Testing 100-Year Global Warming Potentials: Impacts on Compliance Costs and Abatement Profile

The comprehensive approach adopted in the Kyoto Protocol relies on the use of 100-year Global Warming Potentials (GWPs) to convert emissions of various gases to `carbon dioxide (CO<sub>2</sub>) equivalents'. This particular set of weights, or metric, has a limited capacity to handle the large variations in atmospheric adjustment times, and emissions of various gases that are equal in terms of `CO₂ equivalents' will not result in equal climatic effects. In this study, the 100-year GWP metric is assessed in the context of implementing the Kyoto Protocol. Using data from Norway, we explore how abatement policy formulated on the basis of 100-year GWPs compares to policies based on other metrics in terms of compliance costs and abatement profile, that is, the composition of the basket of gases reduced. We found that the costs for Norway change significantly when other metrics are used, but changes in the composition of the basket of gases are moderate. However, since compliance costs can be controlled through other mechanisms for post-Kyoto Protocols, the use of 100-year GWPs versus other metrics has little impact on the general formulation of Norwegian climate policy.     

Methods for exploring management options to reduce greenhouse gas emissions from tropical grazing systems

Increasing atmospheric concentrations of greenhouse gases are expected to result in global climatic changes over the next decades. Means of evaluating and reducing greenhouse gas emissions are being sought. In this study an existing simulation model of a tropical savanna woodland grazing system was adapted to account for greenhouse gas emissions. This approach may be able to be used in identifying ways to assess and limit emissions from other rangeland, agricultural and natural ecosystems.GRASSMAN, an agricultural decision-support model, was modified to include sources, sinks and storages of greenhouse gases in the tropical and sub-tropical savanna woodlands of northern Australia. The modified model was then used to predict the changes in emissions and productivity resulting from changes in stock and burning management in a hypothetical grazing system in tropical northeastern Queensland. The sensitivity of these results to different Global Warming Potentials (GWPs) and emission definitions was then tested.Management options to reduce greenhouse gas emissions from the tropical grazing system investigated were highly sensitive to the GWPs used, and to the emission definition adopted. A recommendation to reduce emissions by changing burning management would be toreduce fire frequency if both direct and indirect GWPs of CO₂, CH₄, N₂O, CO and NO are used in evaluating emissions, but toincrease fire frequency if only direct GWPs of CO₂, CH₄ and N₂O are used. The ability to reduce greenhouse gas emissions from these systems by reducing stocking rates was also sensitive to the GWPs used. In heavily grazed systems, the relatively small reductions in stocking rate needed to reduce emissions significantly should also reduce the degradation of soils and vegetation, thereby improving the sustainability of these enterprises.The simulation studies indicate that it is possible to alter management to maximise beef cattle production per unit greenhouse gases or per unit methane emitted, but that this is also dependent upon the emission definition used. High ratios of liveweight gain per unit net greenhouse gas emission were found in a broadly defined band covering the entire range of stocking rates likely to be used. In contrast, high values of liveweight gain per unit anthropogenic greenhouse gas emission were found only at very low stocking rates that are unlikely to be economically viable.These results suggest that policy initiatives to reduce greenhouse gas emissions from tropical grazing systems should be evaluated cautiously until the GWPs have been further developed and the implications of emission definitions more rigorously determined.     

Relative radiative forcing consequences of global emissions of hydrocarbons, carbon monoxide and NOx from human activities estimated with a zonally-averaged two-dimensional model

A global two-dimensional (altitude-latitude) chemistry transport model is used to follow the changes in the tropospheric distribution of the two major radiatively active trace gases, methane and ozone, following step changes to the sustained emissions of the short-lived trace gases methane, carbon monoxide and non-methane hydrocarbons. The radiative impacts were dependent on the latitude chosen for the applied change in emissions. Step change global warming potentials (GWPs) were derived for a range of short-lived trace gases to describe their time-integrated radiative forcing impacts for unit emissions relative to that of carbon dioxide. The GWPs show that the tropospheric chemistry of the hydrocarbons can produce significant indirect radiative impacts through changing the tropospheric distributions of hydroxyl radicals, methane and ozone. For aircraft, the indirect radiative forcing impact of the NO _x emissions appears to be greater than that from their carbon dioxide emissions. Quantitative results from this two-dimensional model study must, however, be viewed against the known inadequacies of zonally-averaged models and their poor representation of many important tropospheric processes.     

Evaluating Global Warming Potentials with historical temperature

Global Warming Potentials (GWPs) are evaluated with historical temperature by applying them to convert historical CH₄ and N₂O emissions to equivalent CO₂ emissions. Our GWP analysis is based on an inverse estimation using the Aggregated Carbon Cycle, Atmospheric Chemistry, and Climate Model (ACC2). We find that, for both CH₄ and N₂O, indices higher than the Kyoto GWPs (100-year time horizon) would reproduce better the historical temperature. The CH₄ GWP provides a best fit to the historical temperature when it is calculated with a time horizon of 44 years. However, the N₂O GWP does not approximate well the historical temperature with any time horizon. We introduce a new exchange metric, TEMperature Proxy index (TEMP), that is defined so that it provides a best fit to the temperature projection of a given period. By comparing GWPs and TEMPs, we find that the inability of the N₂O GWP to reproduce the historical temperature is caused by the GWP calculation methodology in IPCC using simplifying assumptions for the background system dynamics and uncertain parameter estimations. Furthermore, our TEMP calculations demonstrate that indices have to be progressively updated upon the acquisition of new measurements and/or the advancement of our understanding of Earth system processes.     

The Cost of Using Global Warming Potentials: Analysing the Trade off Between CO2, CH4 and N2O

The metric governing the trade-off between different greenhouse gases in the Kyoto Protocol, the Global Warming Potentials (GWPs), has received ample critique from both scientific and economic points of view. Here we use an integrated climate-economic optimization model to estimate the cost-effective trade-off between CO₂, CH₄ and N₂O when meeting a temperature stabilization target. We then estimate the increased cost from using GWPs when meeting the same temperature target. Although the efficient valuation of the gases differs significantly from their respective GWPs, the potential economic benefit of valuing them in a more correct way amounts to 3.8 percent of the overall costs of meeting the temperature stabilization target in the base case. In absolute value, this corresponds to an additional net present value cost of US$₂₀₀₀100 billion. To corroborate our findings we perform a Monte Carlo-analysis where several key parameters are randomly varied simultaneously. The result from this exercise shows that our main result is robust to a wide range of changes in the key parameter values, giving a median economic loss from using GWPs of 4.2 percent.     

Global Warming Potentials: 1. Climatic Implications of Emissions Reductions

The use of Global Warming Potentials (GWPs) to calculate equivalent carbon dioxide emissions reductions in the climate change context is examined. We find that GWPs are accurate only for short time horizons. Over long time horizons their use implicitly leads to tradeoffs between near-term and long-term climate change. For one of the most policy-relevant cases, comparing reductions in methane and carbon dioxide, the long-term effect on climate of reducing methane emissions is relatively small, at variance with the common perception based on published GWP values.     

Implications of alternative metrics for global mitigation costs and greenhouse gas emissions from agriculture

100-year Global Warming Potentials (GWPs) are used almost universally to compare emissions of greenhouse gases in national inventories and reduction targets. GWPs have been criticised on several grounds, but little work has been done to determine global mitigation costs under alternative physics-based metrics . We used the integrated assessment model MESSAGE to compare emission pathways and abatement costs for fixed and time-dependent variants of the Global Temperature Change Potential (GTP) with those based on GWPs, for a policy goal of limiting the radiative forcing to a specified level in the year 2100. We find that fixed 100-year GTPs would increase global abatement costs (discounted and aggregated over the 21^st century) under this policy goal by 5–20 % relative to 100-year GWPs, whereas time-varying GTPs would reduce costs by about 5 %. These cost differences are smaller than differences arising from alternative assumptions regarding agricultural mitigation potential and much smaller than those arising from alternative radiative forcing targets. Using the land-use model GLOBIOM, we show that alternative metrics affect food production differently in different world regions depending on regional characteristics of future land-use change to meet growing food demand. We conclude that under scenarios of complete participation, the choice of metric has a limited impact on global abatement costs but could be important for the political economy of regional and sectoral participation in collective mitigation efforts, in particular changing costs and gains over time for agriculture and energy-intensive sectors.     

Sensitivity of direct global warming potentials to key uncertainties

The concept of global warming potential was developed as a relative measure of the potential effects on climate of a greenhouse gas as compared to CO₂. In this paper a series of sensitivity studies examines several uncertainties in determination of Global Warming Potentials (GWPs). For example, the original evaluation of GWPs for the Intergovernmental Panel on Climate Change (IPCC, 1990) did not attempt to account for the possible sinks of carbon dioxide (CO₂) that could balance the carbon cycle and produce atmospheric concentrations of CO₂ that match observations. In this study, a balanced carbon cycle model is applied in calculation of the radiative forcing from CO₂. Use of the balanced model produces up to 21% enhancement of the GWPs for most trace gases compared with the IPCC (1990) values for time horizons up to 100 years, but a decreasing enhancement with longer time horizons. Uncertainty limits of the fertilization feedback parameter contribute a 20% range in GWP values. Another systematic uncertainty in GWPs is the assumption of an equilibrium atmosphere (one in which the concentration of trace gases remains constant) versus a disequilibrium atmosphere (one in which the concentration of trace gases varies with time). The latter gives GWPs that are 19 to 32% greater than the former for a 100 year time horizons, depending upon the carbon dioxide emission scenario chosen. Five scenarios are employed: constant-concentration, constant-emission past 1990 and the three IPCC (1992) emission scenarios. For the analysis of uncertainties in atmospheric lifetime (τ) the GWP changes in direct proportion toτ for short-lived gases, but to a lesser extent for gases withτ greater than the time horizontal for the GWP calculation.     

Global warming potentials modified for surface radiative forcing for use in surface energy balance models

The radiative impact of greenhouse gases in warming the Earth varies significantly, depending on whether one considers the forcing at the tropopause or at the surface. Compared to the former, the surface forcing for some greenhouse gases is reduced by the interference of water vapour. Hence, we calculate alternative surface global warming potentials (SGWPs) that are derived from the surface forcing radiation of greenhouse gases for potential use in surface radiative energy balance models (SREBMs). For gases with a large water vapour overlap, the SGWPs are typically 30% smaller than current GWPs; for gases with relatively little overlap, the SGWPs are larger by more than 33%. These results may be used in conjunction with SREBMs as an additional means of calculating climate change, and may lead to an altered emissions budget compared to that outlined by the current Kyoto agreement.     

CH4和N2O的辐射强迫与全球增温潜能

CH₄和N₂O作为主要温室气体,自工业革命以来排放量急剧增加,已经被列入《京都议定书》要求控制它们的排放。本文利用高光谱分辨率的辐射传输模式,计算了CH₄、N₂O在晴空大气和有云大气条件下的瞬时辐射效率和平流层调整的辐射效率,以及它们的全球增温潜能(GWP)和全球温变潜能(GTP),并根据模式结果拟合了CH₄和N₂O的辐射强迫的简单计算公式。本文的研究表明:CH₄和N₂O在有云大气下的平流层调整的辐射效率分别为4.142×10-4 W m-2 ppb-1和3.125×10-3 W m-2 ppb-1 (1ppb=10-9),经大气寿命调整后的辐射效率分别为3.732×10-4 W m-2 ppb-1和2.987×10-3 W m-2 ppb-1,与IPCC(2007)的相应结果高度一致。CH₄和N₂O 100年的全球增温潜能GWP分别为16和266;100年的脉冲排放的全球温变潜能GTPP分别为0.24和233;持续排放的全球温变潜能GTPS分别为18和268。它们在未来全球变暖和气候变化中,影响仅次于CO₂,仍然起着非常关键的作用。     

Learning about parameter and structural uncertainty in carbon cycle models

Uncertainty in the response of the global carbon cycle to anthropogenic emissions plays a key role in assessments of potential future climate change and response strategies. We investigate how fast this uncertainty might change as additional data on the global carbon budget becomes available over the twenty-first century. Using a simple global carbon cycle model and focusing on both parameter and structural uncertainty in the terrestrial sink, we find that additional global data leads to substantial learning (i.e., changes in uncertainty) under some conditions but not others. If the model structure is assumed known and only parameter uncertainty is considered, learning is rather limited if observational errors in the data or the magnitude of unexplained natural variability are not reduced. Learning about parameter values can be substantial, however, when errors in data or unexplained variability are reduced. We also find that, on the one hand, uncertainty in the model structure has a much bigger impact on uncertainty in projections of future atmospheric composition than does parameter uncertainty. But on the other, it is also possible to learn more about the model structure than the parameter values, even from global budget data that does not improve over time in terms of its associated errors. As an example, we illustrate how one standard model structure, if incorrect, could become inconsistent with global budget data within 40 years. The rate of learning in this analysis is affected by the choice of a relatively simple carbon cycle model, the use of observations only of global emissions and atmospheric concentration, and the assumption of perfect autocorrelation in observational errors and variability. Future work could usefully improve the approach in each of these areas.     

Metrics of Climate Change: Assessing Radiative Forcing and Emission Indices

In this paper, we review existing and alternative metrics of climate change, with particular emphasis on radiative forcing and global warming potentials (GWPs), in terms of their scientific performance. Radiative forcing is assessed in terms of questions such as the utility of the concept, uncertainties and sensitivity to key assumptions. The assessment of emission indices focuses on the climate and other resulting impacts (end points) against which emissions are weighted; the extent to which (and how) time dependence is included, with regard to both emission control and impact; how cost issues are dealt with; and the sensitivity of the metrics to various assumptions. It is concluded that the radiative forcing concept is a robust and useful metric of the potential climatic impact of various agents and that there are prospects for improvement by weighing different forcings according to their effectiveness. We also find that although the GWP concept is associated with serious shortcomings, it retains advantages over any of the proposed alternatives in terms of political feasibility. Alternative metrics, however, make a significant contribution to addressing important issues, and this contribution should be taken into account in the further development of refined metrics of climate change.     

集合卡尔曼平滑和集合卡尔曼滤波在污染源反演中的应用

此文目的是讨论污染源反演问题的统计方法.基于Bayes估计理论,该文将资料同化中的集合平滑、集合卡尔曼平滑和集合卡尔曼滤波应用在污染源反演问题中.在详细给出污染源反演的集合平滑、集合卡尔曼平滑和集合卡尔曼滤波的严格数学表达后,用一个简单的模型演示了集合卡尔曼平滑和集合卡尔曼滤波在污染源反演中的可行性,并且通过对比理想试验结果比较了集合卡尔曼平滑和集合卡尔曼滤波方法在反演污染源排放的效果,讨论了观测误差和污染源先验误差估计对反演结果的影响.试验结果表明在观测间隔小和观测误差小的情况下,集合卡尔曼滤波和集合卡尔曼平滑都可以有效地反演出随时间变化的污染源排放.当观测误差增大时,集合卡尔曼滤波和集合卡尔曼平滑的反演效果都有一定降低,但是反演误差的增加少于观测误差的增加,同时集合卡尔曼平滑(Ensemble Kalman smoother,简称EnKS)对观测误差比集合卡尔曼滤波(Ensemble Kalman filter,简称EnKF)更为敏感.当观测时间间隔较大时,EnKF不能对没有观测时的污染源排放进行估计,仅能对有观测时的污染源排放进行较好的反演.而EnKS可以利用观测对观测时刻前的污染源排放进行反演,因此其效果明显好于EnKF,并且在观测时间间隔较大的情况下依然可以较好地反演出污染源排放.试验结果还显示污染源排放的先验误差估计对反演的结果有较大影响.     

Analysis of change in relative uncertainty in GHG emissions from stationary sources for the EU 15

Total uncertainty in greenhouse gas (GHG) emissions changes over time due to “learning” and structural changes in GHG emissions. Understanding the uncertainty in GHG emissions over time is very important to better communicate uncertainty and to improve the setting of emission targets in the future. This is a diagnostic study divided into two parts. The first part analyses the historical change in the total uncertainty of CO₂ emissions from stationary sources that the member states estimate annually in their national inventory reports. The second part presents examples of changes in total uncertainty due to structural changes in GHG emissions considering the GAINS (Greenhouse Gas and Air Pollution Interactions and Synergies) emissions scenarios that are consistent with the EU’s “20-20-20” targets. The estimates of total uncertainty for the year 2020 are made under assumptions that relative uncertainties of GHG emissions by sector do not change in time, and with possible future uncertainty reductions for non-CO₂ emissions, which are characterized by high relative uncertainty. This diagnostic exercise shows that a driving factor of change in total uncertainty is increased knowledge of inventory processes in the past and prospective future. However, for individual countries and longer periods, structural changes in emissions could significantly influence the total uncertainty in relative terms.     

A simple model for estimating methane concentration and lifetime variations

A simple methane model is presented in which lifetime changes are expressed as a function of CH₄ concentration and emissions of NO_x CO and NMHCs. The model parameters define the relative sensitivities of lifetime to these determining factors. The parameterized model is fitted to results from five more complex atmospheric chemistry models and to 1990 IPCC concentration projections. The IPCC data and four of the five models are well fitted, implying that the models have similar relative sensitivities. However, overall sensitivities of lifetime to changes in atmospheric composition vary widely from model to model. The parameterized model is used to estimate the history of past methane emissions, lifetime changes and OH variations, with estimates of uncertainties. The pre-industrial lifetime is estimated to be 15–34% lower than today. This implies that 23–55% of past concentration changes are due to lifetime changes. Pre-industrial emissions are found to be much higher (220–330 TgCH₄/y) than the best estimate of present natural emissions (155 TgCH₄/y). The change in emissions since pre-industrial times is estimated to lie in the range 160–260 TgCH₄/y, compared with the current best guess for anthropogenic emissions of 360 TgCH₄/y. These results imply either that current estimates of anthropogenic emissions are too high and/or that there have been large changes in natural emissions. 1992 IPCC emissions scenarios are used to give projections of future concentration and lifetime changes, together with their uncertainties. For any given emissions scenario, these uncertainties are large. In terms of future radiative forcing and global-mean temperature changes over 1990–2100 they correspond to uncertainties of at least ±0.2 Wm^–2 and ± 0.1° C, respectively.     

Evaluation of the use of photochemical indicators to assess ozone—NOx—VOC sensitivity in the Southwestern Iberian Peninsula

Understanding the chemical links between ozone (O₃) and its two main precursors, nitrogen oxides (NOx) and volatile organic compounds (VOC), is important for designing effective photochemical smog reduction strategies. This chemical relationship will determine which precursor (NOx or VOC) emission reduction will be more effective for decreasing the ozone formation. Under certain conditions, ozone levels decrease as a result of a reduction in NOx emissions but do not respond significantly to changes in VOC emissions (NOx-sensitive condition), while under other conditions ozone concentrations decrease in response to reductions in VOCs and may even increase when NOx emissions are reduced (VOC-sensitive conditions). Indicator species can be used to assess the sensitivity of ozone to changes in the emissions of its precursors. These indicators are species or species ratios involved in ozone photochemistry which reflect the primary chemical process through which the ozone was formed. In this work we use the MM5-CAMx model system to explore the behaviour of various indicator species during two meteorological situations featuring different atmospheric conditions in a complex terrain area. The results show that indicators based on nitrogen compounds (i.e,. NOy and NOz) are suitable for defining the transition range from VOC- to NOx-sensitive chemistry, and that despite the uncertainties associated with the use of chemical indicators, the ratios O₃/NOy and O₃/NOz may provide a simple and useful way to summarize the response of ozone to changes in NOx and VOC emissions in Southwestern Spain.     

Countries’ contributions to climate change: effect of accounting for all greenhouse gases, recent trends, basic needs and technological progress

In the context of recent discussions at the UN climate negotiations we compared several ways of calculating historical greenhouse gas (GHG) emissions, and assessed the effect of these different approaches on countries’ relative contributions to cumulative global emissions. Elements not covered before are: (i) including recent historical emissions (2000–2010), (ii) discounting historical emissions to account for technological progress; (iii) deducting emissions for ‘basic needs’; (iv) including projected emissions up to 2020, based on countries’ unconditional reduction proposals for 2020. Our analysis shows that countries’ contributions vary significantly based on the choices made in the calculation: e.g. the relative contribution of developed countries as a group can be as high as 80 % when excluding recent emissions, non-CO₂ GHGs, and land-use change and forestry CO₂; or about 48 % when including all these emissions and discounting historical emissions for technological progress. Excluding non-CO₂ GHGs and land-use change and forestry CO₂ significantly changes relative historical contributions for many countries, altering countries’ relative contributions by multiplicative factors ranging from 0.15 to 1.5 compared to reference values (i.e. reference contribution calculations cover the period 1850-2010 and all GHG emissions). Excluding 2000–2010 emissions decreases the contributions of most emerging economies (factor of up to 0.8). Discounting historical emissions for technological progress reduces the relative contributions of some developed countries (factor of 0.8) and increases those of some developing countries (factor of 1.2–1.5). Deducting emissions for ‘basic needs’ results in smaller contributions for countries with low per capita emissions (factor of 0.3–0.5). Finally, including projected emissions up to 2020 further increases the relative contributions of emerging economies by a factor of 1.2, or 1.5 when discounting pre-2020 emissions for technological progress.     

The importance of three centuries of land-use change for the global and regional terrestrial carbon cycle

Large amounts of carbon (C) have been released into the atmosphere over the past centuries. Less than half of this C stays in the atmosphere. The remainder is taken up by the oceans and terrestrial ecosystems. Where does the C come from and where and when does this uptake occur? We address these questions by providing new estimates of regional land-use emissions and natural carbon fluxes for the 1700–2000 period, simultaneously considering multiple anthropogenic (e.g. land and energy demand) and biochemical factors in a geographically explicit manner. The observed historical atmospheric CO₂ concentration profile for the 1700 to 2000 period has been reproduced well. The terrestrial natural biosphere has been a major carbon sink, due to changes in climate, atmospheric CO₂, nitrogen and management. Due to land-use change large amounts of carbon have been emitted into the atmosphere. The net effect was an emission of 35 Pg C into the atmosphere for the 1700 to 2000 period. If land use had remained constant at its distribution in 1700, then the terrestrial C uptake would have increased by 142 Pg C. This overall difference of including or excluding land-use changes (i.e. 177 Pg C) comes to more than half of the historical fossil-fuel related emissions of 308 Pg C. Historically, global land-use emissions were predominantly caused by the expansion of cropland and pasture, while wood harvesting (for timber and fuel wood) only played a minor role. These findings are robust even when changing some of the important drivers like the extent of historical land-use changes. Under varying assumptions, land-use emissions over the past three centuries could have increased up to 20%, but remained significantly lower than from other sources. Combining the regional land-use and natural C fluxes, North America and Europe were net C sources before 1900, but turned into sinks during the twentieth century. Nowadays, these fluxes are a magnitude smaller than energy- and industry-related emissions. Tropical regions were C neutral prior to 1950, but then accelerated deforestation turned these regions into major C sources. The energy- and industry-related emissions are currently increasing in many tropical regions, but are still less than the land-use emissions. Based on the presented relevance of the land-use and natural fluxes for the historical C cycle and the significance of fossil-fuel emissions nowadays, there is a need for an integrated approach for energy, nature and land use in evaluating possible climate change mitigation policies.     

Multi-factor impact analysis of agricultural production in Bangladesh with climate change

Diverse vulnerabilities of Bangladesh's agricultural sector in 16 sub-regions are assessed using experiments designed to investigate climate impact factors in isolation and in combination. Climate information from a suite of global climate models (GCMs) is used to drive models assessing the agricultural impact of changes in temperature, precipitation, carbon dioxide concentrations, river floods, and sea level rise for the 2040–2069 period in comparison to a historical baseline. Using the multi-factor impacts analysis framework developed in Yu et al. (2010), this study provides new sub-regional vulnerability analyses and quantifies key uncertainties in climate and production. Rice (aman, boro, and aus seasons) and wheat production are simulated in each sub-region using the biophysical Crop Environment REsource Synthesis (CERES) models. These simulations are then combined with the MIKE BASIN hydrologic model for river floods in the Ganges-Brahmaputra-Meghna (GBM) Basins, and the MIKE21 Two-Dimensional Estuary Model to determine coastal inundation under conditions of higher mean sea level. The impacts of each factor depend on GCM configurations, emissions pathways, sub-regions, and particular seasons and crops. Temperature increases generally reduce production across all scenarios. Precipitation changes can have either a positive or a negative impact, with a high degree of uncertainty across GCMs. Carbon dioxide impacts on crop production are positive and depend on the emissions pathway. Increasing river flood areas reduce production in affected sub-regions. Precipitation uncertainties from different GCMs and emissions scenarios are reduced when integrated across the large GBM Basins’ hydrology. Agriculture in Southern Bangladesh is severely affected by sea level rise even when cyclonic surges are not fully considered, with impacts increasing under the higher emissions scenario.     

Implications of global emission policy scenarios for domestic agriculture: a New Zealand case study

Agricultural GHG mitigation policies are important if ambitious climate change goals are to be achieved, and have the potential to significantly lower global mitigation costs [Reisinger, A., Havlik, P., Riahi, K., van Vliet, O., Obersteiner, M., & Herrero, M. (2013). Implications of alternative metrics for global mitigation costs and greenhouse gas emissions from agriculture. Climatic Change, 117, 677–690]. In the post-Paris world of ‘nationally determined contributions’ to mitigation, the prospects for agricultural mitigation policies may rest on whether they are in the national economic interest of large agricultural producers. New Zealand is a major exporter of livestock products; this article uses New Zealand as a case study to consider the policy implications of three global policy scenarios at the global, national and farm levels. Building on global modelling, a model dairy farm and a model sheep and beef farm are used to estimate the changes in profit when agricultural emissions are priced and mitigated globally or not, and priced domestically or not, in 2020. Related to these scenarios is the metric or GHG exchange rate. Most livestock emissions are non-CO₂, with methane being particularly sensitive to the choice of metric. The results provide evidence that farm profitability is more sensitive to differing international policy scenarios than national economic welfare. The impact of the choice of metric is not as great as the impact of whether other countries mitigate agricultural emissions or not. Livestock farmers do best when agricultural emissions are not priced, as livestock commodity prices rise significantly due to competition for land from forestry. However, efficient farmers may still see a rise in profitability when agricultural emissions are fully priced worldwide.

Policy relevance

Exempting agricultural emissions from mitigation significantly increases the costs of limiting warming to 2 °C, placing the burden on other sectors. However, there may be a large impact on farmers if agricultural emissions are priced domestically when other countries are not doing the same. The impacts of global and national climate policies on farmers need to be better understood in order for climate policies to be politically sustainable. Transitional assistance that is not linked to emission levels could help, as long as the incentives to mitigate are maintained. In the long run, efficient farmers may benefit from climate policy; international efforts should focus on mitigation options and effective domestic policy development, rather than on metrics.