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Climate Change Assessment and Agriculture in General Equilibrium Models: Alternative Modeling Strategies

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  • Palatnik, Ruslana Rachel
  • Roson, Roberto

Abstract

Agricultural sectors play a key role in the economics of climate change. Land as an input to agricultural production is one of the most important links between economy and the biosphere, representing a direct projection of human action on the natural environment. Agricultural management practices and cropping patterns have a vast effect on biogeochemical cycles, freshwater availability and soil quality. Agriculture also plays an important role in emitting and storing greenhouse gases. Thus, to consistently investigate climate policy and future pathways for the economic and natural environment, a realistic representation of agricultural land-use is essential. Computable General Equilibrium (CGE) models have increasingly been used to this purpose. CGE models simulate the simultaneous equilibrium in a set of interdependent markets, and are especially suited to analyze agricultural markets from a global perspective. However, modelling agricultural sectors in CGE models is not a trivial task, mainly because of differences in temporal and geographical aggregation scales. The aim of this study is to overview some proposed modelling strategies, by reviewing the available literature and highlighting the different trade-offs involved in the various approaches.

Suggested Citation

  • Palatnik, Ruslana Rachel & Roson, Roberto, 2009. "Climate Change Assessment and Agriculture in General Equilibrium Models: Alternative Modeling Strategies," Sustainable Development Papers 54284, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemdp:54284
    DOI: 10.22004/ag.econ.54284
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    Cited by:

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    2. St�phanie Monjon & Philippe Quirion, 2011. "A border adjustment for the EU ETS: reconciling WTO rules and capacity to tackle carbon leakage," Climate Policy, Taylor & Francis Journals, vol. 11(5), pages 1212-1225, September.
    3. Francesco Bosello & Lorenza Campagnolo & Raffaello Cervigni & Fabio Eboli, 2018. "Climate Change and Adaptation: The Case of Nigerian Agriculture," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(4), pages 787-810, April.
    4. Saibal Kar & Nimai Das, 2015. "Climate Change, Agricultural Production, and Poverty in India," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Almas Heshmati & Esfandiar Maasoumi & Guanghua Wan (ed.), Poverty Reduction Policies and Practices in Developing Asia, edition 127, chapter 0, pages 55-76, Springer.
    5. Hasan Dudu & Erol Cakmak, 2014. "An Integrated Analysis of Economywide Effects of Climate Change," WIDER Working Paper Series wp-2014-106, World Institute for Development Economic Research (UNU-WIDER).
    6. Zhai, Fan & Lin, Tun & Byambadorj, Enerelt, 2009. "A General Equilibrium Analysis of the Impact of Climate Change on Agriculture in the People’s Republic of China," Asian Development Review, Asian Development Bank, vol. 26(1), pages 206-225.
    7. Vitezslav Pisa & Jan Bruha & Vitezslav Pisa, 2011. "Dynamics of the Commodity Prices and Quantities: An Analysis using a Dynamic Multiregional CGE Model," EcoMod2011 2889, EcoMod.
    8. Melania Michetti & Matteo Zampieri, 2014. "Climate–Human–Land Interactions: A Review of Major Modelling Approaches," Land, MDPI, vol. 3(3), pages 1-41, July.
    9. Uzma Hanif & Shabib Haider Syed & Rafique Ahmad & Kauser Abdullah Malik, 2010. "Economic Impact of Climate Change on the Agricultural Sector of Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 771-798.
    10. Dudu, Hasan & Cakmak, Erol H., 2014. "An integrated analysis of economywide effects of climate change," WIDER Working Paper Series 106, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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