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GTAP Resource #3393

"Effects of GHG Mitigation Policies on Livestock Sectors"
by Golub, Alla, Benjamin Henderson, Thomas Hertel, Steven Rose and Misak Avetisyan

In this paper we have investigated effects of GHG mitigation policies on livestock sectors. We used a global computable general equilibrium GTAP-AEZ-GHG model with explicit unique regional land types, land uses and related GHG emissions. The model is then augmented with cost and GHG response information from partial equilibrium approaches to abatement of land-based greenhouse gas emissions. With this framework we analyze changes in regional livestock output, sector competitiveness and regional food consumption under different climate change mitigation policy regimes. Scenarios we have considered differ by participation/exclusion of agricultural sectors and non-Annex I countries, as well as policy instruments.

The imposition of carbon tax in agriculture has adverse affects on food consumption, especially in developing countries. The reductions in food consumption are smaller if the agricultural producer subsidy is introduced to compensate for carbon tax the producers pay. Our results highlight importance of forest carbon sequestration. The global forest carbon sequestration subsidy effectively controls emission leakage when carbon tax is imposed only in Annex I regions. The sequestration subsidy bids land away from agriculture in non-Annex 1 regions and prevents expansion of livestock and other agricultural sectors. Though the sequestration subsidy allows reduction of GHG emissions, if implemented, the policy may adversely affect food security and agricultural development in developing countries.

Resource Details (Export Citation) GTAP Keywords
Category: 2010 Conference Paper
Status: Published
By/In: Presented at the 13th Annual Conference on Global Economic Analysis, Penang, Malaysia
Date: 2010
Created: Golub, A. (4/15/2010)
Updated: Golub, A. (6/8/2010)
Visits: 2,388
- Climate change policy

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