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GTAP Resource #7315

"Reforming budgetary support to agriculture: GHG emission impacts, co-benefits and trade-offs"
by Valin, Hugo, Benjamin Henderson and Jussi Lankoski

Agriculture is among the sectors the most exposed to climate change, but it is also an important source of greenhouse gas (GHG) emissions. Reforming agricultural support is increasingly considered a viable means to increase agriculture’s contribution to climate change mitigation, while fulfilling broader food systems policy objectives related to food security and livelihoods.

This study investigates the impact on GHG emissions from a set of global policy reform scenarios that reorientate governments’ budgetary transfers to agriculture, using the METRO-PEM computable general equilibrium model. This model has the specificity of directly integrating the latest data on agricultural support from the OECD, analysed at policy line level, into the modelling framework.

The results suggest that removing budgetary support globally would reduce agricultural emissions by 2.1% with potential negative effects on food supply. Reorienting existing support, instead, could have significantly stronger effects: decoupling payments from production and tying these to suitable agri-environmental practices could raise emission reduction to over 4% without harming food supply. Targeted investments in productivity and abatement technologies could bring additional emission savings in the long term with co-benefits for food security.

Combining long-term investment programmes with the above agricultural support reforms appears to be the most promising and cost-effective approach to deliver the transformations required in long run. Blending decoupling of the potentially most climate-harmful payments, environmental measures and targeted investments in productivity and abatement technologies in the OECD would reduce global agricultural emissions by 5% – or by 11% if extended to other regions – while balancing outcomes across the three dimensions of the food systems’ triple challenge.

Resource Details (Export Citation) GTAP Keywords
Category: 2024 Conference Paper
Status: Not published
By/In: Presented during the 27th Annual Conference on Global Economic Analysis (Fort Collins, Colorado, USA)
Date: 2023
Created: Valin, H. (4/15/2024)
Updated: Valin, H. (4/15/2024)
Visits: 68
- Climate change policy
- Other data bases and data issues
- Agricultural policies
- Domestic policy analysis
- Global

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