Population projection, climate change and economic effects: assessment based on agricultural economic blocks

Abstract

The future population trajectory, as well as climate change, are aspects that generate uncertainties as to their probable effects on the economy, especially on agricultural production and food industry. This paper simulates the effects of population scenarios and one of climate change using the GTAP computable general equilibrium model. A version of GTAP 10 was created to identify Agriculture, Forestry and Food Industry activities, and eight regions, called Agricultural Economic Blocks, using multivariate analysis techniques. The dynamic simulations of the accumulated deviation between thebaseline and the policy scenarios up to 2050 in isolation indicated widespread negative effects of climate change on the GDP and economic activities of the blocs. The results of the population scenarios indicated that the blocks made up of richer countries and with more diversified economies would tend to win at the expense of the others in terms of GDP. On the other hand, they would generally encourage the blocks’ Agriculture, Forestry and Food Industry productions. Taken together, the negative effects of climate change would tend to outweigh the positive effects of population scenarios and more intensively on those which project less population growth.

Key words
Population projection; Climate change; Agricultural economic blocks; Economic effects