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

Authors

Roberto Ponce, Universidad del Desarrollo
Ramiro Parrado, Fondazione Eni Enrico Mattei (FEEM), and Euro-Mediterranean Center on Climate Change (CMCC), ItalyFollow
Alejandra Stehr, Universidad de Concepción
Francesco Bosello, Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change and University of MilanFollow

Date of This Version

12-19-2016

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.

Recommended Citation

Ponce, Roberto; Parrado, Ramiro; Stehr, Alejandra; and Bosello, Francesco, "Climate Change, Water Scarcity in Agriculture and the Economy-Wide Impacts in a CGE Framework" (December 19, 2016). Fondazione Eni Enrico Mattei Working Papers. Paper 1166.
https://services.bepress.com/feem/paper1166