JP

We study how stochasticity in the evolution of agricultural productivity interacts with economic and population growth at the global level. We use a two-sector Schumpeterian model of growth, in which a manufacturing sector produces the traditional consumption good and an agricultural sector produces food to sustain contemporaneous population. Agriculture demands land as an input, itself treated as a scarce form of capital. In our model both population and sectoral technological progress are endogenously determined, and key technological parameters of the model are structurally estimated using 1960–2010 data on world GDP, population, cropland and technological progress. Introducing random shocks to the evolution of total factor productivity in agriculture, we show that uncertainty optimally requires more land to be converted into agricultural use as a hedge against production shortages, and that it significantly affects both optimal consumption and population trajectories.

Northern Eurasia is made up of a complex and diverse set of physical, ecological, climatic and human systems, which provide important ecosystem services including the storage of substantial stocks of carbon in its terrestrial ecosystems. At the same time, the region has experienced dramatic climate change, natural disturbances and changes in land management practices over the past century. For these reasons, Northern Eurasia is both a critical region to understand and a complex system with substantial challenges for the modeling community. This review is designed to highlight the state of past and ongoing efforts of the research community to understand and model these environmental, socioeconomic, and climatic changes. We further aim to provide perspectives on the future direction of global change modeling to improve our understanding of the role of Northern Eurasia in the coupled human-Earth system. Modeling efforts have shown that environmental and socioeconomic changes in Northern Eurasia can have major impacts on biodiversity, ecosystems services, environmental sustainability, and the carbon cycle of the region, and beyond. These impacts have the potential to feedback onto and alter the global Earth system. We find that past and ongoing studies have largely focused on specific components of Earth system dynamics and have not systematically examined their feedbacks to the global Earth system and to society. We identify the crucial role of Earth system models in advancing our understanding of feedbacks within the region and with the global system. We further argue for the need for integrated assessment models (IAMs), a suite of models that couple human activity models to Earth system models, which are key to address many emerging issues that require a representation of the coupled human-Earth system.

We evaluate the potential for using border carbon adjustments (BCAs) and welfare-maximizing tariffs to compel non-compliant countries to meet emissions reduction targets pledged under the Paris Climate Agreement. Our analysis employs a numerical economy-wide model with energy sector detail and, given recent actions by the new US administration, considers BCAs on US exports. We find that BCAs result in small reductions in US emissions and welfare. Consequently, the US is better off when it does not restrict emissions and faces BCAs on its exports than when it implements policies consistent with the Paris Agreement. However, targeted welfare-maximizing tariffs could inflict greater cost on the US than if it complied with its pledged emissions reductions. We conclude that BCAs are an ineffective enforcement mechanism but carefully chosen tariffs could be a mechanism to enforce the Paris Agreement.

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