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Climate Change, Water Scarcity on Agriculture and the Economy-Wide: impacts in the LAC Region

Author

Listed:
  • Roberto Ponce
  • Ramiro Parrado

    (School of Business and Economics, Universidad del Desarrollo)

Abstract

Water resources are facing several stresses in terms of quantity and quality. These pressures are closely related to the human interventions in fields like: agriculture, land-use/land use change, and pollutant emissions, among others. Within this context, the expected changes in climate pattern will exacerbate the challenges faced by water resources. Considering the critical role that water plays for agricultural production, any shock in water availability will have great implications for agricultural production, and through agricultural markets these impacts will reach the whole economy with economy-wide consequences. In this paper a new modeling approach is developed aiming to include water explicitly within the ICES CGE model. In order to reach this objective a new database was built considering explicitly the water endowment, precipitation changes, and unitary irrigation costs. The results suggest different economic consequences of climate change on the LAC economy. The impacts are related to change in crop production, endowment demands, and international trade.

Suggested Citation

  • Roberto Ponce & Ramiro Parrado, 2015. "Climate Change, Water Scarcity on Agriculture and the Economy-Wide: impacts in the LAC Region," Serie Working Papers 16, Universidad del Desarrollo, School of Business and Economics.
    • Handle: RePEc:dsr:wpaper:16
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    References listed on IDEAS

    as
    1. Berrittella, Maria & Rehdanz, Katrin & Roson, Roberto & Tol, Richard S.J., 2007. "The Economic Impact of Water Taxes: A Computable General Equilibrium Analysis with an International Data Set," Conference papers 331655, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Maria Berrittella & Katrin Rehdanz & Arjen Y. Hoekstra & Roberto Roson & Richard S.J. Tol, 2006. "The Economic Impact Of Restricted Water Supply: A Computable General Equilibrium Analysis," Working Papers FNU-93, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2006.
    3. Maria Berrittella & Katrin Rehdanz & Richard S.J. Tol, 2006. "The Economic Impact Of The South-North Water Transfer Project In China: A Computable General Equilibrium Analysis," Working Papers FNU-117, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2006.
    4. Rehdanz, Katrin & Berrittella, Maria & S.J. Tol, Richard & Zhang, Jian, 2008. "The Impact of Trade Liberalization on Water Use: A Computable General Equilibrium Analysis," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 631-655.
    5. Maria Berrittella & Katrin Rehdanz & Roberto Roson & Richard S.J. Tol, 2006. "The Economic Impact Of Water Pricing: A Computable General Equilibrium Analysis," Working Papers FNU-96, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2006.
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    Keywords

    CGE Models; Climate Change; Agriculture; Water Resources; Irrigation;
    All these keywords.

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