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GTAP Resource #6995

"Agricultural support and climate change mitigation: data and modelling application"
by Valin, Hugo, Benjamin Henderson and Jussi Lankoski

Agriculture faces a complex and unique challenge in relation to climate change. It is among the sectors the most exposed to climate change, but it is also an important source of greenhouse gas (GHG) emissions, which requires rapid action. A significant public support is currently dedicated to the sector, including USD 500 billion in the form of government expenditure, 59% of which goes directly to individual producers. This current pool of budgetary support is a substantial resource, which policy makers could use to shape a more sustainable future agricultural sector.

This paper aims at identifying best agricultural policy reform options for climate change mitigation, by analysing the structure and impact of agricultural support on greenhouse gas emissions. It adds to the literature by integrating the latest data on agricultural support from the OECD, analysed at policy line level, into a computable general equilibrium framework, METRO-PEM, specifically designed for this type of assessments.

The three groups of reform options are investigated in the paper - removing budgetary support, decoupled producer support from production, with or without environmental cross compliance, and investing into targeted solutions, either via productivity growth or emissions abatement technologies.

Resource Details (Export Citation) GTAP Keywords
Category: 2023 Conference Paper
Status: Not published
By/In: Presented during the 26th Annual Conference on Global Economic Analysis (Bordeaux, France)
Date: 2023
Created: Valin, H. (4/15/2023)
Updated: Valin, H. (4/15/2023)
Visits: 421
- Model extension/development
- Climate change policy
- Agricultural policies

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