taking into account market-driven adjustments," Agricultural Systems, Elsevier, vol. 156(C), pages 52-66.
    9. Maria Blanco & Peter Witzke & Ignacio Perez Dominguez & Guna Salputra & Pilar Martinez, 2015. "Extension of the CAPRI model with an irrigation sub-module," JRC Research Reports JRC99828, Joint Research Centre.
    10. Fernández, Francisco J. & Blanco, Maria, 2014. "Integration of biophysical and agro-economic models to assess the economic effects of climate change on agriculture: A review of global and EU regional approaches," Economics Discussion Papers 2014-48, Kiel Institute for the World Economy (IfW Kiel).
    11. Alexander Gocht & Pavel Ciaian & Maria Bielza & Jean-Michel Terres & Norbert Röder & Mihaly Himics & Guna Salputra, 2016. "Economic and environmental impacts of CAP greening: CAPRI simulation results," JRC Research Reports JRC102519, Joint Research Centre.
    12. Martinez, Pilar & Blanco, Maria & Van Doorslaer, Benjamin & Ramos, Fabien & Stanca, Lucian, 2015. "What role does climate change play in agricultural market uncertainty? An integrated assessment taking into account market-driven adjustments," 2015 Conference, August 9-14, 2015, Milan, Italy 212230, International Association of Agricultural Economists.
    13. Syp, Alina, 2015. "Projekcja Zmian Wielkości Plonów Pszenicy W Polsce I Unii Europejskiej W Latach 2030 I 2050 Na Podstawie Modelu Capri," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2015(2), April.
    14. Zimmermann, Andrea & Webber, Heidi & Zhao, Gang & Ewert, Frank & Kros, Johannes & Wolf, Joost & Britz, Wolfgang & de Vries, Wim, 2017. "Climate change impacts on crop yields, land use and environment in response to crop sowing dates and thermal time requirements," Agricultural Systems, Elsevier, vol. 157(C), pages 81-92.
    15. Ignacio Perez Dominguez & Thomas Fellmann & Peter Witzke & Franz Weiss & Jordan Hristov & Mihaly Himics & Jesus Barreiro-Hurle & Manuel Gomez Barbero & Adrian Leip, 2020. "Economic assessment of GHG mitigation policy options for EU agriculture: A closer look at mitigation options and regional mitigation costs (EcAMPA 3)," JRC Research Reports JRC120355, Joint Research Centre.
    16. Fernández, Francisco J. & Blanco, Maria, 2015. "Modelling the economic impacts of climate change on global and European agriculture: Review of economic structural approaches," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-53.
    17. Ignacio Perez Dominguez & Thomas Fellmann, 2018. "PESETA III: Agro-economic analysis of climate change impacts in Europe," JRC Research Reports JRC113743, Joint Research Centre.
    18. Ewa Kiryluk-Dryjska & Agnieszka Baer-Nawrocka & Obinna Okereke, 2022. "The Environmental and Climatic CAP Measures in Poland vs. Farmers’ Expectations—Regional Analysis," Energies, MDPI, vol. 15(13), pages 1-13, June.
    19. Heinz-Peter Witzke & Pavel Ciaian & Jacques Delince, 2014. "CAPRI long-term climate change scenario analysis: The AgMIP approach," JRC Research Reports JRC85872, Joint Research Centre.
    20. Kiryluk-Dryjska, Ewa & Baer-Nawrocka, Agnieszka, 2019. "Reforms of the Common Agricultural Policy of the EU: Expected results and their social acceptance," Journal of Policy Modeling, Elsevier, vol. 41(4), pages 607-622.
    21. Dono, Gabriele & Cortignani, Raffaele & Dell'Unto, Davide & Deligios, Paola & Doro, Luca & Lacetera, Nicola & Mula, Laura & Pasqui, Massimiliano & Quaresima, Sara & Vitali, Andrea & Roggero, Pier Paol, 2016. "Winners and losers from climate change in agriculture: Insights from a case study in the Mediterranean basin," Agricultural Systems, Elsevier, vol. 147(C), pages 65-75.
    22. Bartova, Lubica & Konyova, Veronika, 2015. "Regional Spatial Changes in the Slovak Agriculture," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 228857, European Association of Agricultural Economists.
    23. Kan, Iddo & Kimhi, Ayal & Kaminski, Jonathan, 2015. "Climate-Change Impacts on Agriculture and Food Markets: Combining a Micro-Level Structural Land-Use Model and a Market-Level Equilibrium Model," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205128, Agricultural and Applied Economics Association.
    24. Eory, Vera & MacLeod, Michael & Shrestha, Shailesh & Roberts, David, 2014. "Linking an Economic and a Life-cycle Analysis Biophysical Model to Support Agricultural Greenhouse Gas Mitigation Policy," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(3).
    25. Sabrina Auci & Donatella Vignani, 2020. "Climate variability and agriculture in Italy: a stochastic frontier analysis at the regional level," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(2), pages 381-409, July.

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