Cap-and-trade of water rights: A sustainable way out of Australia's rural water problems?

Trading water rights is a tool for re-allocation of water resources in water-scarce regions such as Australia. Tradable water rights help farmers to act flexibly when facing high fluctuations in water availability and to use the water in a sustainable and environmentally friendly manner. A precondition is that the quantity of water rights is capped at an appropriate level. The institutional arrangements and market structures in which water-right trading is embedded are key factors for the success of such water management instruments. By analysing the structure of the water-right market and water caps as well as using results from explorative expert interviews, the article sheds light on potential problems with the Australian cap-and-trade scheme concerning sustainable water usage. It also asks whether the Australian scheme provides lessons to be learnt by other countries facing similar problems

How tight are the limits to land and water use? - Combined impacts of food demand and climate change

In the coming decades, world agricultural systems will face serious transitions. Population growth, income and lifestyle changes will lead to considerable increases in food demand. Moreover, a rising demand for renewable energy and biodiversity protection may restrict the area available for food production. On the other hand, global climate change will affect production conditions, for better or worse depending on regional conditions. In order to simulate these combined effects consistently and in a spatially explicit way, we have linked the Lund-Potsdam-Jena Dynamic Global Vegetation Model (LPJ) with a "Management model of Agricultural Production and its Impact on the Environment" (MAgPIE). LPJ represents the global biosphere with a spatial resolution of 0.5 degree. MAgPIE covers the most important agricultural crop and livestock production types. A prototype has been developed for one sample region. In the next stage this will be expanded to several economically relevant regions on a global scale, including international trade. The two models are coupled through a layer of productivity zones. In the paper we present the modelling approach, develop first joint scenarios and discuss selected results from the coupled modelling system

How tight are the limits to land and water use? - Combined impacts of food demand and climate change

In the coming decades, world agricultural systems will face serious transitions. Population growth, income and lifestyle changes will lead to considerable increases in food demand. Moreover, a rising demand for renewable energy and biodiversity protection may restrict the area available for food production. On the other hand, global climate change will affect production conditions, for better or worse depending on regional conditions. In order to simulate these combined effects consistently and in a spatially explicit way, we have linked the Lund-Potsdam-Jena Dynamic Global Vegetation Model (LPJ) with a "Management model of Agricultural Production and its Impact on the Environment" (MAgPIE). LPJ represents the global biosphere with a spatial resolution of 0.5 degree. MAgPIE covers the most important agricultural crop and livestock production types. A prototype has been developed for one sample region. In the next stage this will be expanded to several economically relevant regions on a global scale, including international trade. The two models are coupled through a layer of productivity zones. In the paper we present the modelling approach, develop first joint scenarios and discuss selected results from the coupled modelling system

The impact of climate change on incomes and convergence in Africa

© 2019 Elsevier Ltd Climate change is projected to detrimentally affect African countries’ economic development, while income inequalities across economies is among the highest on the planet. However, it is projected that income levels would converge on the continent. Hitherto there is limited evidence on how climate change could affect projected income convergence, accelerating, slowing down, or even reversing this process. Here, we analyze convergence considering climate-change damages, by employing an economic model embedding the three dimensions of risks at the country-level: exposure, vulnerability and hazards. The results show (1) with historical mean climate-induced losses between 10 and 15 percent of GDP per capita growth, the majority of African economies are poorly adapted to their current climatic conditions, (2) Western and Eastern African countries are projected to be the most affected countries on the continent and (3) As a consequence of these heightened impacts on a number of countries, inequalities between countries are projected to widen in the high warming scenario compared to inequalities in the low and without warming scenarios. To mitigate the impacts of economic development and inequalities across countries, we stress (1) the importance of mitigation ambition and Africa's leadership in keeping global mean temperature increase below 1.5 °C, (2) the need to address the current adaptation deficit as soon as possible, (3) the necessity to integrate quantitatively climate risks in economic and development planning and finally (4) we advocate for the generalization of a special treatment for the most vulnerable countries to access climate-related finance. The analysis raises issues on the ability of African countries to reach their SDGs targets and the potential increasing risk of instability, migration across African countries, of decreased trade and economic cooperation opportunities as a consequence of climate change – exacerbating its negative consequences

The impact of climate change on incomes and convergence in Africa

© 2019 Elsevier Ltd Climate change is projected to detrimentally affect African countries’ economic development, while income inequalities across economies is among the highest on the planet. However, it is projected that income levels would converge on the continent. Hitherto there is limited evidence on how climate change could affect projected income convergence, accelerating, slowing down, or even reversing this process. Here, we analyze convergence considering climate-change damages, by employing an economic model embedding the three dimensions of risks at the country-level: exposure, vulnerability and hazards. The results show (1) with historical mean climate-induced losses between 10 and 15 percent of GDP per capita growth, the majority of African economies are poorly adapted to their current climatic conditions, (2) Western and Eastern African countries are projected to be the most affected countries on the continent and (3) As a consequence of these heightened impacts on a number of countries, inequalities between countries are projected to widen in the high warming scenario compared to inequalities in the low and without warming scenarios. To mitigate the impacts of economic development and inequalities across countries, we stress (1) the importance of mitigation ambition and Africa's leadership in keeping global mean temperature increase below 1.5 °C, (2) the need to address the current adaptation deficit as soon as possible, (3) the necessity to integrate quantitatively climate risks in economic and development planning and finally (4) we advocate for the generalization of a special treatment for the most vulnerable countries to access climate-related finance. The analysis raises issues on the ability of African countries to reach their SDGs targets and the potential increasing risk of instability, migration across African countries, of decreased trade and economic cooperation opportunities as a consequence of climate change – exacerbating its negative consequences

N2O emissions from the global agricultural nitrogen cycle – current state and future scenarios

Reactive nitrogen (Nr) is not only an important nutrient for plant growth, thereby safeguarding human alimentation, but it also heavily disturbs natural systems. To mitigate air, land, aquatic, and atmospheric pollution caused by the excessive availability of Nr, it is crucial to understand the long-term development of the global agricultural Nr cycle. For our analysis, we combine a material flow model with a land-use optimization model. In a first step we estimate the state of the Nr cycle in 1995. In a second step we create four scenarios for the 21st century in line with the SRES storylines. Our results indicate that in 1995 only half of the Nr applied to croplands was incorporated into plant biomass. Moreover, less than 10 per cent of all Nr in cropland plant biomass and grazed pasture was consumed by humans. In our scenarios a strong surge of the Nr cycle occurs in the first half of the 21st century, even in the environmentally oriented scenarios. Nitrous oxide (N2O) emissions rise from 3 Tg N2O-N in 1995 to 7–9 in 2045 and 5–12 Tg in 2095. Reinforced Nr pollution mitigation efforts are therefore required

Description of a coupled macroeconomic, multi-sector analysis at global scale with first simulation results

Deliverable D.7.1 Description of a coupled macroeconomic, multi-sector analysis at global scale with first simulation results and D.7.2 Description of the linked modelling system of sector models and multi-sector assessments are now available. These deliverables should be seen and read in together. D.7.1 describes results for 4 marker scenarios from the global models in the topdown analysis in WP7, which provide the boundary conditions for in-depth analysis at the level of EU-27, individual member countries as well as sub-national levels while D7.2 presents selected results from the linked modelling system. The 4 marker scenarios will also provide a starting point for a larger number of policy scenarios to be analyzed in the next steps of the VOLANTE project. The VOLANTE top-down modelling framework has been developed to serve the stakeholder discussions and roadmapping in module Visions by adequate information that can fuel discussions and provide quantitative assessments to support the final roadmapping exercise. Selected scenario results have already been used in 4 visions workshops which have been conducted by Module Visions in June and September 2012

The impact of high-end climate change on agricultural welfare

Climate change threatens agricultural productivity worldwide, resulting in higher food prices. Associated economic gains and losses differ not only by region but also between producers and consumers and are affected by market dynamics. On the basis of an impact modeling chain, starting with 19 different climate projections that drive plant biophysical process simulations and ending with agro-economic decisions, this analysis focuses on distributional effects of high-end climate change impacts across geographic regions and across economic agents. By estimating the changes in surpluses of consumers and producers, we find that climate change can have detrimental impacts on global agricultural welfare, especially after 2050, because losses in consumer surplus generally outweigh gains in producer surplus. Damage in agriculture may reach the annual loss of 0.3% of future total gross domestic product at the end of the century globally, assuming further opening of trade in agricultural products, which typically leads to interregional production shifts to higher latitudes. Those estimated global losses could increase substantially if international trade is more restricted. If beneficial effects of atmospheric carbon dioxide fertilization can be realized in agricultural production, much of the damage could be avoided. Although trade policy reforms toward further liberalization help alleviate climate change impacts, additional compensation mechanisms for associated environmental and development concerns have to be considered