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Climate Change, Water Scarcity in Agriculture and the Country-Level Economic Impacts. A Multimarket Analysis

Roberto Ponce Oliva (), Maria Blanco and Carlo Giupponi ()

No 2, Serie Working Papers from Universidad del Desarrollo, School of Business and Economics

Abstract: Agriculture could be one of the most vulnerable economic sectors to the impacts of climate change in the coming decades. Considering the critical role that water plays for agricultural production, any shock in water availability will have great implications for agricultural production, land allocation, and agricultural prices. In this paper, an Agricultural Multimarket model is developed to analyze climate change impacts in developing countries, accounting for the uncertainty associated with the impacts of climate change. The model has a structure flexible enough to represent local conditions, resource availability, and market conditions. The results suggest different economic consequences of climate change depending on the specific activity, with many distributional effects across regions.

Keywords: Agricultural Multimarket Model; Climate Change; Agriculture; Water Resources; Uncertainty. (search for similar items in EconPapers)
JEL-codes: Q13 Q54 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2014-10, Revised 2014-11
New Economics Papers: this item is included in nep-agr and nep-env
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