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Global biodiversity is projected to further decline under a wide range of future socio-economic development pathways, even in sustainability oriented scenarios. This raises the question how biodiversity can be put on a path to recovery, the core challenge for the CBD post-2020 global biodiversity framework. We designed two contrasting, ambitious global conservation strategies, ‘Half Earth’ (HE) and ‘Sharing the Planet’ (SP), and evaluated their ability to restore terrestrial and freshwater biodiversity and to provide ecosystem services while also mitigating climate change and ensuring food security. We applied the integrated assessment framework IMAGE with the GLOBIO biodiversity model, using the ‘Middle of the Road’ Shared Socio-economic Pathway (SSP2) with its projected human population growth as baseline.We found that both conservation strategies result in a reduction in the loss of biodiversity and ecosystem services globally, but without additional measures to achieve effective climate mitigation they will be insufficient to restore biodiversity. The HE strategy performs better for terrestrial biodiversity protection (biodiversity intactness (MSA), Red List Index, geometric mean abundance) in currently still natural regions, reflecting global conservation priorities. The SP strategy yields more improvements for biodiversity in human-used areas, aquatic biodiversity and for regulating ecosystem services (pest control, pollination, erosion control), reflecting regional priorities. However, ‘conservation only’ scenarios show a considerable increase in food security risks (especially in Sub-Saharan Africa) compared to the baseline and limited reduction of global temperature increase. Only when conservation strategies are combined with climate change mitigation efforts and additional actions especially in the agricultural and energy system into a portfolio of ‘integrated sustainability measures’, both conservation strategies result in restoring biodiversity to current values or even some improvement, while keeping global warming below two degrees and keeping food security risks below baseline. Minimizing food wastes and reducing consumption of animal products will be crucial

The pressure on land is growing in many regions of the world, due to the increasing demand for arable crops, meat and dairy products, bio-energy and timber, and is exacerbated by land degradation and climate change. This policy report provides scenario projections for the UNCCD Global Land Outlook, exploring future changes to the use and condition of land and the resulting impacts on food, water, climate change and biodiversity.

This report presents a global integrated assessment of the range of potential economic impacts of climate change and stringent mitigation measures in the agricultural sector. The analysis employs five global multi-region multi-commodity models and covers selected combinations of socioeconomic storylines and climate signals by mid-century. Model inputs are harmonised by using the same projections for population and GDP growth, as well as relative biophysical crop yield changes due to climate change. Model results can differ depending on model characteristics and the specific quantitative implementations of the socioeconomic storylines., JRC.D.4-Economics of Agriculture

The REDD policy which preserves, enables substantial emission reductions. Since agricultural production and area expansion is a primary driver of tropical deforestation, REDD policies might limit the expansion possibilities of agricultural land use and therefore influence competitiveness, agricultural prices, trade, production and food security the world. This paper studies the impact of REDD policies on the agri-food sector and food security with a global CGE model called MAGNET. It focuses on the restrictions on agricultural land expansion within the REDD policy package. Simulation results show that REDD policies start to affect the agri-food sector in some lower developed countries if more than 15% of potentially available agricultural areas are protected from deforestation. A stringent REDD policy that protects 90% of land reserves that could potentially be used for agriculture production results in a global real agricultural price increase of almost 6%, and a worldwide agricultural production decrease of 1.5%.

The paper examines the economic effects of expected changes in temperatures and precipitation on the trade of ten major food crops. The relative effects for developing versus developed countries are emphasized. A series of econometric models using panel data and autoregressive integrated moving average models are used to estimate and forecast relationships between yields and weather data, the results of which are used as input into MAGNET, a global computerized general equilibrium modeling framework. Econometric results show that average temperatures have increased across all areas growing major food crops. Results for precipitation are ambiguous, however, there is statistical evidence of two distinct periods, a first in which, on average, precipitation fell, followed by a second in which it increased. Results for crops with statistically significant estimates show that increasing temperatures have negatively affected yields.These results hold for both poor and rich countries, however, the degree to which yields are reduced is crop specific and sensitive to a country’s level of wealth. MAGNET results show that changes in weather are likely to have significant effects on the production, trade, and, in some cases, the consumption of major food crops.

One objective of Computable general equilibrium (CGE) models is the analysis of economywideeffects of policy measures. The focus of the Factor Markets project is to analyse thefunctioning of factor markets for agriculture in the EU-27, including the CandidateCountries. While agricultural and food markets are fully integrated in a European singlemarket, subject to an EU-wide common policy, the Common Agricultural Policy (CAP), this isnot the case for the agricultural factor markets capital, labour and land. There are partlyserious differences with regard to member state regulations and institutions affecting land,labour and capital markets. The presentation of this heterogeneity of factor markets amongstEU Member States have been implemented in the CGE models to improve model-basedanalyses of the CAP and other policy measures affecting agricultural production.This final report comprises the outcome of a systematic extension and improvement of theModular Applied GeNeral Equilibrium Tool (MAGNET) model starting from an overview ofthe current state of the art to represent factor markets in CGE models to a description ofwork on labour, land and capital in MAGNET.

Deliverable D.7.1 Description of a coupled macroeconomic, multi-sector analysis at global scale with first simulation results and D.7.2 Description of the linked modelling system of sector models and multi-sector assessments are now available. These deliverables should be seen and read in together. D.7.1 describes results for 4 marker scenarios from the global models in the topdown analysis in WP7, which provide the boundary conditions for in-depth analysis at the level of EU-27, individual member countries as well as sub-national levels while D7.2 presents selected results from the linked modelling system. The 4 marker scenarios will also provide a starting point for a larger number of policy scenarios to be analyzed in the next steps of the VOLANTE project. The VOLANTE top-down modelling framework has been developed to serve the stakeholder discussions and roadmapping in module Visions by adequate information that can fuel discussions and provide quantitative assessments to support the final roadmapping exercise. Selected scenario results have already been used in 4 visions workshops which have been conducted by Module Visions in June and September 2012.

This paper analyses the consequences of enhanced biofuel production in regions and countries of the world that have announced plans to implement or expand on biofuel policies. The analysis considers biofuel policies implemented as binding blending targets for transportation fuels. The chosen quantitative modelling approach is two-fold: it combines the analysis of biofuel policies in a multi-sectoral economic model (MAGNET) with systematic variation of the functioning of capital and labour markets.This paper adds to existing research by considering biofuel policies in the EU, the US and various other countries with considerable agricultural production and trade, such as Brazil, India and China. Moreover, the application multi-sectoral modelling system with different assumptions on the mobility of factor markets allows for the observation of changes in economic indicators under different conditions of how factor markets work.Systematic variation of factor mobility indicates that the ‘burden’ of global biofuel policies is not equally distributed across different factors within agricultural production. Agricultural land, as the pre-dominant and sector-specific factor, is, regardless of different degrees of inter-sectoral or intra-sectoral factor mobility, the most important factor limiting the expansion of agricultural production. More capital and higher employment in agriculture will ease the pressure on additional land use – but only partly. To expand agricultural production at global scale requires both land and mobile factors adapted to increase total factor productivity in agriculture in the most efficient way.

Estimates for deforestation and forest degradation were shown to account for about 17% of greenhouse gas emissions. The implementation of REDD is suggested to provide substantial emission reductions at low costs. Proper calculation of such a costs requires integrated modeling approach involving biophysical impact calculations and estimation economic effects of these.However, only few global modeling studies concerning this issue exist, and the actual implementation can take many forms. This study uses the approach of assuming that non Annex-I countries protect carbon rich areas from deforestation, and therefore loose the opportunity to use it as agricultural area. The opportunity costs of reducing deforestation within the framework of REDD are assessed with the global economic model LEITAP and the biophysical model IMAGE. A key methodological challenge is the representation of land use and the possibility to convert forestry land into agricultural land as REDD policies might prevent the use of forest for agriculture. We endogenize availability of agricultural land by introducing a flexible land supply curve and proxy the implementation of the REDD policies as a shift in the asymptote of this curve representing maximal agricultural land availability in various regions in the world. In a series of experiments, increasingly more carbon rich areas are protected from deforestation, the associated costs in terms of GDP reduction are calculated with the economic model. The associated reduction in CO2 emissions from land use change are calculated by the IMAGE model. From this series of experiments, abatement cost curves, relating CO2 emission reduction to costs of this reduction, are constructed. The results show that globally a maximum CO2 reduction of around 2.5 Gt could be achieved. However, regional differences are large, ranging from about 0 to 3.2 USD per ton CO2 in Africa, 2 to 9 USD in South and Central America, and 20 to 60 USD in Southeast Asia

This paper analyses the complex battle between RED and REDD policies and the resulting global consequences on land use, agricultural production, international trade flows and world food prices. A key methodological challenge is the representation of land use and the possibility to convert forestry land into agricultural land as REDD policies might prevent the use of forestry and wood lands for agriculture. The paper introduces a flexible land supply function allowing large changes in the total potential land availability for agriculture due to environmental considerations such as reducing emissions from deforestation. The parameters of the new land supply function are defined as variables of the model. In the paper, we simplify the implementation of the REDD policies as a shift in potential availability for agricultural land in various regions in the world. Both analysed policies are designed to save emissions but their land use impacts are opposite. The paper shows that global RED policies expand global land use with 3% relative to the baseline. Land abundant countries such as Canada, USA and Indonesia extend their use of agricultural land and their agricultural production. Severe REDD policies that protect all forest and woodlands in especially tropical land abundant regions such as Central and South America, South Africa and Indonesia imply a global reduction of agricultural land by 5% and lead to higher food and land prices. REDD policies reverse production and trade patterns as previous land abundant countries become land scarce countries.

Deliverable D.7.1 Description of a coupled macroeconomic, multi-sector analysis at global scale with first simulation results and D.7.2 Description of the linked modelling system of sector models and multi-sector assessments are now available. These deliverables should be seen and read in together. D.7.1 describes results for 4 marker scenarios from the global models in the topdown analysis in WP7, which provide the boundary conditions for in-depth analysis at the level of EU-27, individual member countries as well as sub-national levels while D7.2 presents selected results from the linked modelling system. The 4 marker scenarios will also provide a starting point for a larger number of policy scenarios to be analyzed in the next steps of the VOLANTE project. The VOLANTE top-down modelling framework has been developed to serve the stakeholder discussions and roadmapping in module Visions by adequate information that can fuel discussions and provide quantitative assessments to support the final roadmapping exercise. Selected scenario results have already been used in 4 visions workshops which have been conducted by Module Visions in June and September 2012.

Following the paradigm for reforming the current CAP, the first objective of this study is to give insights into the economic impact of post-2013 CAP measures at different levels of aggregation (e.g. EU, Member State and region). The post-2013 CAP measures included are directed towards income for the farmers, competitiveness, valuable areas and ecosystem services. The second objective is to analyse the impact of a scenario that combines the above mentioned post-2013 CAP measures. This study can be seen as a first attempt to quantify the transition to a CAP with more targeted measures at the European level and reveals considerable methodological and data challenges. A key finding is that the impact of the various measures is very different with regard to various economic indicators.

The paper investigates the CAP impacts on the EU agriculture by means of policy simulations conducted with the AGMEMOD model. To isolate the policy effects in the historical period 2000-2005, counterfactual simulations for this period are run. To simulate the response of the EU agriculture on different policy changes in the period 2006-2020, a ‘no-policy change’ baseline scenario is developed and then policy experiments are conducted such as the abolition of milk quota, the implementation of the regional payments and some budget cuts. To identify the policy effects, the policy scenarios are compared with the ‘no-policy change’ baseline.

This paper presents the possible development scenario of the Polish agricultural sector till 2020. It also assesses the impact of macroeconomic growth, CAP reforms and worldwide policies towards the agriculture on this development. The scenario is build using an extended version of the Global Trade Analysis Project model GTAP which is a computable general equilibrium model of the world economy. The analysis shows that the growth of Polish agri-food sector observed after accession to the European Union will be prolonged in the future and will lead to an increase of agri- food sector incomes. However, it is expected that the positive trade balance in agri-food products will decrease significantly in consequence of the world trade liberalization and the EU policy stimulating biofuels production.