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1

Ana Iglesias, Universidad Politécnica de Madrid

La economía de agua de riego

24 Septiembre 2008

(2)

PESETA (JRC)

Adaptation (DG Agri)

PICCMAT (6th FP)

CIRCE (6th FP)

SWAP (6th FP)

ClimateCost (7th FP)

(3)

3

• For the last 10,000 years we have been living in

a remarkable stable climate that allowed the

whole of the human development to take place

• In all that time, though the medieval warming

and the Little Ice Age, there was only a variation

of 1ºC

• Now we see the potential for sudden change of

between 2 and 6ºC –

We just don’t know what

the world is like at those temperatures

, we

have no idea if we can live in it

(4)

Production in a changing climate

Objective: discussion

1. Critical thinking: What does climate change

mean for production?

Complex outlook, multiple dimensions

Challenges and opportunities

2. Solutions: What is the best future we can

hope for?

(5)

5

Climate

impacts

Climate

dynamics

Societal

dynamics

f

Rethinking climate impacts

(6)

Climate dynamics

(7)

7

(8)

Annual Streamflow in Bolarque and SPI

0

500

1000

1500

2000

2500

3000

3500

1

9

1

1

/1

2

1

9

1

9

/2

0

1

9

2

7

/2

8

1

9

3

5

/3

6

1

9

4

3

/4

4

1

9

5

1

/5

2

1

9

5

9

/6

0

1

9

6

7

/6

8

1

9

7

5

/7

6

1

9

8

3

/8

4

1

9

9

1

/9

2

1

9

9

9

/0

0

H

m

3

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

SPI

(2

4

m

o

n

th

s

)

Ann Inflow

SPI (24)

Lineal (Ann Inflow)

(9)

9

Changes in water supply and demand with climate change

-15

-10

-5

0

5

10

15

1 2 3 4 5 6 7 8 9 10

%

c

ha

ng

e

f

rom

ba

s

e

li

ne

Irrigation demand

Rservoir water inflow

Available water resources

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

# 1. Scenarios:

Water supply and demand

# # # # # 9 11 12 8 7 6 5 4 3 2 10 1 Bilbao Barcelona Valencia Madrid Sevilla Medi terra nean Sea France Portuga l Atlantic Oce an 1 2 3 4 5 6 7 8 9 10 11 12 # # # # # 9 11 12 8 7 6 5 4 3 2 10 1 Bilbao Barcelona Valencia Madrid Sevilla Medi terra nean Sea France Portuga l Atlantic Oce an 1 2 3 4 5 6 7 8 9 10 11 12

(10)

Climate

impacts

Climate

dynamics

Societal

dynamics

f

Rethinking climate impacts

(11)

11

Agricultural exports and imports (2006)

0

100

200

300

400

500

600

700

800

900

1,000

EU

USA

China

RoW

M

ill

io

n

t

Exports

Imports

(12)
(13)

13

(14)

Climate

impacts

Climate

dynamics

Societal

dynamics

f

Rethinking climate impacts

Source: CIRCE

Challenges

and

(15)

15

Challenges and opportunities

Regional disparities

Crop yield changes under the HadCM3/HIRHAM A2 and B2 scenarios for the 2080s and for the ECHAM4/ RCA3 A2 and B2 scenarios for the 2080s and ECHAM4/ RCA3 A2 scenario for the 2020s compared to baseline

(16)

Boreal

Expansion of areas and growing season

Expansion of weeds, pests, diseases

(17)

17

Atlantic N

Atlantic C

Sea level rise

Floods,

water-logging

Summer drought

Environmental

policy

(18)

# 3. Useful knowledge

The role of the human capital, Gary Becker (Nobel Price, 1992)

(19)

19

Bordeaux red: Cabernet Sauvignon, Cabernet franc, Merlot, Petit Verdot, Carménère, Malbec

Atlantic S

Decline of

high quality

crops

Regulations

may limit

(20)
(21)

Ana Iglesias - Ecoagua, Zaragoza 24 Septiembre 2008

21

Continental N

Continental S

Heat stress and drought in

summer

(e.g., 2007)

Floods, water-logging

Environmental degradation

(22)

# 4. Flexible risk management

(23)

Ana Iglesias - Ecoagua, Zaragoza 24 Septiembre 2008

23

Alpine

Glacier melt

Modification of the hydrological

regime with large implications

for soil erosion, water

availability, etc

(24)

Med N

Med S

Water scarcity and drought

Conflicts among water

users

Vulnerability of the complex

interactions of

agriculture-ecosystems

(25)

25

The Stern Review of the Economics of

Climate Change (Stern et al, 2006)

• Argues that “the overall costs and risks of

climate change will be

equivalent to losing at

least 5% of global GDP1 each year

Challenged

by many economists with large

working experience in climate change (Tol,

2007). Ignores and contradicts numerous

(26)

Change value of GDP 2080s (agriculture shock)

-0.15

-0.10

-0.05

0.00

0.05

0.10

0.15

Rest of EU

Med North

Med South

ROW

%

c

hange

HadCM3 A2

HadCM3 B2

ECHAM A2

ECHAM B2

(27)

27

Production in a changing climate

Objective: discussion

1. Critical thinking: What does climate change

mean for production?

Complex outlook, multiple dimensions

Challenges and opportunities

2. Solutions: What is the best future we can

hope for?

(28)

Climate

impacts

Climate

dynamics

Societal

dynamics

f

Rethinking climate impacts

(29)

29

• Kyoto protocol

• Lisbon strategy

• SD strategy

EU White Paper on Adaptation

• CAP – WFD – Nitrates D – Energy D

• Local initiatives (early stages,

dissemination, awareness building)

(30)

Building

adaptive

capacity

Awareness raising

Research (spatial and time

dimension)

Knowledge transfer

Risk management

(31)

31

Building

adaptive

capacity

Delivering

adaptation

actions

Supported by policy

Strategic combination of

the CC commitments of

various policies

Technology, infrastructure

Changes in land use

(32)

Role of

RD (CAP)

A flexible

framework

Axis 1

Farm modernization

Restoring & prevention

Farm advisory services

Training

Axis 2

Agri-env measures

Payments linked to WFD

Axis 3

Diversification into

non-agricultural activities

(33)

33

Natural

resources

dimension

Social

dimension

Technological

dimension

Economic

dimension

Climate

policy index

Vulnerability

Climate change

Impacts

# 5.

Understanding

how may

policy modify

climate risks

Define strategic

combination of the

climate change

commitments in the

various policies

(34)

• Values range from 0

to 1

• High values indicate

that current policies

decrease potential

impacts (the system

has increased

(35)

35

Climate impacts on agriculture

with different policies

HadCM3/HIRHAM B2 scenario for the period 2071-2100

(% yield change respect to baseline)

Agric output

Adaptation

Policy

Env (1)

Adaptation

Farm (2)

Adaptation

Policy

Econ /Rural Dev (3)

Mediterranean

Europe

-50 to -25

1

0 to 20

(1) Adaptation with emphasis on water resources protection

and urban development

(2) Farm adaptation without policy support (private)

(36)
(37)

37

Thinking more about …

1. Climate scenarios are not enough

2. Understanding of local vulnerabilities

3. Useful knowledge (involving practitioners,

industry)

4. Moving towards a flexible, risk management

5. Understanding how policy modifies climate

risks and opportunities

Learning how to respond in the long term

(38)

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