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Valuation of Linkages between Climate Change, Biodiversity and Productivity of European Agro-Ecosystems

Author

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  • Ruslana Rachel Palatnik

    (FEEM, Department of Economics, the Max Stern Academic College of Emek Yezreel Israel, NRERC- Natural Resource and Environmental Research Center, University of Haifa)

  • Paulo A.L.D. Nunes

    (FEEM and Center for Environmental Economics and Management, Department of Economics, Ca’ Foscari University of Venice)

Abstract

It is clear that climate change involves changes in temperature and precipitation and therefore directly affects land productivity. However, this is not the only channel for climatic change to affect agro-systems. Biodiversity is subject to climatic fluctuations and in turn may alter land productivity too. Firstly, biodiversity is an input into agro-ecosystems. Secondly, biodiversity supports the functioning of these systems (e.g. the balancing of the nutrient cycle). Thirdly, agro-systems also host important wildlife species which, though not always, play a functional role in land productivity, nonetheless constitute important sources of landscape amenities. The present paper illustrates a unique attempt to economically assess this additional effect climate change may imply on agriculture. We first empirically evaluate changes in land productivity due to climatic change effect on temperature, precipitations and biodiversity. Then we estimate the economic cost of biodiversity impact on agro-systems. Our key finding is that climate-change-induced biodiversity impact on European agro-systems measured in terms of GDP change in year 2050 is sufficiently large to deepen the direct climate-change effect in some regions and to reverse it in others. Different economies show different resilience profiles to deal with this effect.

Suggested Citation

  • Ruslana Rachel Palatnik & Paulo A.L.D. Nunes, 2010. "Valuation of Linkages between Climate Change, Biodiversity and Productivity of European Agro-Ecosystems," Working Papers 2010.138, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2010.138
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    References listed on IDEAS

    as
    1. Massimo Tavoni & Shoibal Chakravarty & Robert Socolow, 2012. "Safe vs. Fair: A Formidable Trade-off in Tackling Climate Change," Sustainability, MDPI, Open Access Journal, vol. 4(2), pages 1-17, February.
    2. Francesco Bosello & Carlo Carraro & Enrica De Cian, 2010. "Climate Policy and the Optimal Balance between Mitigation, Adaptation and Unavoided Damage," Working Papers 2010.32, Fondazione Eni Enrico Mattei.
    3. Valentina Bosetti, Carlo Carraro, Marzio Galeotti, Emanuele Massetti, Massimo Tavoni, 2006. "A World induced Technical Change Hybrid Model," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 13-38.
    4. Valentina Bosetti & Emanuele Massetti & Massimo Tavoni, 2007. "The WITCH Model. Structure, Baseline, Solutions," Working Papers 2007.10, Fondazione Eni Enrico Mattei.
    5. Rob Dellink & Gregory Briner & Christa Clapp, 2010. "Costs, Revenues, and Effectiveness of the Copenhagen Accord Emission Pledges for 2020," OECD Environment Working Papers 22, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Climate Change; Biodiversity; Agro-Ecosystems;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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