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Effects of the GHG Mitigation Policies on Livestock Sectors


  • Golub, Alla
  • Henderson, Ben
  • Hertel, Thomas
  • Rose, Steven
  • Avetisyan, Misak
  • Sohngen, Brent


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.

Suggested Citation

  • Golub, Alla & Henderson, Ben & Hertel, Thomas & Rose, Steven & Avetisyan, Misak & Sohngen, Brent, 2010. "Effects of the GHG Mitigation Policies on Livestock Sectors," GTAP Working Papers 3427, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  • Handle: RePEc:gta:workpp:3427
    Note: GTAP Working Paper No. 62

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    Cited by:

    1. Carlo Orecchia & Ramiro Parrado, 2013. "A Quantitative Assessment of the Implications of Including non-CO2 Emissions in the European ETS," Working Papers 2013.100, Fondazione Eni Enrico Mattei.
    2. Bosello, Francesco & Orecchia, Carlo & Raitzer, David A., 2016. "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).
    3. 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;Western Agricultural Economics Association.
    4. Pena-Levano, Luis M & Taheripour, Farzad & Tyner, Wallace E, 2016. "Climate change interactions with agriculture, forestry sequestration, and food security," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235771, Agricultural and Applied Economics Association.
    5. 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.
    6. Bosello, Francesco & Marangoni, Giacomo & Orecchia, Carlo & Raitzer, David A. & Tavoni, Massimo, 2016. "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).
    7. Melania Michetti & Matteo Zampieri, 2014. "Climate–Human–Land Interactions: A Review of Major Modelling Approaches," Land, MDPI, Open Access Journal, vol. 3(3), pages 1-41, July.

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