The Economic Impacts of Climate Change on Agriculture: New Damage Functions from a Meta-Analsis and the GGCMI
Abstract
Substantial advances have been made in recent years in understanding the effects of climate change on agriculture, but this is not currently represented in economic models used to quantify the benefits of reducing greenhouse gas emissions. In fact, the science regarding climate change impacts on agriculture in these models dates to the early 1990s or before. In this paper we derive new economic damage functions for the agricultural sector based on two methods for aggregating current scientific understanding of the impacts of warming on yields. We first present a new meta-analysis based on a review of the agronomic literature performed for the IPCC 5th Assessment Report and compare results from this approach with findings from the AgMIP Global Gridded Crop Model Intercomparison (GGCMI). We find yield impacts implied by the meta-analysis are generally more negative than those from the GGCMI, particularly at higher latitudes, but show substantial agreement in many areas. We then use both yield products as input to the Global Trade Analysis Project (GTAP) computable general equilibrium (CGE) model in order to estimate the welfare consequences of these yield shocks and to produce two new economic damage functions. These damage functions are consistently more negative than the current representation of agricultural damages in Integrated Asessment Models (IAMs), in some cases substantially so. Replacing the existing damage functions with those based on more recent science increases the social cost of carbon (SCC) by between 43% (GGCMI) and 143% (Meta-Analysis). In addition to presenting a new mutli-crop, multi-model gridded yield impact prouct that complements the GGCMI, this is also the first end-to-end study that directly links the biophysical impacts of climate change to the SCC, something we believe essential to improving the integrity of IAMs going forward.
- Publication:
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AGU Fall Meeting Abstracts
- Pub Date:
- December 2016
- Bibcode:
- 2016AGUFMGC53F..05M
- Keywords:
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- 3305 Climate change and variability;
- ATMOSPHERIC PROCESSESDE: 0402 Agricultural systems;
- BIOGEOSCIENCESDE: 1630 Impacts of global change;
- GLOBAL CHANGEDE: 1631 Land/atmosphere interactions;
- GLOBAL CHANGE