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Effects of GHG Mitigation Policies on Livestock Sectors

Author

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  • Golub, Alla
  • Henderson, Benjamin
  • Hertel, Thomas
  • Rose, Steve
  • Avetisyan, Misak

Abstract

In this paper we have investigated effects of GHG mitigation policies on livestock sectors. We used a global computable general equilibrium GTAP-AEZ-GHG model with explicit unique regional land types, land uses and related GHG emissions. The model is then augmented with cost and GHG response information from partial equilibrium approaches to abatement of land-based greenhouse gas emissions. With this framework we analyze changes in regional livestock output, sector competitiveness and regional food consumption under different climate change mitigation policy regimes. Scenarios we have considered differ by participation/exclusion of agricultural sectors and non-Annex I countries, as well as policy instruments. The imposition of carbon tax in agriculture has adverse affects on food consumption, especially in developing countries. The reductions in food consumption are smaller if the agricultural producer subsidy is introduced to compensate for carbon tax the producers pay. The global forest carbon sequestration subsidy effectively controls emission leakage when carbon tax is imposed only in Annex I regions. The sequestration subsidy bids land away from agriculture in non-Annex 1 regions and prevents expansion of agricultural sectors. Though the sequestration subsidy allows reduction of GHG emissions, if implemented, the policy may adversely affect food security and agricultural development in developing countries.
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Suggested Citation

  • Golub, Alla & Henderson, Benjamin & Hertel, Thomas & Rose, Steve & Avetisyan, Misak, 2010. "Effects of GHG Mitigation Policies on Livestock Sectors," Conference papers 331955, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331955
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    2. Orecchia, Carlo & Parrado, Ramiro, 2013. "A Quantitative Assessment of the Implications of Including non-CO2 Emissions in the European ETS," Climate Change and Sustainable Development 162416, Fondazione Eni Enrico Mattei (FEEM).
    3. Luis Moisés Peña-Lévano & Farzad Taheripour & Wallace E. Tyner, 2019. "Correction to: Climate Change Interactions with Agriculture, Forestry Sequestration, and Food Security," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(2), pages 677-678, October.
    4. Bosello, Francesco & Orecchia, Carlo & Raitzer, David A., "undated". "Decarbonization Pathways in Southeast Asia: New Results for Indonesia, Malaysia, Philippines, Thailand and Viet Nam," MITP: Mitigation, Innovation and Transformation Pathways 250260, Fondazione Eni Enrico Mattei (FEEM).
    5. Pena-Levano, Luis M. & Taheripour, Farzad & Tyner, Wallace E., 2015. "The Economic Benefits and Costs of Mitigating Climate Change: Interactions among Carbon Tax, Forest Sequestration and Climate Change Induced Crop Yield Impacts," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205629, Agricultural and Applied Economics Association.
    6. Pena-Levano, Luis & Taheripour, Farzad & Tyner, Wally, 2020. "Cost comparison of climate change mitigation options," Conference papers 333134, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Avetisyan, Misak, 2018. "Impacts of global carbon pricing on international trade, modal choice and emissions from international transport," Energy Economics, Elsevier, vol. 76(C), pages 532-548.
    8. Huang, Hsin & von Lampe, Martin & van Tongeren, Frank, 2011. "Climate change and trade in agriculture," Food Policy, Elsevier, vol. 36(Supplemen), pages 9-13, January.
    9. Muhammad Aamir Khan & Alishba Tahir & Nabila Khurshid & Muhammad Iftikhar ul Husnain & Mukhtar Ahmed & Houcine Boughanmi, 2020. "Economic Effects of Climate Change-Induced Loss of Agricultural Production by 2050: A Case Study of Pakistan," Sustainability, MDPI, vol. 12(3), pages 1-17, February.
    10. Bosello, Francesco & Marangoni, Giacomo & Orecchia, Carlo & Raitzer, David A. & Tavoni, Massimo, "undated". "The Cost of Climate Stabilization in Southeast Asia, a Joint Assessment with Dynamic Optimization and CGE Models," MITP: Mitigation, Innovation and Transformation Pathways 251810, Fondazione Eni Enrico Mattei (FEEM).
    11. Bosello, Francesco & Orecchia, Carlo & Parrado, Ramiro, 2013. "The additional contribution of non-CO2 mitigation in climate policy costs and efforts in Europe," Conference papers 332363, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Pena-Levano, Luis M. & Taheripour, Farzad & Tyner, Wallace E., "undated". "Cost comparison of climate change mitigation options," 2018 Annual Meeting, August 5-7, Washington, D.C. 274406, Agricultural and Applied Economics Association.
    13. Khellaf, Ayache & Nihou, Abdelaziz & Baray, Abdoul G. & van der Mensbrugghe, Dominique & Liverani, Andrea & Tyner, Wallace E., 2014. "Socioeconomic impacts of green energy growth policy in Morocco - a general equilibrium analysis," Conference papers 332493, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Melania Michetti & Matteo Zampieri, 2014. "Climate–Human–Land Interactions: A Review of Major Modelling Approaches," Land, MDPI, vol. 3(3), pages 1-41, July.
    15. Michetti, Melania & Parrado, Ramiro, "undated". "Improving land-use modelling within CGE to assess forest-based mitigation potential and costs," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124887, Agricultural and Applied Economics Association.

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