Systemic Input-Output Computation of Green and Blue Virtual Water 'Flows' with an Illustration for the Mediterranean Region

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Climate Change, Tourism and Water Resources in the Mediterranean: a General Equilibrium Analysis

This paper presents and discusses some quantitative results obtained in assessing the economic impact of variations in tourism flows, induced by climate change, for some Mediterranean countries. Estimates by a regional climate model are used to build a Tourism Climate Index, which indicates the suitability of climate, in certain locations, for general outdoor activities. As climate change is expected to affect a number of variables like temperature, wind and precipitations, it will have consequences on the degree of attractiveness of touristic destinations. We estimate the macroeconomic consequences of changing tourism flows by means of a computable general equilibrium model. We found that more incoming tourists will increase income and welfare, but this phenomenon will also induce a change in the productive structure, with a decline in agriculture and manufacturing, partially compensated by an expansion of service industries. We found that, in most countries, the decline in agriculture entails a lower demand for water, counteracting the additional demand for water coming from tourists and bringing about a lower water consumption overall

Economic Impacts of Climate Change in Italy and the Mediterranean: Updating the Evidence

This study presents new estimates of economic impacts of climate change for Italy and other countries, obtained with a full-fledged Integrated Assessment Model (ENVISAGE), developed at the World Bank. This model is qualitatively superior to other models used in the past for the same purpose. It is found out that climate change is expected to reduce the Italian GDP in 2050, with respect to a reference baseline, by -0.31%. This figure is about two times higher than previous estimates. Declining tourism demand is the main driver of negative effects on GDP, as Italy would become less attractive as a tourist destination. By the end of the century, however, Italy would also experience severe losses in agricultural production, due to increased temperature and reduced water availability. Even if Italy will notably be affected by climate change, in the absence of any mitigation or adaptation effort, other countries in the Mediterranean will experience larger economic impacts. This is the case of Spain and Middle East – North Africa

Modeling Firm Heterogeneity in International Trade: Do Structural Effects Matter?

This paper analyzes the qualitative properties of a multisectoral, multiregional computable general equilibrium model where some industries include heterogeneous firms as in Melitz (2003). The model, formulated according to Roson and Oyamada (2014), adds endogenous productivity effects to a standard Walras-Ricardian framework. We argue that the in- clusion of such effects changes the magnitude and distribution of welfare benefits obtainable by reductions in trade barriers, due to of comparative advantages. We illustrate the point through a numerical example, in which alternative model formulations are assessed. A standard neoclassic GE model, a basic Melitz model and a hybrid model are then compared. The three model versions are all calibrated with the same data set and an identical simulation experiment (a 50% reduction of transport costs between two regions) is carried out in the three cases. The results show that the hybrid model displays the largest welfare gains, as it combines Ricardian comparative advantages with Melitz average productivity improvements. However, they also show that new effects, not present in the original Ricardo and Melitz frameworks, are at a work

Action du chlorure de sodium sur la composition des baies de vigne cultivées en hors-sol

La variété Cabernet Sauvignon greffée sur 101-14 a été cultivée en milieu hydroponique et alimentée par une solution nutritive équilibrée (témoin) surchargée en chlorure de sodium (6, 40 et 80 meq∙l-1) durant trois années consécutives. A forte dose, un effet dépressif se manifeste sur le rendement en baies, accompagne par l'acceleration de la maturation; aux autres doses, le NaCl provoque une augmentation du rendement. La teneur en sucres croit avec la richesse du milieu en NaCl, alors que le taux des composés phénoliques et des tanins est maximum pour les faibles doses de NaCl et l'acidite totale relativementstable.Influence of sodium chloride on the composition of berries in hydroponically grown grapevinesPlants of Vitis vinifera Cabernet Sauvignon clone no. 161 grafted on rootstock 101-14 M.G. clone no. 13 were grown hydroponically for 3 years in a balanced nutrient solution, in the presence of 6, 40 and 80 meq∙l-1 of NaCl. 6 and 40 meq∙l-1 of sodium chloride in the nutrient solution had beneficial effects on the plant biomass, and also on the yield, but growth and yield of berries were impaired by 80 meq∙l-1 NaCl doses, whereas maturation occurred earlier. The concentration of sugar and tartaric acid increased with the sodium chloride dose whereas phenolic compounds, tannins and malic acid decreased. Total acidity was rather constant

Bargaining Power and Value Sharing in Distribution Networks: A Cooperative Game Theory Approach

This paper illustrates a methodology for analyzing bargaining games on network markets, by means of numerical models that can be calibrated with real data. Economic incentives to join or to expand a network depend on how the network surplus is being distributed, which in turn depends on a variety of factors: position of each agent (e.g., a country) in a specific network, its reliability in the cooperation scheme (e.g., geo-political stability), existence of market distortions and availability of outside options (e.g., alternative energy sources). This study is aimed at presenting a game theory methodology that can be applied to real world cases, having the potential to shed light on several political economy issues. The methodology is presented and illustrated with application to a fictitious network structure. The method is based on a two-stage pro- cess: first, a network optimization model is used to generate payoff values under different coalitions and network structures; a second model is subsequently employed to identify cooperative game solutions. Any change in the network structure entails both a variation in the overall welfare level and in the distribution of surplus among agents, as it affects their relative bargaining power. Therefore, expected costs and benefits, at the aggregate as well as at the individual level, can be compared to assess the economic viability of any investment in network infrastructure. A number of model variants and extensions are also considered: changing demand, exogenous instability factors, market distortions, externalities and outside options

Economy-wide analysis of food waste reductions and related costs

Reducing food waste has become a policy priority in recent years as many studies show that a significant amount of food is wasted at various stages of the food supply chain. However, the economic impacts of food waste reduction have not been studied in depth as most of the studies in the literature ignore the cost and feedback effects. The aim of this report is to develop a general framework to analyse the economic impacts of reducing food waste in EU28 in both a global and a regional context in support of the EU policy making process on food waste reduction. For the purposes of this study, we employ the CGEBox toolbox which is a flexible, extendable, and modular code basis for CGE modelling. The default configuration of CGEBox used in this study covers the global economy with a detailed representation of the agriculture and food production sector whereas the EU28 is modelled at NUTS-II level. The impact of a food waste reduction equal to 5% of the intermediate input use of food processing sectors under two different cost assumptions is analysed in the scenarios. Firstly, in the cost neutral scenario, we assume that the cost of reducing food waste is equal to the monetary savings for the food processing industry. Secondly, in the pessimistic scenario, we assume that the cost of reducing food waste is twice as much as the cost savings made by reducing food waste. The results suggest that a unilateral commitment by the EU to reducing food loss and waste would most likely decrease the competitiveness of the EU’s food processing. Reduced demand for primary agricultural inputs would shrink the EU’s agricultural sectors, putting pressure on farm incomes and land prices. The contribution to global food security would be very minor. The impact on emissions relevant to climate change at global level is also minor, with a very limited contribution within the EU