Assessing the Benefits of Global Climate Stabilization Within an Integrated Modeling Framework

Abstract:

Increasing atmospheric carbon dioxide levels, higher temperatures, altered precipitation patterns, and other climate change impacts have already begun to affect US agriculture and forestry, with impacts expected to become more substantial in the future. There have been a number of studies of climate change impacts on agriculture or forestry. However, relatively few studies explore climate change impacts on both agriculture and forests simultaneously, including the interactions between alternative land uses and implications for market outcomes. Additionally, there is a lack of detailed analyses of the effects of stabilization scenarios relative to unabated emissions scenarios. Such analyses are important for developing estimates of the benefits of those stabilization scenarios, which can play a vital role in assessing tradeoffs associated with allocating resources across alternative mitigation and adaptation activities. We provide an analysis of the potential benefits of global climate change mitigation for US agriculture and forestry through 2100, accounting for landowner decisions regarding land use, crop mix, and management practices. The analytic approach involves a combination of climate models, a crop process model (EPIC), a dynamic vegetation model used for forests (MC1), and an economic model of the US forestry and agricultural sector (FASOM-GHG). We find substantial impacts on productivity, commodity markets, and consumer and producer welfare for the stabilization scenario relative to unabated climate change, though the magnitude and direction of impacts vary across regions and commodities. Although there is variability in welfare impacts across climate simulations, we find positive net benefits from stabilization in all cases, with cumulative impacts ranging from $32.7 billion to $54.5 billion over the period 2015-2100. Our estimates contribute to the literature on potential benefits of GHG mitigation and can help inform policy decisions weighing alternative mitigation and adaptation actions.