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The impacts of agricultural trade and support policy reform on climate change adaptation and environmental performance: A model-based analysis

Author

Listed:
  • Santiago Guerrero

    (OECD)

  • Ben Henderson

    (OECD)

  • Hugo Valin

    (OECD)

  • Charlotte Janssens

    (International Institute for Applied Systems Analysis)

  • Petr Havlik

    (International Institute for Applied Systems Analysis)

  • Amanda Palazzo

    (International Institute for Applied Systems Analysis)

Abstract

This study investigates whether agricultural policy reforms could help cushion the impacts of climate change on agriculture by facilitating the relocation of production and international trade. The agricultural sector faces immense challenges in ensuring the provision of food, farm incomes, employment and environmental services in a changing climate. Its ability to meet these challenges depends, in part, on the flexibility with which agricultural production can be relocated in response to agro-ecological and market conditions being reshaped by climate change in a sustainable manner. To better understand these interactions, this study employs a quantitative model to assess the economic and environmental effects of removing market distorting policies under climate change. The results suggest that the policy reforms could reduce the extent to which climate change increases agricultural commodity prices and undernourishment and, in that sense, contribute to global adaptation to climate change. Accompanying policy measures may however be required to prevent potential trade-offs associated with the reforms, including increases in land use emissions.

Suggested Citation

  • 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.
  • Handle: RePEc:oec:agraaa:180-en
    DOI: 10.1787/520dd70d-en
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    References listed on IDEAS

    as
    1. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.
    2. Estrades, Carmen, 2015. "The Role of Export Restrictions in Agriculture Trade," 2015: Trade and Societal Well-Being, December 13-15, 2015, Clearwater Beach, Florida 229229, International Agricultural Trade Research Consortium.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Adaptive capacity; Agricultural policy; Land use change; Non-technical measures; Producer support; Tariffs; Trade policy; Water scarcity;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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