1887

OECD Food, Agriculture and Fisheries Papers

Selected studies on various food, agriculture and fisheries issues from the OECD Trade and Agriculture Directorate.

NB. No. 1 to No. 58 were released under the previous series title OECD Food, Agriculture and Fisheries Working Papers.

English

Modelling Policy Coherence Between Adaptation, Mitigation and Agricultural Productivity

This paper develops theoretical and quantitative analysis to identify the potential synergies and trade-offs inherent in various policy instruments that address agricultural productivity, climate change mitigation and adaptation, and water quality objectives. The theoretical model used describes crop production choices made by farmers given different sets of government policies and whereby crop yields can be impacted by climate change. Quantitative results on the basis of Finnish data show that decoupled area payment appears to provide more trade-offs than other policy instruments as it increases greenhouse gas (GHG) emissions and nutrient runoff, and decrease total factor productivity and social welfare relative to a situation with no policy. Nitrogen fertiliser tax, a soil GHG emission tax, and a subsidy for green set-aside perform well with respect to all other objectives with the exception of adaptation to climate change. These policy instruments significantly reduce GHG emissions and nutrient runoff, and thus their social welfare performance is high.

English

Keywords: mitigation, fertilizer tax, Risk, adaptation, nutrient runoff, emission tax, decoupled payment, crop insurance
JEL: Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: Government Policy; Q18: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Agricultural Policy; Food Policy; Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters and Their Management; Global Warming
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error