Adaptation, spatial heterogeneity, and the vulnerability of agricultural systems to climate change and CO2 fertilization:: An integrated assessment approach

In this paper we develop economic measures of vulnerability to climate change with and without adaptation in agricultural production systems. We implement these measures using coupled, site-specific ecosystem and economic simulation models. This modeling approach has two key features needed to study the response of agricultural production systems to climate change: it represents adaptation as an endogenous, non-marginal economic response to climate change; and it provides the capability to represent the spatial variability in bio-physical and economic conditions that interact with adaptive responses. We apply this approach to the dryland grain production systems of the Northern Plains region of the United States. The results support the hypothesis that the most adverse impacts on net returns distributions tend to occur in the areas with the poorest resource endowments and when mitigating effects of CO2 fertilization and adaptation are absent. We find that relative and absolute measures of vulnerability depend on complex interactions between climate change, CO2 level, adaptation, and economic conditions such as relative output prices. The relationship between relative vulnerability and resource endowments varies with assumptions about climate change, adaptation, and economic conditions. Vulnerability measured with respect to an absolute threshold is inversely related to resource endowments in all cases investigated.