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Implications of Climate Policy for Local Agriculture and Irrigation

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  • Haqiqi, Iman

Abstract

A national carbon pricing policy will have implications for energy-intensive economic sectors. The transmission to agriculture can be through nitrogen fertilizer and irrigation as they are major energy-intensive inputs for agricultural production. The goal of this study is to quantify the impact of the US carbon pricing policy on agricultural land use and irrigation water. Here a global general equilibrium model will inform a high-resolution partial equilibrium model of land use and water. Specifically, the shocks are obtained from the ENVISAGE model quantifying the final change in prices at the national level for factor returns and energy products. Then SIMPLE-G quantifies the likely changes in the spatial pattern of water and land use given the estimated shocks in input prices. This calculation entails grid-cell specific input shocks and heterogeneous economic responses.

Suggested Citation

  • Haqiqi, Iman, 2022. "Implications of Climate Policy for Local Agriculture and Irrigation," Conference papers 333449, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:333449
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    References listed on IDEAS

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    1. Edwin Van Der Werf & Sonja Peterson, 2009. "Modeling linkages between climate policy and land use: an overview," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 507-517, September.
    2. Liu, Jing & Hertel, Thomas W. & Lammers, Richard & Prusevich, Alexander & Baldos, Uris Lantz C. & Grogan, Danielle S. & Frolking, Steve, 2017. "Achieving Sustainable Irrigation Water Withdrawals: Global Impacts on Food Security and Land Use," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258118, Agricultural and Applied Economics Association.
    3. Xin Zhao & Dominique Y van der Mensbrugghe & Roman M. Keeney & Wallace E. Tyner, 2021. "Improving the Way Land Use Change is Handled in Economic Models," World Scientific Book Chapters, in: Peter Dixon & Joseph Francois & Dominique van der Mensbrugghe (ed.), POLICY ANALYSIS AND MODELING OF THE GLOBAL ECONOMY A Festschrift Celebrating Thomas Hertel, chapter 15, pages 467-515, World Scientific Publishing Co. Pte. Ltd..
    4. Fan, Jing-Li & Kong, Ling-Si & Zhang, Xian, 2018. "Synergetic effects of water and climate policy on energy-water nexus in China: A computable general equilibrium analysis," Energy Policy, Elsevier, vol. 123(C), pages 308-317.
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    Keywords

    Environmental Economics and Policy; Land Economics/Use;

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