Browsing by Author "Giupponi, Carlo"
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Item The economic impacts of climate change on the Chilean agricultural sector. A non-linear agricultural supply model(01/12/2014) Ponce Oliva, Roberto; Blanco, María; Giupponi, CarloAgriculture could be one of the most vulnerable economic sectors to the impacts of climate change in the coming decades, with impacts threatening agricultural production in general and food security in particular. Within this context, climate change will impose a challenge to policy makers, especially in those countries that based their development on primary sectors. In this paper we present a non-linear agricultural supply model for the analysis of the economic impacts of changes in crop yields due to climate change. The model accounts for uncertainty through the use of Monte Carlo simulations about crop yields. According to our results, climate change impacts on the Chilean agricultural sector are widespread, with considerable distributional consequences across regions, and with fruits producers being worst-off than crops producers. In general, the results reported here are consistent with those reported by previous studies showing large economic impacts on the northern zone. However, our model does not simulate remarkable economic consequences at the country level as previous studies didItem Welfare Effects of Water Variability in Agriculture. Insights from a Multimarket Model(2015) Ponce Oliva, Roberto; Blanco, María; Giupponi, CarloThe purpose of this research is to assess the welfare effects of climate change on the Chilean agricultural sector, with special focus on changes in water availability. The productive impacts of climate change on the agricultural sector are well analyzed at both a global and national level. There is, however, a lack of evidence about the aggregated impacts, considering both demand and supply. This study tries to fill this gap by using a multimarket model, specifically designed for the Chilean agricultural sector. According to our results, changes in water availability will have modest welfare impacts, with an average decrease of total surplus of 4.3%, minor price changes (around −1%), and no significant impacts on total agricultural land. Despite the small aggregated effects, it is expected that climate change will have uneven consequences across regions and activities. For instance, even though the southern zone (zone 3) shows the smallest income changes −14% (average), the impacts within the zone range from 1% to 52% decrease in agricultural net income. This situation suggests large distributional consequences of climate change for the Chilean agricultural sector.