RESUMEN
Researchers explore future economic and climate scenarios using global economic and integrated assessment models to understand long-term interactions between human development and global environmental changes. However, differences in trade modeling approaches are an important source of uncertainty in these types of assessments, particularly for regional projections. In this study, we modified the Global Change Analysis Model (GCAM) to include a novel logit-based Armington trade structure, to examine two approaches to modeling trade: (1) an approach that represents segmented regional markets (SRM), and (2) an approach that represents integrated world markets (IWM). Our results demonstrate that assuming IWM, i.e., homogeneous product modeling and neglecting economic geography, could lead to lower cropland use (i.e., by 115 million hectares globally) and terrestrial carbon fluxes (i.e., by 25%) by the end of the century under the default GCAM scenario, compared with the logit-based Armington SRM structure. The results are highly heterogeneous across regions, with more pronounced regional trade responses driven by global market integration. Our study highlights the critical role that assumptions about future trade paradigms play in global economic and integrated assessment modeling. The results imply that closer harmonization of trade modeling approaches and trade parameter values could increase the convergence of regional results among models in model intercomparison studies.
RESUMEN
Comprehensive study of the environmental impacts associated with demand for an energy resource or carrier in any one sector requires a full consideration of the direct and indirect impacts on the rest of the regional and global energy system. Biofuels are especially complex since they have feedbacks to both the energy system and to regional and global crop markets. In this study, we present a strategy for dynamically including the upstream energy and transportation links to the Global Change Analysis Model. We incorporate the following inter-sectoral linkages: energy inputs to crop production, energy inputs to fossil resource production, and freight transport requirements of energy and agricultural commodities. We assess the implications of explicitly including these links by measuring the global impacts of increased corn ethanol demand in the United States with and without these links included. Although the net global impact of the upstream links on energy and emissions are relatively modest in the scenarios analyzed, the inclusion of these links illustrates interesting trade-offs in energy and transportation demand among fossil fuel and agriculture sectors. We find that the increment in agricultural energy driven by the additional biofuel production associated with the corn ethanol shock is higher than the decrease of energy associated with the displaced fossil fuel consumption. However, this effect is compensated by the reduction in freight transportation requirements of energy. These sectoral interactions suggest that this level of modeling detail could be important in evaluating future analytical questions.
