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Scenario-based assessment
of climate change impacts
on agriculture
Gerald C. Nelson
Professor Emeritus, University of Illinois,
Urbana-Champaign
Presentation at the AAAS session New Scenarios for Assessing Future
Climate Change, 26 February 2014
 or how we used the SSPs
(and an RCP) in a model
intercomparison exercise
 or should we do any more
integrated assessments until
we fix the Lamppost problem
Policy questions that need
scenario answers
 What is the future of agricultural prices?
 How will agricultural production evolve?
 How will climate change alter 
 Prices
 Land use
 Trade
 Undernourishment
 Do we have the tools to answer these questions?
Alternate perspectives on future prices with no
climate change, 2000-2050 in 2011
IMPACT  big price increases (e.g. 80%
increase in coarse grains price)
Why do the results differ?
 Differing perspectives on
 Todays unknowns that we should know
 Future unknowns
 Economic development
 Population growth
 Climate change
 Natural resource availability
 Technological advance
 Differing economic modeling approaches
 CGE models more flexible (?)
 Functional forms determine outcomes (e.g., Armington
assumption, demand parameters; ref Bennetts Law)
6
We had no idea which is most
important
7
Scenario harmonization:
Common values for key drivers
 Harmonized four key drivers
 Population from SSP2 and 3
 GDP from SSP2 and 3
 Exogenous component of agricultural yield growth
 Climate change effects on yield growth
 No harmonization on other important drivers
 Three orthogonal comparisons in 2050
 Socioeconomics  SSP2 versus SSP3
 Bioenergy policies  not covered here
 Climate change  no climate change versus RCP 8.5 with no
CO2 fertilization
SSPs:
What did we use and why?
 What?
 SSP2 and SSP3, version 0.5
 GDP, OECD version
 Population
 What not?
 Storylines
 Population makeup
 Urbanization
 Why?
SSP per capita income
Per capita incomes in 2010;
SSP2 and SSP3 in 2050
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
World Developing
East Asia
South Asia Europe &
Central Asia
WB definitions
Middle East &
North Africa
Sub-Saharan
Africa
Latin America
& Caribbean
High Income
2010 SSP2 SSP3
The modeling chain:
From biophysical to socioeconomic
Nelson, et al., PNAS 2013
Results: price changes
between 2005 and 2050 are
smaller, but
Maximum price changes between 2005 and 2050 reduced.
Large differences remain.
General equilibrium Partial equilibrium
2050 price effects from the
socioeconomic
scenarios, with no climate
change
14
Model differ dramatically in their responses
to the negative future of SSP3
Price
declines
Price
increases
Price not
affected
Climate change and
economic responses
Quantity
Price
Demand
Supply
Climate
change shifts
supply to the
left
Initial shortage caused
by climate change
Initial shortage =
big price increase
Final
quantity
Finalprice
Model choices
- Supply response?
- Area
- Yield
- Demand response?
- Where?
- How much trade?
Results from the climate
change scenarios
Comparisons are differences in 2050
outcomes
Mean -17% -11% +11% -2% - 1% -3% +20%
Climate change reduces 2050 yields.
Producers, consumers, & trade partially
compensate
Nelson, et al., PNAS 2013
Final
yield
Biophysical
effect
How do the model distribute their 2050
responses to climate change?
Mostly
area
Mostly
yield
Demand Area Yield
Demand/
Supply
Model
Type
AIM 0.12 0.90 -0.02 0.14 CGE
ENVISAGE 0.17 0.32 0.51 0.2 CGE
FARM 0.04 0.67 0.29 0.04 CGE
GTEM 0.06 0.29 0.65 0.06 CGE
MAGNET 0.1 1.39 -0.49 0.11 CGE
GCAM 0.22 0.78 0 0.28 PE
GLOBIOM 0.49 0.12 0.38 0.98 PE
IMPACT 0.38 0.53 0.09 0.61 PE
MAgPIE -0.01 -0.08 1.09 -0.01 PE
AVERAGE 0.17 0.53 0.3 0.21
Large
demand
Nelson, et al., Agricultural Economics 2014
How plausible are the
ensemble results? Two views
 They are too pessimistic
 GHG concentration pathway with the greatest forcing
(RCP 8.5)
 Crop models assumed constant CO2 concentrations
throughout the period
 They are not too bad
 Actual GHG concentrations similar to RCP 8.5 so far
 Field results from FACE experiments suggest CO2
fertilization effect in the field is less than in the lab
And then there is the
Lamppost Problem
What is missing in our climate
change results?
 The models dont include effects of
 Increasing pest and disease pressure
 Increasing extreme events
 Increasing ozone
 Effects on nutrition
 Models for most crops dont exist
 These could swamp the negative effects already
quantified
What to do about the
Lamppost Problem?
23
Merge the silos!
24
Its not enough for each community to
work together. We need a community
of communities, old and new.
 Standard data protocols, developed together
 Commonly agreed aggregation methods
 Centrally managed data storage
Open the black boxes so they
arent reinvented
25
 Share code within each community
 Identify best versions
 Centrally manage code storage and dissemination
 Identify data needs and develop new sources
Develop 21st century
modeling environment
 Approach depends on topic
 Crop modeling
 Code hierarchy with modular construction
 Plant-level functions (e.g. photosynthesis)
 Species-level functions
 Variety-level functions
 Design with modularity in mind
 Identify critical parameters and data needs at each level
 Talk to the computational biology folks
 Facilitates the needed bulk development of models for fruits
and vegetables
26
Conclusions
 Substance
 RCP8.5 results in lower yields
 Adaptation reduces some of those effects across the
supply and demand side
 Economic models allocate response differently between
supply (area and yield) and demand
 Process
 Existing models/methods are underestimating the effects
of climate change on food security. We urgently need to
address the Lamppost Problem before we do more
assessments.
27

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  • 1. Scenario-based assessment of climate change impacts on agriculture Gerald C. Nelson Professor Emeritus, University of Illinois, Urbana-Champaign Presentation at the AAAS session New Scenarios for Assessing Future Climate Change, 26 February 2014
  • 2. or how we used the SSPs (and an RCP) in a model intercomparison exercise
  • 3. or should we do any more integrated assessments until we fix the Lamppost problem
  • 4. Policy questions that need scenario answers What is the future of agricultural prices? How will agricultural production evolve? How will climate change alter Prices Land use Trade Undernourishment Do we have the tools to answer these questions?
  • 5. Alternate perspectives on future prices with no climate change, 2000-2050 in 2011 IMPACT big price increases (e.g. 80% increase in coarse grains price)
  • 6. Why do the results differ? Differing perspectives on Todays unknowns that we should know Future unknowns Economic development Population growth Climate change Natural resource availability Technological advance Differing economic modeling approaches CGE models more flexible (?) Functional forms determine outcomes (e.g., Armington assumption, demand parameters; ref Bennetts Law) 6
  • 7. We had no idea which is most important 7
  • 8. Scenario harmonization: Common values for key drivers Harmonized four key drivers Population from SSP2 and 3 GDP from SSP2 and 3 Exogenous component of agricultural yield growth Climate change effects on yield growth No harmonization on other important drivers Three orthogonal comparisons in 2050 Socioeconomics SSP2 versus SSP3 Bioenergy policies not covered here Climate change no climate change versus RCP 8.5 with no CO2 fertilization
  • 9. SSPs: What did we use and why? What? SSP2 and SSP3, version 0.5 GDP, OECD version Population What not? Storylines Population makeup Urbanization Why?
  • 10. SSP per capita income Per capita incomes in 2010; SSP2 and SSP3 in 2050 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 World Developing East Asia South Asia Europe & Central Asia WB definitions Middle East & North Africa Sub-Saharan Africa Latin America & Caribbean High Income 2010 SSP2 SSP3
  • 11. The modeling chain: From biophysical to socioeconomic Nelson, et al., PNAS 2013
  • 12. Results: price changes between 2005 and 2050 are smaller, but
  • 13. Maximum price changes between 2005 and 2050 reduced. Large differences remain. General equilibrium Partial equilibrium
  • 14. 2050 price effects from the socioeconomic scenarios, with no climate change 14
  • 15. Model differ dramatically in their responses to the negative future of SSP3 Price declines Price increases Price not affected
  • 16. Climate change and economic responses Quantity Price Demand Supply Climate change shifts supply to the left Initial shortage caused by climate change Initial shortage = big price increase Final quantity Finalprice Model choices - Supply response? - Area - Yield - Demand response? - Where? - How much trade?
  • 17. Results from the climate change scenarios Comparisons are differences in 2050 outcomes
  • 18. Mean -17% -11% +11% -2% - 1% -3% +20% Climate change reduces 2050 yields. Producers, consumers, & trade partially compensate Nelson, et al., PNAS 2013 Final yield Biophysical effect
  • 19. How do the model distribute their 2050 responses to climate change? Mostly area Mostly yield Demand Area Yield Demand/ Supply Model Type AIM 0.12 0.90 -0.02 0.14 CGE ENVISAGE 0.17 0.32 0.51 0.2 CGE FARM 0.04 0.67 0.29 0.04 CGE GTEM 0.06 0.29 0.65 0.06 CGE MAGNET 0.1 1.39 -0.49 0.11 CGE GCAM 0.22 0.78 0 0.28 PE GLOBIOM 0.49 0.12 0.38 0.98 PE IMPACT 0.38 0.53 0.09 0.61 PE MAgPIE -0.01 -0.08 1.09 -0.01 PE AVERAGE 0.17 0.53 0.3 0.21 Large demand Nelson, et al., Agricultural Economics 2014
  • 20. How plausible are the ensemble results? Two views They are too pessimistic GHG concentration pathway with the greatest forcing (RCP 8.5) Crop models assumed constant CO2 concentrations throughout the period They are not too bad Actual GHG concentrations similar to RCP 8.5 so far Field results from FACE experiments suggest CO2 fertilization effect in the field is less than in the lab
  • 21. And then there is the Lamppost Problem
  • 22. What is missing in our climate change results? The models dont include effects of Increasing pest and disease pressure Increasing extreme events Increasing ozone Effects on nutrition Models for most crops dont exist These could swamp the negative effects already quantified
  • 23. What to do about the Lamppost Problem? 23
  • 24. Merge the silos! 24 Its not enough for each community to work together. We need a community of communities, old and new. Standard data protocols, developed together Commonly agreed aggregation methods Centrally managed data storage
  • 25. Open the black boxes so they arent reinvented 25 Share code within each community Identify best versions Centrally manage code storage and dissemination Identify data needs and develop new sources
  • 26. Develop 21st century modeling environment Approach depends on topic Crop modeling Code hierarchy with modular construction Plant-level functions (e.g. photosynthesis) Species-level functions Variety-level functions Design with modularity in mind Identify critical parameters and data needs at each level Talk to the computational biology folks Facilitates the needed bulk development of models for fruits and vegetables 26
  • 27. Conclusions Substance RCP8.5 results in lower yields Adaptation reduces some of those effects across the supply and demand side Economic models allocate response differently between supply (area and yield) and demand Process Existing models/methods are underestimating the effects of climate change on food security. We urgently need to address the Lamppost Problem before we do more assessments. 27

Editor's Notes

  • #6: OECD comparison
  • #23: Image source: http://www.flickr.com/photos/morville/4273477501/.