Economic effects of CO_{2} fertilization of crops: transforming changes in yield into changes in supply

Increasing concentrations of atmospheric carbon dioxide (CO_{2}) have a beneficial effect on crop production that would tend to offset some of the economic losses that might be generated in some areas by the climatic effects of atmospheric CO_{2} and other greenhouse gases. Previous estimates of the...

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Bibliographic Details
Published in:Environmental modeling & assessment 2000-01, Vol.5 (3), p.157-168
Main Authors: Darwin, Roy, Kennedy, Darren
Format: Article
Language:English
Subjects:
Agricultural economics
Agricultural production
Carbon dioxide
Climate change
Climate effects
Crop production
Crops
Economic impact
Economic models
Economics
Environmental conditions
Estimates
Greenhouse effect
Greenhouse gases
Photosynthesis
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Summary:Increasing concentrations of atmospheric carbon dioxide (CO_{2}) have a beneficial effect on crop production that would tend to offset some of the economic losses that might be generated in some areas by the climatic effects of atmospheric CO_{2} and other greenhouse gases. Previous estimates of the economic benefits of CO_{2} fertilization on world crop production, however, were based on the assumption that percent changes in supply are equal to percent changes in yield. This assumption is not valid, however, because it confounds changes in supply with changes in quantity supplied. This error leads to an overestimation of the real economic benefits of CO_{2} fertilization by 61 - 166%. The effects of CO_{2} fertilization on crop production, therefore, will reduce some of the potential damages caused by the climatic impacts of greenhouse gases, but by significantly less than that indicated in earlier research. [PUBLICATION ABSTRACT]
ISSN:1420-2026
1573-2967