@article{Boere:312578,
      recid = {312578},
      author = {Boere, Esther},
      title = {Assessing Market Stability under Climate-Induced  Production Shocks: Agricultural Trade and Storage as  Adaptation Mechanisms},
      address = {2019-06},
      number = {2412-2021-2146},
      year = {2019},
      abstract = {Climate change and extreme weather events lead to  short‐term variability and shocks to agricultural supply,  impacting the entire food system and posing threats to food  security. Furthermore, instability in the food system may  disturb other systems such as energy and water. Studies  into the interdependent demand and supply relationships in  these systems require a framework that can take stock of  both the climate‐induced deviations between expected and  observed prices and yields, the impacts on the food  commodity market, as well as different adaptation  mechanisms that may serve as market stabilization policies,  such as storage and different trade‐liberalization  mechanisms. This study develops a non‐stationary model for  market stabilization policy design, called GLOBIOM‐X.  GLOBIOM-X aims to analyze the impact of climate‐induced  yield shocks on market stability and how market instability  can be contained through the adaptation mechanisms of  stockholding and trade liberalization. The model is based  on the bio‐economic land use model GLOBIOM. GLOBIOM‐X runs  in annual time steps and can address agricultural land use  from the producers’ perspective based on expected prices.  Stockholding is incorporated in the model by allowing  producers to temporarily stock their products and consumers  to take‐up products from storage facilities. For the  assessment of the effectiveness of trade policies and  stockholding options in reducing price spikes and improving  food availability, shortfalls in production based on  realistic weather events have been quantified. Three types  of storage scenarios; baseline‐level storage, unlimited  storage and storage including intervention prices and a  trade reduction and complete trade liberalization scenario  are implemented in order to assess their impact on market  stability. Results are assessed in terms of their  environmental impacts, equality and profitability. Thereby,  this paper helps to give insight to what extent different  types of policy measures reduce the negative impacts that  yield shocks due to extreme events have on the environment,  equitability amongst consumer systems and competitiveness.  Both storage and trade liberalization help reduce the  increase in greenhouse gas emissions, storage facilities  may lead to a more equitable food system on the consumer  side, whereas trade liberalization leads to more  competitiveness in the EU agri-food business.},
      url = {http://ageconsearch.umn.edu/record/312578},
      doi = {https://doi.org/10.22004/ag.econ.312578},
}