title: The impact of high-end climate change on agricultural welfare.
abstract: Climate change threatens agricultural productivity worldwide, resulting in higher food prices. Associated economic gains and losses differ not only by region but also between producers and consumers and are affected by market dynamics. On the basis of an impact modeling chain, starting with 19 different climate projections that drive plant biophysical process simulations and ending with agro-economic decisions, this analysis focuses on distributional effects of high-end climate change impacts across geographic regions and across economic agents. By estimating the changes in surpluses of consumers and producers, we find that climate change can have detrimental impacts on global agricultural welfare, especially after 2050, because losses in consumer surplus generally outweigh gains in producer surplus. Damage in agriculture may reach the annual loss of 0.3% of future total gross domestic product at the end of the century globally, assuming further opening of trade in agricultural products, which typically leads to interregional production shifts to higher latitudes. Those estimated global losses could increase substantially if international trade is more restricted. If beneficial effects of atmospheric carbon dioxide fertilization can be realized in agricultural production, much of the damage could be avoided. Although trade policy reforms toward further liberalization help alleviate climate change impacts, additional compensation mechanisms for associated environmental and development concerns have to be considered.
authors: Sustainable Solutions, Potsdam Institute for Climate Impact Research (PIK), 14412 Potsdam, Germany.; Technische Universität Berlin, 10623 Berlin, Germany.
authors: Miodrag
authors: M
authors: Stevanović
authors: Sustainable Solutions, Potsdam Institute for Climate Impact Research (PIK), 14412 Potsdam, Germany.
authors: Alexander
authors: A
authors: Popp
authors: Climate Impacts and Vulnerabilities, PIK, 14412 Potsdam, Germany.; Humboldt-Universität zu Berlin, 10099 Berlin, Germany.
authors: Hermann
authors: 0000-0002-0003-5508
authors: H
authors: Lotze-Campen
authors: Sustainable Solutions, Potsdam Institute for Climate Impact Research (PIK), 14412 Potsdam, Germany.
authors: Jan Philipp
authors: JP
authors: Dietrich
authors: Climate Impacts and Vulnerabilities, PIK, 14412 Potsdam, Germany.
authors: Christoph
authors: 0000-0002-9491-3550
authors: C
authors: Müller
authors: Sustainable Solutions, Potsdam Institute for Climate Impact Research (PIK), 14412 Potsdam, Germany.; Technische Universität Berlin, 10623 Berlin, Germany.
authors: Markus
authors: M
authors: Bonsch
authors: Climate Impacts and Vulnerabilities, PIK, 14412 Potsdam, Germany.
authors: Christoph
authors: C
authors: Schmitz
authors: Climate Impacts and Vulnerabilities, PIK, 14412 Potsdam, Germany.; Commonwealth Scientific and Industrial Research Organization, St. Lucia, 4067 Queensland, Australia.
authors: Benjamin Leon
authors: BL
authors: Bodirsky
authors: Sustainable Solutions, Potsdam Institute for Climate Impact Research (PIK), 14412 Potsdam, Germany.; Technische Universität Berlin, 10623 Berlin, Germany.
authors: Florian
authors: 0000-0003-2927-9407
authors: F
authors: Humpenöder
authors: Climate Impacts and Vulnerabilities, PIK, 14412 Potsdam, Germany.
authors: Isabelle
authors: I
authors: Weindl
mesh_terms: D000383:Agriculture; D002245:Carbon Dioxide / Q000378:metabolism*; D057231:Climate Change / Q000191:economics*; D003132:Commerce / Q000191:economics; D003198:Computer Simulation; D018556:Crops, Agricultural / Q000191:economics*; D004777:Environment; D005523:Food Supply / Q000191:economics; D006801:Humans; D008962:Models, Theoretical
chemical_list: D002245:Carbon Dioxide
keywords: Agriculture; Climate Change Adaptation; Welfare Economics; climate change impacts; international trade