Farm waters run deep: a coupled positive multi-attribute utility programming and computable general equilibrium model to assess the economy-wide impacts of water buyback

Abstract Little is known about the economy-wide repercussions of water buyback, which may include relevant feedbacks on the output of economic sectors at a regional and supra-regional scale. Limited studies available rely on stand-alone Computable General Equilibrium (CGE) models that represent competition for water explicitly, but this approach presents significant data and methodological challenges in areas where mature water markets are not in place –the case of most regions worldwide. To bridge this gap, this paper couples a microeconomic Positive Multi-Attribute Utility Programming (PMAUP) model that elicits the value and price share to water with a macroeconomic, regionally-calibrated CGE model for Spain. Methods are illustrated with a case study in the Murcia Region in southeastern Spain. Economy-wide feedbacks amplify income losses in Murcia's agriculture from −20.5% in the PMAUP model up to −33% in the coupled PMAUP-CGE model. Compensations paid to irrigators enhance demand in the region, but supply contraction in agriculture and related sectors lead to overall GDP losses (up to −2.1%) in most scenarios. The supply gap is partially filled in by other Spanish regions, which experience a GDP gain through a substitution effect (up to +.034%). In all scenarios, aggregate GDP for Spain decreases (up to −.023%)

New damage curves and multimodel analysis suggest lower optimal temperature

Economic analyses of global climate change have been criticized for their poor representation of climate change damages. Here we develop and apply aggregate damage functions in three economic Integrated Assessment Models (IAMs) with different degrees of complexity. The damage functions encompass a wide but still incomplete set of climate change impacts based on physical impact models. We show that with medium estimates for damage functions, global damages are in the range of 10% to 12% of GDP by 2100 in a baseline scenario with 3 °C temperature change, and about 2% in a well-below 2 °C scenario. These damages are much higher than previous estimates in benefit-cost studies, resulting in optimal temperatures below 2 °C with central estimates of damages and discount rates. Moreover, we find a benefit-cost ratio of 1.5 to 3.9, even without considering damages that could not be accounted for, such as biodiversity losses, health and tipping points

World tariff liberalization in agriculture: An assessment using a global CGE trade model for EU15 regions

This paper aims at modeling a global CGE trade model for the EU15 subnational regions. This model is used to assess production reallocation across sectors in each EU15 region, assuming a scenario in which world tariff liberalization is implemented in the agricultural sector. The model is parsimonious in terms of data, focusing on unskilled and skilled labor as the source of heterogeneity across regions. A stylized model is built to interpret trade policy effects. Results show decreases in agricultural production in the EU15 of about 0.93%. All regions reduce agriculture but show different magnitudes in the relative changes of production. Large reallocation effects are observed between manufactures and services, some regions specializing in the former and others in the latter. In addition, the introduction of labor mobility within the EU15 and the EU27 causes strong amplification effects in manufactures and services

An integrated approach for the estimation of agricultural drought costs

This study proposes a novel method to assess the overall economic effects of agricultural droughts using a coupled agronomic-economic approach that accounts for the direct and indirect impacts of this hazard in the economy. The proposed methodology is applied to Italy, where years showing different drought severity levels were analysed. Agricultural drought stress was measured using the fraction of Absorbed Photosynthetically Active Radiation (fAPAR). Using a comprehensive, field-level dataset on agricultural yields, fAPAR-based statistical models were applied to major Italian crops and direct crop productivity impacts were estimated. Local-level, crop-dependent productivity shocks were fed into a regionalised Computable General Equilibrium model specifically calibrated for the Italian economy. Direct and indirect aggregate impacts after allowing for inter-regional trade and input reallocation were obtained. Total estimated damages ranged from 0.55 to 1.75 billion euro, depending on the overall drought severity experienced, while regional losses showed large spatial variability. Although most of the losses were concentrated on agriculture, other related sectors, such as food industry manufacturing and wholesale services, were also substantially affected. Moreover, our simulations suggested the presence of a land-use substitution effect from less to more drought-resistant crops following a drought. This study sheds light on the characterisation of the total damages caused by droughts while provides a tool with applicability in the implementation of drought risk management plans and the evaluation of drought management policies

Role of carbon sources for in vitro plant growth and development

In vitro plant cells, tissues and organ cultures are not fully autotrophic establishing a need for carbohydrates in culture media to maintain the osmotic potential, as well as to serve as energy and carbon sources for developmental processes including shoot proliferation, root induction as well as emission, embryogenesis and organogenesis, which are highly energy demanding developmental processes in plant biology. A variety of carbon sources (both reducing and non-reducing) are used in culture media depending upon genotypes and specific stages of growth. However, sucrose is most widely used as a major transport-sugar in the phloem sap of many plants. In micropropagation systems, morphogenetic potential of plant tissues can greatly be manipulated by varying type and concentration of carbon sources. The present article reviews the past and current findings on carbon sources and their sustainable utilization for in vitro plant tissue culture to achieve better growth rate and development

Incremental water charging in agriculture. A case study of the Regione Emilia Romagna in Italy

This paper explores the role that incremental water charging (temporary levies on water use) can play in reducing the environmental costs that arise during drought events. The paper combines a multi-attribute Revealed Preference Model calibrated at a local level (Agricultural District) and a regionally-calibrated Computable General Equilibrium model to estimate the impacts of incremental water charging on water use, water withdrawals and market income. The methodology is applied to the particular case of Italy's Emilia Romagna Region. Results provide a basis for the assessment of tradeoffs in water conservation. (C) 2015 Elsevier Ltd. All rights reserved