FEEM working papers "Note di lavoro" series
2016 .079

Climate Change, Water Scarcity in Agriculture and the Economy-Wide Impacts in a CGE Framework


Authors: Roberto Ponce, Ramiro Parrado, Alejandra Stehr, Francesco Bosello
Series: Climate Change: Economic Impacts and Adaptation
Editor: Francesco Bosello
Keywords: CGE Models, Climate Change, Agriculture, Irrigation, Water Resources
JEL n.: C68, Q54, Q15, Q25

Abstract

This paper analyzes the economic impacts of changes in water availability due to climate change. We develop a new modeling approach as an alternative to include water as a production factor within a global CGE model. We tailor the structure of the ICES model to characterize the key features of the world economy with a detailed representation of the agricultural sector. In order to reach this objective, a new database has been built to explicitly consider water endowments, precipitation changes, and unitary irrigation costs. Results suggest different economic consequences of climate change depending on the specific region. Impacts are related to change in crop production, endowment demands, and international trade.

***

Suggested citation: Ponce, R., R. Parrado, A. Stehr, F. Bosello, (2016), 'Climate Change, Water Scarcity in Agriculture and the Economy-Wide Impacts in a CGE Framework', Nota di Lavoro 79.2016, Milan, Italy: Fondazione Eni Enrico Mattei

Download file
Download PDF file

FEEM Update

Subscribe to stay connected.

Your personal data will be processed by Fondazione Eni Enrico Mattei. – data Controller – with the aim of emailing the FEEM newsletter. The use of Your email address is necessary for the implementation of the newsletter service. You are invited to read the Privacy Policy in order to obtain additional information about the protection of Your rights.

This Website uses technical cookies and cookie analytics, as well as “third party” profiling cookies.
If you close this banner or you decide to continue navigating on this Website, you express consent to the use of cookies. If you need additional information or you wish to express selective choices on the use of cookies, please refer to the   Cookie PolicyI agree