Climate Change and Agriculture: Economic Impacts

Environmental Economics and Policy, Q1, Q2, Q3, Q4,

DYNAMIC SUPPLY RESPONSE AND AGRICULTURAL INVESTMENT: DISCUSSION

Resource /Energy Economics and Policy,

ECONOMETRIC-PROCESS MODELS FOR INTEGRATED ASSESSMENT OF AGRICULTURAL PRODUCTION SYSTEMS

This paper develops the conceptual and empirical basis for a class of empirical economic production models that can be linked to site-specific bio-physical models for use in integrated assessment research. Site-specific data are used to estimate econometric production models, and these data and models are then incorporated into a simulation model that represents the decision making process of the farmer as a sequence of discrete or continuous land use and input use decisions. This discrete/continuous structure of the econometric process model is able to simulate decision making both within and outside the range of observed data in a way that is consistent with economic theory and with site-specific bio-physical constraints and processes. An econometric-process model of the dryland grain production system of the Northern Plains demonstrates the capabilities of this type of model.bio-physical models, integrated assessment, production models, dryland grain production, econometric-process models, Production Economics, C5, Q1, Q2,

PHYSICAL AND ECONOMIC MODEL INTEGRATION FOR MEASUREMENT OF THE ENVIRONMENTAL IMPACTS OF AGRICULTURAL CHEMICAL USE

Environmental Economics and Policy,

AGRICULTURE AS A MANAGED ECOSYSTEM: POLICY IMPLICATIONS

One of the greatest challenges facing agriculture for the foreseeable future is to resolve conflicts caused by a growing competition for the services of the soil, water, and other natural resources on which agriculture depends-driven by growing demands for food, fiber, and for nonagricultural services these resources provide. To meet this challenge, research is needed which is integrated across the relevant sciences to better understand and predict the properties of agricultural production systems in all of the dimensions that have come to be represented by the concept of sustainability. If we were to achieve this capability to analyze agriculture as a managed ecosystem, it would be possible to move beyond the current regime of agricultural policies, driven largely by interest-group politics, toward science-based policies that recognize the tradeoffs associated with competing uses of natural resources.Environmental Economics and Policy,

OPTIMAL SPATIAL SCALE FOR EVALUATING ECONOMIC AND ENVIRONMENTAL TRADEOFFS

This paper develops a conceptual framework that can provide a scientific foundation for formulating policies that consider environmental and economic tradeoffs. It addresses a critical problem recognized in the environmental sciences, namely, choosing the appropriate spatial scale for measurement and analysis of spatially variable economic and biophysical processes.scale, carbon sequestration, agriculture, economic policy, Environmental Economics and Policy, Industrial Organization,

Agriculture's Role in Greenhouse Gas Mitigation

Examines technical, economic, and policy trends. Explores efforts to encourage farmers to adopt new agricultural practices that reduce agricultural greenhouse gas emissions. Reviews biofuel options, and related policy implications

ECONOMETRIC PRODUCTION MODELS WITH ENDOGENOUS INPUT TIMING: AN APPLICATION TO ECUADORIAN POTATO PRODUCTION

In this article, a model was developed in which the quantity and timing of input and harvest decisions are endogenous. The endogenous timing model allows all of the information about input and harvest behavior to be utilized, and it provides a basis for linking econometric production analysis to the time-specific analyses in other scientific disciplines used to assess the environmental or human health impacts of agricultural production practices. The case study of fungicide use on Ecuadorian potatoes was conducted with a unique data set containing detailed information on both quantity and timing of input use. The results showed that both quantity and timing of chemical use were responsive to economic variables.Crop Production/Industries,

THE KYOTO PROTOCOL: ECONOMIC EFFECTS OF ENERGY PRICES ON NORTHERN PLAINS DRYLAND GRAIN PRODUCTION

This study examined possible economic impacts on Northern Plains grain producers of policies that could be undertaken by the United States to comply with the Kyoto Protocol. The paper begins with a discussion of the potential effects of the Kyoto Protocol on prices of energy and inputs used in agricultural production. The next section describes the data and econometric models that were used to develop a field-scale, stochastic simulation model of the crop production system typical of the Northern Plains. This model is based on econometric production models estimated with a spatially referenced, statistically representative sample of farmers in Montana. The simulation analysis shows that the impacts of higher energy prices would tend to discourage the use of fallow, raise variable costs of production by 3 to 13%, and reduce net returns above variable cost by 6 to 18% in the case of spring wheat grown on fallow, Under the higher cost scenarios assumed in an analysis conducted by the Farm Bureau, production costs for spring wheat on fallow would increase by 15 to 27% and net returns would decline by 15 to 24%.Resource /Energy Economics and Policy,

CONTRACTING FOR SOIL CARBON CREDITS: DESIGN AND COSTS OF MEASUREMENT AND MONITORING

Many firms anticipate that a cap on greenhouse gas emissions will eventually be imposed, either through an international agreement like the Kyoto protocol or through domestic policy, and have started to take voluntary actions to reduce their emissions. If agricultural producers participate in the emerging market for tradable C-credits, it must be possible to verify that actions farmers take do increase the amount of C in soils and this increase can be maintained over the length of the contract. In this paper we develop a prototype measurement and monitoring scheme for C-credits sequestered in agricultural soils and estimate its costs for the small grain-producing region of Montana using an econometric-process simulation model. Three key results emerge from the prototype framework. First, the efficiency of measurement and monitoring procedures for agricultural soil C sequestration depends on the price of C credits. Second, we find that at all price levels, costs of measuring and monitoring are largest in areas that exhibit the greatest heterogeneity in carbon values. Third, in a case study application of our prototype measurement and monitoring scheme, we find that if we assume similar error and confidence levels as forestry contracts, the upper estimate of measurement and monitoring costs associated with a contract that pays farmers per tonne of C sequestered is 3% of the value of a C-credit. This cost is small relative to the estimated net value of the contract. Thus we conclude that measurement and monitoring costs are not likely to be large enough to prevent producers from participating in a market for tradable credits.Environmental Economics and Policy,