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Agricultural adaptation to climate policies under technical change

Author

Listed:
  • Uwe A. Schneider
  • Michael Obersteiner
  • Erwin Schmid
  • Bruce A. McCarl

    (Research unit Sustainability and Global Change, Hamburg)

Abstract
This study uses a partial equilibrium model of the US agricultural sector to examine how technical progress and carbon price levels affect land management adaptation. We find that the climate policy range, over which a more extensive agriculture is preferred, decreases as crop yields increase. Second, technical progress with traditional crops offers less mitigation benefits than progress with mitigation options themselves. Third, while agricultural producers benefit from technical progress on energy crops, they fare worse if technical progress improves traditional crops and low carbon prices.

Suggested Citation

  • Uwe A. Schneider & Michael Obersteiner & Erwin Schmid & Bruce A. McCarl, 2007. "Agricultural adaptation to climate policies under technical change," Working Papers FNU-133, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2008.
    • Handle: RePEc:sgc:wpaper:133
    as

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    File URL: http://www.fnu.zmaw.de/fileadmin/fnu-files/publication/working-papers/technicalprogress_climatepolicy_ASMGHG.pdf
    File Function: First version, 2007
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    References listed on IDEAS

    as
    1. GR Pautsch & LA Kurkalova & BA Babcock & CL Kling, 2001. "The Efficiency Of Sequestering Carbon In Agricultural Soils," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 123-134, April.
    2. Lubowski, Ruben N. & Plantinga, Andrew J. & Stavins, Robert N., 2006. "Land-use change and carbon sinks: Econometric estimation of the carbon sequestration supply function," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 135-152, March.
    3. Hayri Önal & Bruce A. McCarl, 1991. "Exact Aggregation in Mathematical Programming Sector Models," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 319-334, July.
    4. Alig, Ralph J. & Adams, Darius M. & McCarl, Bruce A., 1998. "Impacts of Incorporating Land Exchanges Between Forestry and Agriculture in Sector Models," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(2), pages 389-401, December.
    5. Heng‐Chi Lee & Bruce A. McCarl & Dhazn Gillig, 2005. "The Dynamic Competitiveness of U.S. Agricultural and Forest Carbon Sequestration," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(4), pages 343-357, December.
    6. Schneider, Uwe A. & McCarl, Bruce A., 2005. "Implications of a Carbon-Based Energy Tax for U.S. Agriculture," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(2), pages 1-15, October.
    7. Uwe Schneider & Bruce McCarl, 2003. "Economic Potential of Biomass Based Fuels for Greenhouse Gas Emission Mitigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(4), pages 291-312, April.
    8. Uwe A. Schneider & Bruce A. McCarl, 2006. "Appraising agricultural greenhouse gas mitigation potentials: effects of alternative assumptions," Agricultural Economics, International Association of Agricultural Economists, vol. 35(3), pages 277-287, November.
    9. Michael Gallaher & K. Casey. Delhotal, 2005. "Modeling the Impact of Technical Change on Emissions Abatement Investments in Developing Countries," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 211-225, January.
    10. Antle, John & Capalbo, Susan & Mooney, Sian & Elliott, Edward & Paustian, Keith, 2003. "Spatial heterogeneity, contract design, and the efficiency of carbon sequestration policies for agriculture," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 231-250, September.
    11. Ching-Cheng Chang & Bruce A. McCarl & James W. Mjelde & James W. Richardson, 1992. "Sectoral Implications of Farm Program Modifications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 38-49.
    12. Schneider, Uwe A. & Kumar, Pushpam, 2008. "Greenhouse Gas Mitigation through Agriculture," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 23(1), pages 1-5.
    13. Kulshreshtha, S. N. & Junkins, B. & Desjardins, R., 2000. "Prioritizing greenhouse gas emission mitigation measures for agriculture," Agricultural Systems, Elsevier, vol. 66(3), pages 145-166, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Technical Change; Producer Adaptation; Agricultural Sector Model; Carbon Sequestration; Mathematical Programming; Climate Policy Simulation;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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