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GTAP Resource #4621

"The economic benefits and costs of mitigating climate change on agriculture"
by Pena-Levano, Luis, Farzad Taheripour and Wally Tyner

Rapid changes are occurring in the global climate which are provoking increases in temperature and alteration of diverse human and environmental systems. Most scientists claim that these changes are mainly driven by accumulation of greenhouse gases (GHG) in the atmosphere due to human activities. According to the IPCC and the Whitehouse Administration Reports, the previous studies may have underestimated the total costs or benefits of climate change and mitigation policies due to different limitations in their methodologies, scope and assumptions.

Our study evaluate the extent to which incorporation of climate change induced changes in crop yields could impact forest carbon sequestration with a carbon tax. Our research use a biophysical framework to capture climate change impacts on agricultural productivity and implementing the yield shocks into GTAP-AEZ-GHG model to analyze the economic changes.

We find that the reduction in crop yields in many regions does negatively impact the potential for forest carbon sequestration. The yield reduction causes more land to be needed for crop production making less available for forest. In addition, the crop yield reduction reduces overall crop production and significantly increases crop and livestock prices. These prices increase substantially even though demand has been reduced due to the negative economic impacts of the carbon tax. Developing countries have much more negative economic impacts than rich countries.

The full paper can be found in the following link:

Resource Details (Export Citation) GTAP Keywords
Category: 2015 Conference Paper
Status: Published
By/In: Presented at the 18th Annual Conference on Global Economic Analysis, Melbourne, Australia
Date: 2015
Created: Pena-Levano, L. (4/3/2015)
Updated: Pena-Levano, L. (6/18/2015)
Visits: 1,765
- Climate change policy
- Climate impacts
- Land use
- Agricultural policies

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