Implications of Climate Policy for Local Agriculture and Irrigation

Iman Haqiqi

No 333449, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: A national carbon pricing policy will have implications for energy-intensive economic sectors. The transmission to agriculture can be through nitrogen fertilizer and irrigation as they are major energy-intensive inputs for agricultural production. The goal of this study is to quantify the impact of the US carbon pricing policy on agricultural land use and irrigation water. Here a global general equilibrium model will inform a high-resolution partial equilibrium model of land use and water. Specifically, the shocks are obtained from the ENVISAGE model quantifying the final change in prices at the national level for factor returns and energy products. Then SIMPLE-G quantifies the likely changes in the spatial pattern of water and land use given the estimated shocks in input prices. This calculation entails grid-cell specific input shocks and heterogeneous economic responses.

Keywords: Environmental Economics and Policy; Land Economics/Use (search for similar items in EconPapers)
Pages: 12
Date: 2022
New Economics Papers: this item is included in nep-agr and nep-env
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