Publications

Planned expansion of transportation infrastructure in Brazil has implications for the pattern of agricultural production and carbon emissions
Planned expansion of transportation infrastructure in Brazil has implications for the pattern of agricultural production and carbon emissions

High transportation costs have been a barrier to the expansion of agriculture in the interior of Brazil. To reduce transportation costs, Brazil launched the National Logistics Plan, aiming to expand its railway network by up to 91% by 2035. Such a large-scale infrastructure investment raises concerns about its economic and environmental consequences. By combining geospatial estimation of transportation cost with a grid-resolving, multi-scale economic model that bridges fine-scale crop production with its trade and demand from national and global perspectives, we explore impacts of transportation infrastructure expansion on agricultural production, land use changes, and carbon emissions both locally and nationally in Brazil. We find that globally, the impacts on output and land use changes are small. However, within Brazil, the plan’s primary impacts are impressive. PNL2035 results in the reduction of transportation costs by 8–23 % across states (depending on expansion’s extent) in the interior Cerrado biome. This results in cropland expansion and increases in terrestrial carbon emissions in the Cerrado region. However, the increase in terrestrial carbon emissions in the Cerrado is offset by spillover effects elsewhere in Brazil, as crop production shifts away from the Southeast-South regions and accompanying change in the mix of transportation mode for farm products from roadway to more emission-efficient railway. Furthermore, we argue that the transportation infrastructure’s impact on the enhanced mobility of labor and other agricultural inputs would further accentuate the regional shift in agricultural production and contribute to carbon emission mitigation. Upon its completion, PNL2035 is expected to result in the reduction of net national emissions by 1.8–30.7 million metric ton of CO2-equivalent, depending on the impacts on labor and purchased input mobility. We conclude that the omission of spillover effects due to infrastructure expansion can lead to misleading assessments of transport policies.

How Will Global Agriculture and Food Security Respond to Future Socioeconomic Shocks?

The demand- and supply-side drivers connected to the “shared socioeconomic pathways” (SSP) will impact future agriculture. Assessing the projected impacts of those drivers on regional and global agriculture requires approaches that goes beyond the traditional biophysical sciences’ methods and tools. The present work uses a static partial equilibrium model for global agriculture that incorporates into the analysis the effects of economic responses to scarcity affecting regional and global agricultural production and land use. By 2050, agricultural output will expand, but at different rates depending on the region and on the SSP-productivity scenario. Yield gains will consolidate as a major driver, but cropland expansion will still play an important role, especially in Sub-Saharan Africa. The SSP1 (Sustainability), fast technological development scenario, offers a promising perspective to increase global agricultural output and reduce pressures for cropland expansion. Under SSP1 scenario, food insecurity would drop the most, to 2.8% of world population by 2050. Achieving the Sustainability scenario will require an articulated global effort to strengthening agricultural R&D expenditures accompanied by a well-designed strategy to translate science into problem-solving knowledge and technologies that could be successfully transferred and adopted by farmers to boost productivity gains over the next three decades.

Panorama das emissões de metano e implicações do uso de diferentes métricas

Transportation Cost, Agricultural Production and Cropland Expansion in Brazil: A Multi-scale Analysis

Transportation cost has played an increasingly important role in Brazil agriculture, as the agricultural production frontier expands to inland area with less developed transportation network. High transportation cost would result in less agricultural profitability, which further reduces input use and causes lower yield. To deal with this problem, Brazil has set ambitious plan on improving transportation infrastructure, but its impact on agricultural production and deforestation remains unknown. To research the implications of transportation cost for Brazil agriculture and environment, we developed an innovation method of estimating transportation cost on spatial level for Brazil, and research the impact of projected transportation cost reduction with a grid-resolving partial equilibrium model on Brazilian agriculture, on national, state level and spatial level. Results indicates that the reduction of transportation cost causes moderate increase in both crop production and cropland expansion. However, that impact shows strong variance on State level, causing concentration of input allocations and output production to states of Mato Grosso and Bahia. Finally, spatial pattern within each state are also identified, which would contribute to local-targeted agricultural and transportation policy making.

Climate Change Impacts on Agriculture in Latin America and the Caribbean - An Application of the Integrated Economic-Environmental Modeling (IEEM) Platform

In this paper, we assess the economy-wide impact of Climate Change (CC) on agriculture and food security in 20 Latin American and the Caribbean (LAC) countries. Specifically, we focus on the following three channels through which CC may affect agricultural and non-agricultural production (i) agricultural yields. (ii) labor productivity in agriculture, and (iii) economy-wide labor productivity. We implement the analysis using the Integrated Economic-Environmental Model (IEEM) and databases for 20 LAC available through the OPEN IEEM Platform. Our analysis identifies those countries most affected according to key indicators including Gross Domestic Product (GDP), international commerce, sectoral output, poverty, and emissions. Most countries experience negative impacts on GDP, with the exception of the major soybean producing countries, namely, Brazil, Argentina and Uruguay. We find that CC-induced crop productivity and labor productivity changes affect countries differently. The combined impact, however, indicates that Belize, Nicaragua, Guatemala and Paraguay would fare the worst. Early identification of these hardest hit countries can enable policy makers pre-empting these effects and beginning the design of adaptation strategies early on. In terms of greenhouse gas emissions, only Argentina, Chile and Uruguay would experience small increases in emissions.

Water in the Balance - The Economic Impacts of Climate Change and Water Scarcity in the Middle East

Innovations in water management and irrigated agriculture powered water-scarce Middle Eastern economies for millennia. However, as water becomes scarcer because of population growth and economic development, and even more erratic because of climate change, the region’s water security is coming under increasing threat. This report applies an economic model, the Global Trade Analysis Project (GTAP) computable general equilibrium model, to assess the economic impacts of water scarcity for six Middle Eastern countries and also to examine how water-use efficiency improvements and trade can mitigate these impacts. A 20 percent reduction in water supply could decrease GDP by up to 10 percent, compared to 2016 levels. Furthermore, increased water scarcity could reduce labor demand by up to 12 percent and lead to significant land-use changes, including loss of beneficial hydrological services. The report emphasizes how the growing dependence on shared water resources reinforces the need to manage water across boundaries. The message is clear - unless new and transformative policies for sustainable, efficient and cooperative water management are promoted, water scarcity will negatively impact the region’s economic prospects and undermine its human and natural capital.

Climate Impacts on Agriculture: Searching for Keys under the Streetlight

This paper provides a critical assessment of the literature estimating the consequences of climate impacts in agriculture and the food system. This literature focuses overwhelmingly on the impact of elevated CO2 concentrations in the atmosphere, higher temperatures and changing precipitation on staple crop yields. While critically important for food security, we argue that researchers have gravitated to measuring impacts ‘under the streetlight’ where data and models are plentiful. We argue that prior work has largely neglected the vast majority of potential economic impacts of climate change on agriculture. A broader view must extend the impacts analysis to inputs beyond land, including the consequences of climate change for labor productivity, as well as the rate of total factor productivity growth in the face of more rapidly depreciating knowledge capital. This broader view must also focus more attention on non-staple crops, which, while less important from a caloric point of view, are critically important in redressing current micronutrient deficiencies in many diets around the world. The paper closes with numerical simulations that demonstrate the extent to which limited input and output coverage of climate impacts can lead to considerable underestimation of the consequences for food security and economic welfare – particularly in the poorest regions of the world.

Climate Impacts in Agriculture: A Broader View

This paper provides a critical assessment of the literature estimating the consequences of climate impacts in agriculture and the food system. This literature focuses overwhelmingly on the impact of elevated CO2 concentrations in the atmosphere, higher temperatures and changing precipitation on staple crop yields. While critically important for food security, we argue that researchers have gravitated to measuring impacts ‘under the streetlight’ where data and models are plentiful. We argue that prior work has largely neglected the vast majority of potential economic impacts of climate change on agriculture. A broader view must extend the impacts analysis to inputs beyond land, including the consequences of climate change for labor productivity, as well as the rate of total factor productivity growth in the face of more rapidly depreciating knowledge capital. This broader view must also focus more attention on non-staple crops, which, while less important from a caloric point of view, are critically important in redressing current micronutrient deficiencies in many diets around the world. The paper closes with numerical simulations that demonstrate the extent to which limited input and output coverage of climate impacts can lead to considerable underestimation of the consequences for food security and economic welfare – particularly in the poorest regions of the world.

Climate Impacts on Agriculture: Searching for Keys under the Streetlight
Climate Impacts on Agriculture: Searching for Keys under the Streetlight

This paper provides a critical assessment of the literature estimating the consequences of climate impacts in agriculture and the food system. This literature focuses overwhelmingly on the impact of elevated CO2 concentrations in the atmosphere, higher temperatures and changing precipitation on staple crop yields. While critically important for food security, we argue that researchers have gravitated to measuring impacts ‘under the streetlight’ where data and models are plentiful. We argue that prior work has largely neglected the vast majority of potential economic impacts of climate change on agriculture. A broader view must extend the impacts analysis to inputs beyond land, including the consequences of climate change for labor productivity, as well as the rate of total factor productivity growth in the face of more rapidly depreciating knowledge capital. This broader view must also focus more attention on non-staple crops, which, while less important from a caloric point of view, are critically important in redressing current micronutrient deficiencies in many diets around the world. The paper closes with numerical simulations that demonstrate the extent to which limited input and output coverage of climate impacts can lead to considerable underestimation of the consequences for food security and economic welfare – particularly in the poorest regions of the world.

Como superar a crise que está por vir

Global Futures: Modelling the global economic impacts of environmental change to support policy-making

Global Futures is a landmark study using cutting-edge modelling to explore the global economic impacts of natural capital depletion. It warns of potential risks to the world’s economic prosperity if we don’t act urgently to halt nature loss. The study uses new economic and environmental modelling to calculate the costs of nature’s decline across 140 countries and all key industry sectors. Taking six crucial ecosystem services that nature provides (including the supply of water for agriculture; supply of timber; marine fisheries; pollination of crops; protection from flooding, storm surges and erosion; and carbon storage to help protect us from climate change), the report analyses the future costs to world economies of failing to act on the destruction of our environment and biodiversity loss. This innovative method of analysis was created through a partnership between WWF, the Global Trade Analysis Project (GTAP) and the Natural Capital Project. Global Futures adds significant new weight to warnings that the continued loss of nature under ‘business as usual’ will have severe economic consequences, and that investing in nature is essential for future global economic prosperity. The work comes at a critical time, marking the start of a landmark year in which a series of global policy decisions will be made that will shape humanity’s development and our relationship with nature for decades to come. We hope that this report, alongside other evidence, will encourage and enable world leaders to take decisive action to restore nature for our future prosperity before it is too late.

Projeções de Impactos dos Sistemas iLPF sobre Mudanças no Uso da Terra no Brasil

Plano ABC - custo econômico e uso da terra

Issues in land use change in Brazil