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Economics of Climate Smart Agriculture: An Overview

In: Climate Smart Agriculture

Author

Listed:
  • Nancy McCarthy

    (Lead Analytics Inc.)

  • Leslie Lipper

    (ISPC-CGIAR)

  • David Zilberman

    (University of California Berkeley)

Abstract

Climate change, especially through greater frequency and intensity of climate extremes, is expected to negatively impact agriculture and food security, particularly in developing countries highly dependent on rain-fed agriculture. Promoting growth and food security must draw on the rich literature of the past 50–60 years while also addressing potential structural shifts in the factors that promote growth. This paper summarizes the economic considerations of Climate Smart Agriculture, a concept developed by the FAO to address the complex issue of how to achieve sustainable agricultural growth for food security under climate change. It addresses the lack of coherence on the CSA approach by building a formal basis of the CSA concept and methodology. We do this by posing a dynamic optimization problem wherein a social planner seeks to maximize expected discounted welfare associated with agriculture of the population they serve, both now and in the future. We analyze constraints, choices, and features of design of CSA to illustrate on the concept can be applied across a range of locations and conditions. This has implications for research, innovation, and policy design.

Suggested Citation

  • Nancy McCarthy & Leslie Lipper & David Zilberman, 2018. "Economics of Climate Smart Agriculture: An Overview," Natural Resource Management and Policy, in: Leslie Lipper & Nancy McCarthy & David Zilberman & Solomon Asfaw & Giacomo Branca (ed.), Climate Smart Agriculture, pages 31-47, Springer.
    • Handle: RePEc:spr:nrmchp:978-3-319-61194-5_3
    DOI: 10.1007/978-3-319-61194-5_3
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    Citations

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    Cited by:

    1. Maleki, Tahereh & Koohestani, Hossein & Keshavarz, Marzieh, 2022. "Can climate-smart agriculture mitigate the Urmia Lake tragedy in its eastern basin?," Agricultural Water Management, Elsevier, vol. 260(C).
    2. Germer, Leah A. & van Middelaar, Corina E. & Oosting, Simon J. & Gerber, Pierre J., 2023. "When and where are livestock climate-smart? A spatial-temporal framework for comparing the climate change and food security synergies and tradeoffs of Sub-Saharan African livestock systems," Agricultural Systems, Elsevier, vol. 210(C).
    3. Awa Sanou & John M. Kerr & Jennifer Hodbod & Lenis Saweda O. Liverpool-Tasie, 2022. "Perception and adaptation to higher temperatures among poultry farmers in Nigeria," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(12), pages 13917-13936, December.
    4. Thornton, Philip K. & Whitbread, Anthony & Baedeker, Tobias & Cairns, Jill & Claessens, Lieven & Baethgen, Walter & Bunn, Christian & Friedmann, Michael & Giller, Ken E. & Herrero, Mario & Howden, Mar, 2018. "A framework for priority-setting in climate smart agriculture research," Agricultural Systems, Elsevier, vol. 167(C), pages 161-175.
    5. Paresh B. Shirsath & Pramod K. Aggarwal, 2021. "Trade-Offs between Agricultural Production, GHG Emissions and Income in a Changing Climate, Technology, and Food Demand Scenario," Sustainability, MDPI, vol. 13(6), pages 1-13, March.
    6. Daniel Kangogo & Domenico Dentoni & Jos Bijman, 2020. "Determinants of Farm Resilience to Climate Change: The Role of Farmer Entrepreneurship and Value Chain Collaborations," Sustainability, MDPI, vol. 12(3), pages 1-15, January.
    7. Collins-Sowah, Peron A., 2018. "Theoretical conception of climate-smart agriculture," Working Papers of Agricultural Policy WP2018-02, University of Kiel, Department of Agricultural Economics, Chair of Agricultural Policy.
    8. Yari Vecchio & Giulio Paolo Agnusdei & Pier Paolo Miglietta & Fabian Capitanio, 2020. "Adoption of Precision Farming Tools: The Case of Italian Farmers," IJERPH, MDPI, vol. 17(3), pages 1-16, January.
    9. De los Santos-Montero, Luis A. & Bravo-Ureta, Boris E. & von Cramon-Taubadel, Stephan & Hasiner, Eva, 2020. "The performance of natural resource management interventions in agriculture: Evidence from alternative meta-regression analyses," Ecological Economics, Elsevier, vol. 171(C).

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