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Climate Change and The Uncertainty of CO2 Fertilization: Possible Effects on China's Grain Trade

Author

Listed:
  • Hansen, James M.
  • Tuan, Francis C.
  • Somwaru, Agapi

Abstract

This study analyzes the potential impact of climate change and the uncertainty of CO2 fertilization on China's corn, wheat and rice domestic agricultural markets and the international markets out to the year 2050. The study provides a brief background and reviews research literature of climate change effects on China's crop yields. The paper presents the potential impact of climate change on China's yields and attempts to quantify the domestic and global market impacts. The analysis has four scenarios, which assumes two future levels of greenhouse gas emissions with the effects of CO2 fertilization and no CO2 fertilization. A 27 country commodity partial equilibrium simulation mathematical programming model (PEATSim) is used for this analysis. Results indicate under CO2 fertilization, which increases yields, China's grain imports may decrease leading to a decrease in international prices. Under no CO2 fertilization, yields decrease, China's grain imports may increase leading to increased international prices.

Suggested Citation

  • Hansen, James M. & Tuan, Francis C. & Somwaru, Agapi, 2012. "Climate Change and The Uncertainty of CO2 Fertilization: Possible Effects on China's Grain Trade," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126878, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:126878
    DOI: 10.22004/ag.econ.126878
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    File URL: http://ageconsearch.umn.edu/record/126878/files/hansen.pdf
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    References listed on IDEAS

    as
    1. You, Liangzhi & Rosegrant, Mark W. & Fang, Cheng & Wood, Stanley, 2005. "Impact of global warming on Chinese wheat productivity:," EPTD discussion papers 143, International Food Policy Research Institute (IFPRI).
    2. Wang, Jinxia & Mendelsohn, Robert & Dinar, Ariel & Huang, Jikun, 2008. "How China's farmers adapt to climate change," Policy Research Working Paper Series 4758, The World Bank.
    3. Wang, Jinxia & Mendelsohn, Robert & Dinar, Ariel & Huang, Jikun & Rozelle, Scott & Zhang, Lijuan, 2008. "Can China continue feeding itself ? the impact of climate change on agriculture," Policy Research Working Paper Series 4470, The World Bank.
    4. Jinxia Wang & Robert Mendelsohn & Ariel Dinar & Jikun Huang & Scott Rozelle & Lijuan Zhang, 2009. "The impact of climate change on China's agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 323-337, May.
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    More about this item

    Keywords

    Crop Production/Industries; Environmental Economics and Policy; International Relations/Trade;

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