Economics at your fingertips  

Impacts of Climate Change on EU Agriculture

Shailesh Shrestha (), Pavel Ciaian, Mihaly Himics and Benjamin Van Doorslaer

Review of Agricultural and Applied Economics (RAAE), 2013, vol. 16, issue 2, 16

Abstract: The current paper investigates the medium term economic impact of climate changes on the EU agriculture. The yield change data under climate change scenarios are taken from the BIOMA (Biophysical Models Application) simulation environment. We employ CAPRI modelling framework to identify the EU aggregate economic effects as well as regional impacts. We take into account supply and market price adjustments of the EU agricultural sector as well as technical adaptation of crops to climate change. Overall results indicate an increase in yields and production level in the EU agricultural sector due to the climate change. In general, there are relatively small effects at the EU aggregate. For example, the value of land use and welfare change by approximately between -2% and 0.2%. However, there is a stronger impact at regional level with some stronger effects prevailing particularly in the Central and Northern EU and smaller impacts are observed in Southern Europe. Regional impacts of climate change vary by a factor higher up to 10 relative to the aggregate EU impacts. The price adjustments reduce the response of agricultural sector to climate change in particular with respect to production and income changes. The technical adaption of crops to climate change may result in a change production and land use by a factor between 1.4 and 6 relative to no-adaptation situation.

Keywords: Agricultural and Food Policy; Environmental Economics and Policy; Production Economics (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.22004/ag.econ.158096

Access Statistics for this article

More articles in Review of Agricultural and Applied Economics (RAAE) from Faculty of Economics and Management, Slovak Agricultural University in Nitra Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

Page updated 2021-04-09
Handle: RePEc:ags:roaaec:158096