Modeling the Impacts of Agricultural Support Policies on Emissions from Agriculture

51 Pages Posted: 26 May 2020 Last revised: 30 Apr 2023

See all articles by David Laborde

David Laborde

United Nations - Food and Agriculture Organization (FAO)

Abdullah Mamun

Markets, Trade, and Institutions Division of the International Food Policy Research Institute (IFPRI)

Will J. Martin

International Food Policy Research Institute (IFPRI)

Valeria Pineiro

A member of the CGIAR Consortium - International Food Policy Research Institute (IFPRI)

Rob Vos

International Food Policy Research Institute (IFPRI)

Multiple version iconThere are 2 versions of this paper

Date Written: May 2020

Abstract

To understand the impacts of support programs on global emissions, this paper considers the impacts of domestic subsidies, price distortions at the border, and investments in emission-reducing technologies on global greenhouse gas (GHG) emissions from agriculture. In a step towards a full evaluation of the impacts, it uses a counterfactual global model scenario showing how much emissions from agricultural production would change if agricultural support were abolished worldwide. The analysis indicates that, without subsidies paid directly to farmers, output of some emission-intensive activities and agricultural emissions would be smaller. Without agricultural trade protection, however, emissions would be higher. This is partly because protection reduces global demand more than it increases global agricultural supply, and partly because some countries that currently tax agriculture have high emission intensities. Policies that directly reduce emission intensities yield much larger reductions in emissions than those that reduce emission intensities by increasing overall productivity because overall productivity growth creates a rebound effect by reducing product prices and expanding output. A key challenge is designing policy reforms that effectively reduce emissions without jeopardizing other key goals such as improving nutrition and reducing poverty. This analysis is an important building block towards a full understanding the impacts of reforms to agricultural support on mitigation of greenhouse gas emissions and adaptation to climate change. That full analysis is being undertaken in current work incorporating land use changes and examining the impacts of specific reforms on mitigation, resilience and economic outcomes.

Suggested Citation

Laborde, David and Mamun, Abdullah and Martin, William J. and Pineiro, Valeria and Vos, Rob, Modeling the Impacts of Agricultural Support Policies on Emissions from Agriculture (May 2020). NBER Working Paper No. w27202, Available at SSRN: https://ssrn.com/abstract=3609654

David Laborde (Contact Author)

United Nations - Food and Agriculture Organization (FAO) ( email )

Viale delle Terme di Caracalla
Rome, Lazio 00153
Italy

Abdullah Mamun

Markets, Trade, and Institutions Division of the International Food Policy Research Institute (IFPRI) ( email )

United States

William J. Martin

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Valeria Pineiro

A member of the CGIAR Consortium - International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Rob Vos

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

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