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    Afforestation to mitigate climate change: Impacts on food prices under consideration of albedo effects
    (Bristol : IOP Publishing, 2016) Kreidenweis, Ulrich; Humpenöder, Florian; Stevanović, Miodrag; Bodirsky, Benjamin Leo; Kriegler, Elmar; Lotze-Campen, Hermann; Popp, Alexander
    Ambitious climate targets, such as the 2 °C target, are likely to require the removal of carbon dioxide from the atmosphere. Afforestation is one such mitigation option but could, through the competition for land, also lead to food prices hikes. In addition, afforestation often decreases land-surface albedo and the amount of short-wave radiation reflected back to space, which results in a warming effect. In particular in the boreal zone, such biophysical warming effects following from afforestation are estimated to offset the cooling effect from carbon sequestration. We assessed the food price response of afforestation, and considered the albedo effect with scenarios in which afforestation was restricted to certain latitudinal zones. In our study, afforestation was incentivized by a globally uniform reward for carbon uptake in the terrestrial biosphere. This resulted in large-scale afforestation (2580 Mha globally) and substantial carbon sequestration (860 GtCO2) up to the end of the century. However, it was also associated with an increase in food prices of about 80% by 2050 and a more than fourfold increase by 2100. When afforestation was restricted to the tropics the food price response was substantially reduced, while still almost 60% cumulative carbon sequestration was achieved. In the medium term, the increase in prices was then lower than the increase in income underlying our scenario projections. Moreover, our results indicate that more liberalised trade in agricultural commodities could buffer the food price increases following from afforestation in tropical regions..
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    The impact of high-end climate change on agricultural welfare
    (Washington, DC : American Association for the Advancement of Science, 2016) Stevanović, Miodrag; Popp, Alexander; Lotze-Campen, Hermann; Dietrich, Jan Philipp; Müller, Christoph; Bonsch, Markus; Schmitz, Christoph; Bodirsky, Benjamin Leon; Humpenöder, Florian; Weindl, Isabelle
    Climate change threatens agricultural productivity worldwide, resulting in higher food prices. Associated economic gains and losses differ not only by region but also between producers and consumers and are affected by market dynamics. On the basis of an impact modeling chain, starting with 19 different climate projections that drive plant biophysical process simulations and ending with agro-economic decisions, this analysis focuses on distributional effects of high-end climate change impacts across geographic regions and across economic agents. By estimating the changes in surpluses of consumers and producers, we find that climate change can have detrimental impacts on global agricultural welfare, especially after 2050, because losses in consumer surplus generally outweigh gains in producer surplus. Damage in agriculture may reach the annual loss of 0.3% of future total gross domestic product at the end of the century globally, assuming further opening of trade in agricultural products, which typically leads to interregional production shifts to higher latitudes. Those estimated global losses could increase substantially if international trade is more restricted. If beneficial effects of atmospheric carbon dioxide fertilization can be realized in agricultural production, much of the damage could be avoided. Although trade policy reforms toward further liberalization help alleviate climate change impacts, additional compensation mechanisms for associated environmental and development concerns have to be considered.