Source: UNIVERSITY OF CALIFORNIA, DAVIS submitted to NRP
AGRICULTURE AND CLIMATE CHANGE: IMPACT, ADAPTATION AND MITIGATION ASSESSMENTS
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
1020013
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Oct 1, 2019
Project End Date
Sep 30, 2024
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UNIVERSITY OF CALIFORNIA, DAVIS
410 MRAK HALL
DAVIS,CA 95616-8671
Performing Department
Agricultural and Resource Economics
Non Technical Summary
This project supports the mission of the Agricultural Experiment Station by addressing the Hatch Act area(s) of: plant and animal production, protection, and health; sustainable agriculture.Climate change represents one of the more pressing challenges of our time. Agriculture is one of the economic sectors most vulnerable to climate change because weather is a significant input in agricultural production systems. A large and growing body of research has investigated the effects of climate change on agricultural productivity and agricultural income. The bulk of this research, however, has focused either on broad economic indicators such as farm-level profits or regional farmland values or on the yields of annual field crops such as corn. The empirical evidence from this research suggests potentially large impacts on US agriculture.Research on the impacts of climate change on perennial and specialty crops, or on animal agriculture, is limited, as is research on climate change impacts in irrigated systems and in other parts of the world. Methods that address the effects of climate change on field crops such as maize cannot be straightforwardly applied to perennial crops, whose phenology typically responds to weather events in complex ways and over multiple years. Results obtained for rain-fed field crops are not directly transposable to irrigated production systems. Because California derives a large share of its agricultural income from specialty crops, research that focuses specifically on such crops is warranted. Another peculiarity of specialty crops is that the demand facing California farmers is likely more inelastic for such crops than for major field crops, making market adjustments more relevant to ultimate welfare impacts.In addition, impacts of climate change in other world regions matter for California, because California agriculture is well integrated into world markets. Even if climate change were bad for California agricultural productivity, if impacts were to be worse in other parts of the world, California could still gain from climate change through increases in world agricultural prices.Another poorly understood area is that of adaptation to climate change. In this project we will develop empirical tools to assess adaptation strategies with a view to increase the resilience of agricultural systems to climatic changes. The role of markets in shaping climate change impacts and providing adaptation pathways is also poorly understood, and we will seek to address this gap. We will also seek to address the role of irrigation in buffering against climate change.Finally, the literature on climate change mitigation from agriculture, that is, on the ways that agriculture could contribute to reductions in greenhouse gas emissions, is still scarce. This is however a very relevant subject in California, who leads the nation in terms of climate policy and has plans to contain emissions from agriculture. There are large gaps in scientific knowledge regarding (i) the economic potential of California agriculture to reduce greenhouse gas emissions and (ii) the best ways to induce these emission reductions through policy. This project seeks to fill this gap in order to inform state policy.This project is directly related to the Hatch area of plant and animal production as it seeks to understand how weather and climate have affected agricultural output in the past and how a new climate will influence agricultural production. It is related to the Hatch area of sustainable agriculture insofar as it seeks to understand how farming systems may successfully adapt to a changing climate.
Animal Health Component
75%
Research Effort Categories
Basic
25%
Applied
75%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6012410209020%
6036050301010%
6056050301010%
6066050301015%
9016050209020%
6106110301015%
6116120301010%
Goals / Objectives
The overall objective of the project is to improve our understanding of the impacts of climate change on agricultural productivity and agricultural markets, as well as adaptation mechanisms and ways that agriculture could contribute to climate change mitigation. The specific objectives are:1. To predict the likely impacts of climate change on the productivity of various agricultural systems and on related agricultural markets, including (but not limited to) California specialty crops and irrigated crops;2. To investigate possible climate change adaptation pathways;3. To investigate the economic potential of agriculture to contribute to climate change mitigation through carbon sequestration and reductions in greenhouse gases emissions, and develop policy recommendations.
Project Methods
The methods used will differ according to the specific objectives being pursued. For climate change impact predictions, the gold standard in the field is to use econometric models on historical data and project effects into the future using a wide range of available climate change scenarios. Similar techniques could be used to address the question of adaptation, although the literature is less settled on this aspect. Part of our proposed work consists of extending the econometric approach to account for climatic adaptation of agricultural systems in impact assessment studies.Regarding mitigation, mathematical programming techniques offer advantages over econometrics, notably their lesser reliance on large datasets and their ability to model detailed behavioral responses such as input intensity adjustments at the crop level. This last point is crucial as changes in agricultural management practices (fertilization rates, tillage) can lead to substantial changes in net GHG emissions from fields.Cost-benefit analyses relying on survey data may be used to assess the feasibility of new adaptation or mitigation techniques.

Progress 10/01/19 to 09/30/20

Outputs
Target Audience:My efforts reached the Congressional Budget Office, specifically two analysts working on a white paper titled "CBO's projection of the effect of climate change on U.S. economic output" (CBO working paper 2020-06). I had a phone interview with the authors of the white paper and I am acknowledged in the acknowledgment section. My work has been helpful to the authors in interpreting existing estimates of climate impacts on U.S. gross domestic product. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?During the reporting period, my work reached out beyond the peer academic audience. I was interviewed by phone by two economists at the Congressional Budget Office to discuss my paper "Climate econometrics: Can the panel approach account for long-run adaptation." I gave a guest lecture in a course on California agriculture open to master and PhD students from a variety of programs on the Davis campus. The topic of that lecture was climate change and California agriculture. The lecture was based on a book chapter I co-wrote in the book "California agriculture: Dimensions and Issues" published by the Giannini Foundation of Agricultural Economics. What do you plan to do during the next reporting period to accomplish the goals?First, I plan on pushing through the publication process the papers that are currently in revision and in preparation. Second, I am on sabbatical in France between January and June to work on a project titled "Climate change and agriculture: Advancing the econometric approach to impact and adaptation assessments." This project is closely related to my AES project, therefore I hope to develop new collaborative work with researchers at INRAE and other French institutions during this time that will contribute to the goals.

Impacts
What was accomplished under these goals? During the reporting period, I advanced my work on empirical estimation of climate damages in three major ways. First, my co-author Matthew Gammans and I made very significant revisions to our paper "Climate econometrics: Can the panel approach account for long-run adaptation," which is now conditionally accepted at the American Journal of Agricultural Economics. I anticipate that the article will be formally published in 2021. Second, with another co-author (Emmanuel Paroissien) we produced a new working paper that relaxes some of the structural assumptions embedded in our previous piece (and most existing literature) to propose and implement a new method for climate impact evaluation that accounts for long-run adaptation. This work is still in progress, but it has been presented to the California climate research community and discussed at a professional conference. I anticipate that a version ready for submission will be available during the next reporting period. Third, my co-authors and I are revising our paper on double-cropping as an adaptation strategy in the United States. This paper should also be submitted during the next reporting period. Finally, I have been working with another co-author (Cloe Garnache) on a slightly different project that looks at the distributional effects of environmental policy (including carbon policies) from a general equilibrium perspective. This work is currently under revision for resubmission to the Journal of the Association of Environmental and Resource Economists.

Publications

  • Type: Journal Articles Status: Other Year Published: 2021 Citation: Pierre Merel and Matthew Gammans. Climate econometrics: Can the panel approach account for long-run adaptation? Conditionally accepted at the American Journal of Agricultural Economics.
  • Type: Journal Articles Status: Other Year Published: 2021 Citation: Matthew Gammans, Pierre Merel and Ariel Ortiz-Bobea. Double-cropping as an adaptation to climate change in the United States. manuscript in preparation.
  • Type: Journal Articles Status: Other Year Published: 2021 Citation: Matthew Gammans, Pierre Merel and Emmanuel Paroissien. Reckoning climate damages along an envelope. manuscript in preparation.
  • Type: Journal Articles Status: Other Year Published: 2021 Citation: Cloe Garnache and Pierre Merel. Environmental policy in general equilibrium: New insights from a canonical model. Revisions requested from the Journal of the Association of Environmental and Resource Economists.