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Journal Article

The impact of high-end climate change on agricultural welfare

Authors
/persons/resource/stevanovic

Stevanović,  Miodrag
Potsdam Institute for Climate Impact Research;

/persons/resource/Alexander.Popp

Popp,  Alexander
Potsdam Institute for Climate Impact Research;

/persons/resource/Lotze-Campen

Lotze-Campen,  Hermann
Potsdam Institute for Climate Impact Research;

/persons/resource/Jan.Dietrich

Dietrich,  Jan Philipp
Potsdam Institute for Climate Impact Research;

/persons/resource/Christoph.Mueller

Müller,  Christoph
Potsdam Institute for Climate Impact Research;

/persons/resource/markus.bonsch

Bonsch,  Markus
Potsdam Institute for Climate Impact Research;

/persons/resource/christoph.schmitz

Schmitz,  Christoph
Potsdam Institute for Climate Impact Research;

/persons/resource/Bodirsky

Bodirsky,  Benjamin Leon
Potsdam Institute for Climate Impact Research;

/persons/resource/Florian.Humpenoeder

Humpenöder,  Florian
Potsdam Institute for Climate Impact Research;

/persons/resource/Isabelle.Weindl

Weindl,  Isabelle
Potsdam Institute for Climate Impact Research;

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Citation

Stevanović, M., Popp, A., Lotze-Campen, H., Dietrich, J. P., Müller, C., Bonsch, M., Schmitz, C., Bodirsky, B. L., Humpenöder, F., Weindl, I. (2016): The impact of high-end climate change on agricultural welfare. - Science Advances, 2, 8, e1501452.
https://doi.org/10.1126/sciadv.1501452


Cite as: https://publications.pik-potsdam.de/pubman/item/item_20998
Abstract
Climate change threatens agricultural productivity worldwide, resulting in higher food prices. Associated economic gains and losses differ not only by region but also between producers and consumers and are affected by market dynamics. On the basis of an impact modeling chain, starting with 19 different climate projections that drive plant biophysical process simulations and ending with agro-economic decisions, this analysis focuses on distributional effects of high-end climate change impacts across geographic regions and across economic agents. By estimating the changes in surpluses of consumers and producers, we find that climate change can have detrimental impacts on global agricultural welfare, especially after 2050, because losses in consumer surplus generally outweigh gains in producer surplus. Damage in agriculture may reach the annual loss of 0.3% of future total gross domestic product at the end of the century globally, assuming further opening of trade in agricultural products, which typically leads to interregional production shifts to higher latitudes. Those estimated global losses could increase substantially if international trade is more restricted. If beneficial effects of atmospheric carbon dioxide fertilization can be realized in agricultural production, much of the damage could be avoided. Although trade policy reforms toward further liberalization help alleviate climate change impacts, additional compensation mechanisms for associated environmental and development concerns have to be considered.