IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/102997.html
   My bibliography  Save this paper

Paris agreement on climate change and the possible impacts on Brazilian meat and dairy sectors

Author

Listed:
  • Alvim, Augusto
  • Sanguinet, Eduardo

Abstract

This study analyzes the impacts of reducing GHG emissions on the Meat and Dairy sectors. For this purpose, the Brazilian targets for the reduction of GHG emissions ratified in the Paris Agreement in 2015 are considered as starting points. To achieve this goal, General Equilibrium Model (GTAP) is used, which allows the inclusion of carbon taxes and the construction of alternative scenarios using GWP and GTP as GHG emissions measures. Four scenarios are analyzed. Scenario 1 applies carbon taxes upon Meat & Dairy sector and no carbon taxes on the other Brazilian sectors. Scenario 2 simulates only carbon taxes upon the Energy sector and Scenario 3 equal carbon taxes on all sectors (20$, 40$ and 60$ per tons of CO2). Scenario 4 considers the application of carbon taxes to the Meat & Dairy, Grains & Crops lower than to the Energy and Industry & Services sectors. For all scenarios is analyzed the main effects on sector emissions but also on production, trade and the Brazilian GPD. In general terms, the results show that: the Scenario 3 may be the most appropriate when we use the GTP measures to estimate GHG emissions. In this case, the reduction in GDP are not as intense as when are used GWP, though the exportation of the Beef and Dairy are also expected to drop. The fourth Scenario seems to be the most adequate in terms of cost distribution among the various economic sectors in Brazil, only when the GWP is considered.

Suggested Citation

  • Alvim, Augusto & Sanguinet, Eduardo, 2020. "Paris agreement on climate change and the possible impacts on Brazilian meat and dairy sectors," MPRA Paper 102997, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:102997
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/102997/9/MPRA_paper_102997.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gurgel, Angelo C. & Paltsev, Sergey & Breviglieri, Gustavo Velloso, 2019. "The impacts of the Brazilian NDC and their contribution to the Paris agreement on climate change," Environment and Development Economics, Cambridge University Press, vol. 24(4), pages 395-412, August.
    2. Daniel Johansson, 2012. "Economics- and physical-based metrics for comparing greenhouse gases," Climatic Change, Springer, vol. 110(1), pages 123-141, January.
    3. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    4. Terciane Sabadini Carvalho & Edson Paulo Domingues, 2016. "Controlling Deforestation In The Brazilian Amazon: Regional Economic Impacts And Land-Use Change," Anais do XLIII Encontro Nacional de Economia [Proceedings of the 43rd Brazilian Economics Meeting] 192, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. Tol, Richard S.J., 2019. "A social cost of carbon for (almost) every country," Energy Economics, Elsevier, vol. 83(C), pages 555-566.
    6. Angelo Costa Gurgel & Sergey Paltsev, 2014. "Costs of reducing GHG emissions in Brazil," Climate Policy, Taylor & Francis Journals, vol. 14(2), pages 209-223, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Augusto Mussi Alvim & Eduardo Rodrigues Sanguinet, 2021. "Climate Change Policies and the Carbon Tax Effect on Meat and Dairy Industries in Brazil," Sustainability, MDPI, vol. 13(16), pages 1-20, August.
    2. William Wills & Emilio Lebre La Rovere & Carolina Grottera & Giovanna Ferrazzo Naspolini & Gaëlle Le Treut & F. Ghersi & Julien Lefèvre & Carolina Burle Schmidt Dubeux, 2022. "Economic and social effectiveness of carbon pricing schemes to meet Brazilian NDC targets," Post-Print hal-03500923, HAL.
    3. Francisco, Adriana Xavier & Gurgel, Angelo, 2020. "Costs of Reducing Deforestation In Brazil: a General Equilibrium Approach," Conference papers 333161, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Angelo Costa Gurgel & Claudia Octaviano & Sergey Paltsev, 2016. "Climate Change Policy In Brazil And Mexico: How Similar Are The Impacts And Solutions?," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 195, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. Octaviano, Claudia & Paltsev, Sergey & Gurgel, Angelo Costa, 2016. "Climate change policy in Brazil and Mexico: Results from the MIT EPPA model," Energy Economics, Elsevier, vol. 56(C), pages 600-614.
    6. Diniz Oliveira, Thais & Costa Gurgel, Angelo & Tonry, Steve, 2021. "Potential trading partners of a brazilian emissions trading scheme: The effects of linking with a developed region (Europe) and two developing regions (Latin America and China)," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    7. Simon J.Evenett & Mia Mikic & Ravi Ratnayake (ed.), 2011. "Trade-led growth: A sound strategy for Asia," ARTNeT Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number brr10.
    8. Henseler, Martin & Piot-Lepetit, Isabelle & Ferrari, Emanuele & Mellado, Aida Gonzalez & Banse, Martin & Grethe, Harald & Parisi, Claudia & Hélaine, Sophie, 2013. "On the asynchronous approvals of GM crops: Potential market impacts of a trade disruption of EU soy imports," Food Policy, Elsevier, vol. 41(C), pages 166-176.
    9. Pavel Ciaian & d'Artis Kancs & Jan Pokrivcak, 2008. "Comparative Advantages, Transaction Costs and Factor Content of Agricultural Trade: Empirical Evidence from the CEE," EERI Research Paper Series EERI_RP_2008_03, Economics and Econometrics Research Institute (EERI), Brussels.
    10. Federico Perali & Stefania Lovo, 2009. "Counterfactual analysis using a regional dynamic general equilibrium model with historical calibration," Working Papers 58/2009, University of Verona, Department of Economics.
    11. Jessica Strefler & Gunnar Luderer & Tino Aboumahboub & Elmar Kriegler, 2014. "Economic impacts of alternative greenhouse gas emission metrics: a model-based assessment," Climatic Change, Springer, vol. 125(3), pages 319-331, August.
    12. Dixon, Peter & Rimmer, Maureen, 2021. "A GTAP Historical Simulation from 2004 to 2014," Conference papers 333258, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Walmsley, Terrie L. & Hertel, Thomas W. & Ianchovichina, Elena, 2001. "Assessing the Impact of China’s WTO Accession on Foreign Ownership," Conference papers 330941, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Yu, Wusheng & Hertel, Thomas W. & Preckel, Paul V. & Eales, James S., 2004. "Projecting world food demand using alternative demand systems," Economic Modelling, Elsevier, vol. 21(1), pages 99-129, January.
    15. Eboli, Fabio & Parrado, Ramiro & Roson, Roberto, 2010. "Climate-change feedback on economic growth: explorations with a dynamic general equilibrium model," Environment and Development Economics, Cambridge University Press, vol. 15(5), pages 515-533, October.
    16. Yu, Jisang & Villoria, Nelson B. & Hendricks, Nathan P., 2019. "The Incidence of Foreign Market Accessibility on Farmland Rental Rates," 2019: Recent Advances in Applied General Equilibrium Modeling: Relevance and Application to Agricultural Trade Analysis, December 8-10, 2019, Washington, DC 339333, International Agricultural Trade Research Consortium.
    17. Allexandro Mori Coelho & Maria Lúcia L. M. Pádua Lima & Samir Cury & Sergio Goldbaum, 2006. "Impacts Of The Proposals For Tariff Reductions In Nonagricultural Goods (Nama)," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 121, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    18. Mohamed Hedi Bchir & Lionel Fontagné & Sébastien Jean, 2005. "From Bound Duties to Actual Protection: Industrial Liberalisation in the Doha Round," Working Papers 2005-12, CEPII research center.
    19. Laborde, David & Martin, Will & van der Mensbrugghe, Dominique, 2008. "Implications of the 2008 Doha Draft Agricultural and NAMA Market Access Modalities for Developing Countries," Conference papers 331719, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Hübler, Michael, 2011. "Technology diffusion under contraction and convergence: A CGE analysis of China," Energy Economics, Elsevier, vol. 33(1), pages 131-142, January.

    More about this item

    Keywords

    Meat and dairy; Carbon taxes; GHG emissions; GTAP.;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:102997. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.