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Agricultural subsidies and global greenhouse gas emissions

Author

Listed:
  • David Laborde

    (International Food Policy Research Institute (IFPRI))

  • Abdullah Mamun

    (International Food Policy Research Institute (IFPRI))

  • Will Martin

    (International Food Policy Research Institute (IFPRI))

  • Valeria Piñeiro

    (International Food Policy Research Institute (IFPRI))

  • Rob Vos

    (International Food Policy Research Institute (IFPRI))

Abstract

Agricultural production is strongly affected by and a major contributor to climate change. Agriculture and land-use change account for a quarter of total global emissions of greenhouse gases (GHG). Agriculture receives around US$600 billion per year worldwide in government support. No rigorous quantification of the impact of this support on GHG emissions has been available. This article helps fill the void. Here, we find that, while over the years the government support has incentivized the development of high-emission farming systems, at present, the support only has a small impact in terms of inducing additional global GHG emissions from agricultural production; partly because support is not systematically biased towards high-emission products, and partly because support generated by trade protection reduces demand for some high-emission products by raising their consumer prices. Substantially reducing GHG emissions from agriculture while safeguarding food security requires a more comprehensive revamping of existing support to agriculture and food consumption.

Suggested Citation

  • David Laborde & Abdullah Mamun & Will Martin & Valeria Piñeiro & Rob Vos, 2021. "Agricultural subsidies and global greenhouse gas emissions," Nature Communications, Nature, vol. 12(1), pages 1-9, December.
    • Handle: RePEc:nat:natcom:v:12:y:2021:i:1:d:10.1038_s41467-021-22703-1
    DOI: 10.1038/s41467-021-22703-1
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    Cited by:

    1. Kym Anderson, 2023. "Agriculture's globalization: Endowments, technologies, tastes and policies," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1314-1352, September.
    2. Abdullah Mamun, 2024. "Impact of farm subsidies on global agricultural productivity," Agricultural Economics, International Association of Agricultural Economists, vol. 55(2), pages 346-364, March.
    3. Aryal, Jeetendra P., 2022. "Contribution of Agriculture to Climate Change and Low-Emission Agricultural Development in Asia and the Pacific," ADBI Working Papers 1340, Asian Development Bank Institute.
    4. Martin, Will & Ivanic, Maros & Mamun, Abdullah, 2021. "Modeling Development Policies with Multiple Objectives," 2021 Conference, August 17-31, 2021, Virtual 315330, International Association of Agricultural Economists.
    5. Ning Xu & Wenjie Zhang & Haoran Li & Wanxu Chen, 2024. "Fiscal support and carbon productivity of agriculture—Empirical evidence from China," Energy & Environment, , vol. 35(5), pages 2451-2475, August.
    6. Diaz-Bonilla, Eugenio & McNamara, Brian & Njuki, Jemimah & Swinnen, Johan & Vos, Rob, 2022. "The UN Food Systems Summit 2021: Lessons of the Gender and Finance Levers," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322751, Agricultural and Applied Economics Association.
    7. Anderson, Kym, 2022. "Trade-related food policies in a more volatile climate and trade environment," Food Policy, Elsevier, vol. 109(C).
    8. Pan, Hengyu & Zheng, Xiangyu & Wu, Rui & Liu, Xincong & Xiao, Shijiang & Sun, Lu & Hu, Tianzi & Gao, Ziyan & Yang, Liping & Huang, Chengyi & Zhang, Xiaohong & Deng, Shihuai & Xiao, Yinlong, 2024. "Agriculture related methane emissions embodied in China's interprovincial trade," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    9. Wang, Kai-Hua & Kan, Jia-Min & Qiu, Lianhong & Xu, Shulin, 2023. "Climate policy uncertainty, oil price and agricultural commodity: From quantile and time perspective," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 256-272.
    10. Jonathan Brooks, 2023. "Agricultural policies and food systems: Priorities for indicator development," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 3-23, February.
    11. Sajith, Gouri & Srinivas, Rallapalli & Golberg, Alexander & Magner, Joe, 2022. "Bio-inspired and artificial intelligence enabled hydro-economic model for diversified agricultural management," Agricultural Water Management, Elsevier, vol. 269(C).
    12. Jeremiás Máté Balogh, 2023. "The impacts of agricultural subsidies of Common Agricultural Policy on agricultural emissions: The case of the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(4), pages 140-150.
    13. Zhe Zhao & Fan Zhang & Yiqiong Du & Xin Xuan & Ying Cai & Gui Jin, 2024. "Farm size and greenhouse gas emission: Do large farms in China produce more emissions?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(3), pages 112-124.
    14. Joseph Phiri & Karel Malec & Alpo Kapuka & Mansoor Maitah & Seth Nana Kwame Appiah-Kubi & Zdeňka Gebeltová & Mwila Bowa & Kamil Maitah, 2021. "Impact of Agriculture and Energy on CO 2 Emissions in Zambia," Energies, MDPI, vol. 14(24), pages 1-13, December.
    15. repec:caa:jnlage:v:preprint:id:307-2023-agricecon is not listed on IDEAS
    16. Bohan Sun & Ruiqi Sun & Ke Gao & Yifan Zhang & Shuyue Wang & Puxian Bai, 2024. "Analyzing the mechanism among rural financing constraint mitigation, agricultural development, and carbon emissions in China: A sustainable development paradigm," Energy & Environment, , vol. 35(4), pages 1850-1870, June.
    17. Xu, Xin & An, Haizhong & Huang, Shupei & Jia, Nanfei & Qi, Yajie, 2024. "Measurement of daily climate physical risks and climate transition risks faced by China's energy sector stocks," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 625-640.
    18. Yanyong Hu & Zhixiao Zou & Jiaxi Wu & Zheng Meng, 2024. "Double-edged sword: China’s free trade agreements reinforces embodied greenhouse gas transfers in agricultural products," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    19. Santiago Guerrero & Ben Henderson & Hugo Valin & Charlotte Janssens & Petr Havlik & Amanda Palazzo, 2022. "The impacts of agricultural trade and support policy reform on climate change adaptation and environmental performance: A model-based analysis," OECD Food, Agriculture and Fisheries Papers 180, OECD Publishing.

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