Climate Change Assessment and Agriculture in General Equilibrium Models: Alternative Modeling Strategies

23 Pages Posted: 10 Sep 2009

See all articles by Ruslana Rachel Palatnik

Ruslana Rachel Palatnik

Fondazione Eni Enrico Mattei; University of Haifa - Natural Resource & Environmental Research Center (NRERC); Max Stern Academic College of Emek Yezreel

Roberto Roson

Ca Foscari University of Venice - Dipartimento di Economia; Bocconi University - IEFE Centre for Research on Energy and Environmental Economics and Policy; Loyola Andalucia University

Date Written: September 15, 2009

Abstract

Agricultural sectors play a key role in the economics of climate change. Land as an input to agricultural production is one of the most important links between economy and the biosphere, representing a direct projection of human action on the natural environment. Agricultural management practices and cropping patterns exert an enormous effect on biogeochemical cycles, freshwater availability and soil quality. Agriculture also plays an important role in emitting and storing greenhouse gases. To consistently investigate climate policy and future pathways for the economic and natural environment, a realistic representation of agricultural land use is essential. Computable General Equilibrium (CGE) models have increasingly been used for this purpose. CGE models simulate the simultaneous equilibrium in a set of interdependent markets, and are especially suited to analyze agricultural markets from a global perspective. However, modeling agricultural sectors in CGE models is not a trivial task, mainly because of differences in temporal and geographic aggregation scales. This study surveys some proposed modeling strategies, reviewing the available literature and highlighting the different tradeoffs involved in the various approaches.

Keywords: Computable General Equilibrium (CGE), Partial Equilibrium (PE), Agriculture, Land Use, Climate Change

JEL Classification: C68, D58, Q24, Q51, Q54

Suggested Citation

Palatnik, Ruslana Rachel and Roson, Roberto, Climate Change Assessment and Agriculture in General Equilibrium Models: Alternative Modeling Strategies (September 15, 2009). FEEM Working Paper No. 67.2009; CMCC Research Paper No. 62. Available at SSRN: https://ssrn.com/abstract=1469523 or http://dx.doi.org/10.2139/ssrn.1469523

Ruslana Rachel Palatnik (Contact Author)

Fondazione Eni Enrico Mattei ( email )

Campo S. M. Formosa, Castello 5252
Venezia, 30122
Italy

University of Haifa - Natural Resource & Environmental Research Center (NRERC)

Haifa, 31905
Israel

Max Stern Academic College of Emek Yezreel

Emek Yezreel, 19300
Yezreel 19300
Israel

Roberto Roson

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy
+39 041 2349147 (Phone)
+39 041 2349176 (Fax)

HOME PAGE: http://venus.unive.it/roson

Bocconi University - IEFE Centre for Research on Energy and Environmental Economics and Policy ( email )

viale Filippetti, 9
Milan, 20122
Italy

Loyola Andalucia University ( email )

Escritor Castilla Aguayo no. 4
Cordoba, CORDOBA 14004
Spain

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