Economic impacts of climate-induced crop yield changes: evidence from agri-food industries in six countries

Daoping Wang, Katie Jenkins, Nicole Forstenhäusler, Tianyang Lei, Jeff Price, Rachel Warren, Rhosanna Jenkins and Dabo Guan ()
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Daoping Wang: Shanghai University of Finance and Economics
Katie Jenkins: University of East Anglia
Nicole Forstenhäusler: University of East Anglia
Tianyang Lei: Tsinghua University
Jeff Price: University of East Anglia
Rachel Warren: University of East Anglia
Rhosanna Jenkins: University of East Anglia
Dabo Guan: Tsinghua University

Climatic Change, 2021, vol. 166, issue 3, No 4, 19 pages

Abstract: Abstract The potential impact of climate change on agriculture has been one of the most discussed topics in the literature on climate change. Although the possible impacts of climate change on crop yields have been widely studied, there remains little quantitative understanding of the heterogeneous economic responses to climate-induced crop yield changes in different economies, particularly at higher levels of warming. This study assesses the economic impacts of eight scenarios of warming, from 1.5 to 4 °C, on rice and wheat yields in China, India, Brazil, Egypt, Ghana and Ethiopia. The role of both natural and social factors in crop production is considered by coupling a statistical crop model (ClimaCrop) and a global economic model (GTAP). Changes in economic outputs, consumer and producer prices and national economic welfare are presented. The study shows marginal benefits of crop yield changes on GDP and welfare in China up to 3.5 and 3.0 °C, respectively. This is due to projected increases in rice yields which lower domestic consumer rice prices. Although at higher warming levels these trends begin to reverse. The other countries are negatively impacted due to declining crop yields, with increasing consumer prices of domestic and imported rice and wheat. GDP and welfare declines, with more severe reductions associated with the higher warming levels, particularly in India and Ethiopia. The method is beneficial as the economic outputs reflect a more in-depth picture of the response of global markets and ultimately regional consequences of agricultural impacts that will be of importance to decision makers.

Keywords: Climate change; Crop yield; Economic effects; CGE modelling (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s10584-021-03062-8

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