The crucial role of domestic and international market-mediated adaptation to climate change

Climate change effects on agricultural yields will be uneven over the world. A few countries, mostly in high latitudes, may experience gains, while most will see average yield decrease. This paper aims to quantify the role of market-mediated adjustments in attenuating the effects of climate change b...

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Autores principales: Gouel, Christophe, Laborde Debucquet, David
Formato: Journal Article
Lenguaje:Inglés
Publicado: Elsevier 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/142707
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author Gouel, Christophe
Laborde Debucquet, David
author_browse Gouel, Christophe
Laborde Debucquet, David
author_facet Gouel, Christophe
Laborde Debucquet, David
author_sort Gouel, Christophe
collection Repository of Agricultural Research Outputs (CGSpace)
description Climate change effects on agricultural yields will be uneven over the world. A few countries, mostly in high latitudes, may experience gains, while most will see average yield decrease. This paper aims to quantify the role of market-mediated adjustments in attenuating the effects of climate change by allowing the expression of the new climate-induced pattern of comparative advantages within and between countries. To do this, we develop a quantitative general equilibrium trade model where the representation of land use choice is inspired from modern Ricardian trade models. We use spatially explicit information from the agronomic literature about potential yields before and after climate change for calibration and counterfactual simulations. The results show that the climate-induced yield changes generate large price movements that incentivize adjustments in production and trade. Both production and trade adjustments contribute to reducing welfare losses globally, with production adjustments making the larger contribution.
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spelling CGSpace1427072025-12-08T10:11:39Z The crucial role of domestic and international market-mediated adaptation to climate change Gouel, Christophe Laborde Debucquet, David models adaptation agriculture crop production trade land use international trade climate change Climate change effects on agricultural yields will be uneven over the world. A few countries, mostly in high latitudes, may experience gains, while most will see average yield decrease. This paper aims to quantify the role of market-mediated adjustments in attenuating the effects of climate change by allowing the expression of the new climate-induced pattern of comparative advantages within and between countries. To do this, we develop a quantitative general equilibrium trade model where the representation of land use choice is inspired from modern Ricardian trade models. We use spatially explicit information from the agronomic literature about potential yields before and after climate change for calibration and counterfactual simulations. The results show that the climate-induced yield changes generate large price movements that incentivize adjustments in production and trade. Both production and trade adjustments contribute to reducing welfare losses globally, with production adjustments making the larger contribution. 2021-03-01 2024-05-22T12:10:54Z 2024-05-22T12:10:54Z Journal Article https://hdl.handle.net/10568/142707 en Open Access Elsevier Gouel, Christophe; and Laborde Debucquet, David. 2021. The crucial role of domestic and international market-mediated adaptation to climate change. Journal of Environmental Economics and Management 106(March 2021): 102408. https://doi.org/10.1016/j.jeem.2020.102408
spellingShingle models
adaptation
agriculture
crop production
trade
land use
international trade
climate change
Gouel, Christophe
Laborde Debucquet, David
The crucial role of domestic and international market-mediated adaptation to climate change
title The crucial role of domestic and international market-mediated adaptation to climate change
title_full The crucial role of domestic and international market-mediated adaptation to climate change
title_fullStr The crucial role of domestic and international market-mediated adaptation to climate change
title_full_unstemmed The crucial role of domestic and international market-mediated adaptation to climate change
title_short The crucial role of domestic and international market-mediated adaptation to climate change
title_sort crucial role of domestic and international market mediated adaptation to climate change
topic models
adaptation
agriculture
crop production
trade
land use
international trade
climate change
url https://hdl.handle.net/10568/142707
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