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Yield & Climate
Variability:
Learning from
Time Series & GCM

 Presented by:

        Amer Ahmed, World Bank




                                                             www.agrodep.org
   AGRODEP Workshop on Analytical Tools for Climate
   Change Analysis

   June 6-7, 2011 • Dakar, Senegal
  Please check the latest version of this presentation on:
     http://agrodep.cgxchange.org/first-annual-workshop
Yield & Climate Variability:
Learning from Time Series & GCM

             Amer Ahmed
                World Bank
               June 7, 2011

    AGRODEP Members’ Meeting and Workshop
               Dakar, Senegal
Outline
• Statistical models of crop response & climate
  – Focus on time series and panel data approaches
  – Ricardian approach of Mendelsohn et al. not
    covered
• Illustrations & insights from recent research
  – Long run forecasts
  – Volatilities and extremes
• Implications of methodology

                                                     2
General:
    Statistical Modeling Literature
• Strengths:
   – Abstracts away from biophysical processes
   – Statistical measures of accuracy (e.g. model fit)
   – Does not need calibration
• International time series production/yield data
• Several publications in recent years (e.g. Lobell et al.,
  2008, 2011 in Science)
   – Generally negative impacts in LDCs, and tropics
   – Temperature often more important than precipitation


                                                              3
Climate and CO2 Changes



                        Agricultural productivity


                   Average Global Yields vs. Temperatures, 1961-2002
Yield Change (%)




                            Temperature Change (ºC)



                                                                                      4
                                                                       Lobell and Field (2007)
Africa : Schlenker-Lobell (2010, ERL)
• Data:
   – for estimation: 1961-2002 data from FAO, National
     Centers of Environmental Prediction, CRU;
   – for prediction: climate data from 16 GCMs (2046–2065)
• Model

   – Four specifications: Average weather; Quadratic in
     average weather; Degree days; Degree day categories
• Predicted impacts distribution


                                                             5
In all cases,
   except cassava
   – 95%
     probability
     that damages
     > 7%
   – 5% probability
     that damages
     > 27%




               6
Changing Climate Volatility
• Extreme outcomes may be particularly
  important for agriculture (White et al, 2006;
  Mendelsohn et al, 2007)
• Climate volatility is already changing
  (Easterling et al, 2000)
  – Higher temperature and precipitation extremes in
    the future (IPCC, 2007)




                                                       7
US Maize Yield Response to Temperature




                                                   8
                              Schlenker and Roberts (2008)
9
Ahmed et al. (2009)
Illustration: Sensitivity of Tanzanian Grain
             to Climate Volatility
• Ahmed, Diffenbaugh, Hertel, Lobell, Ramankutty,
  Rios, & Rowhani (GEC, 2011)
• Econometric estimation to explain interannual
  change in yields using panel data from 17
  administrative regions: 1992-2005
   – Maize, rice, and sorghum yields (tonnes/ha)
   – Temperature (growing season mean in degrees C)
   – Precipitation (growing season mean in mm/month)
• Use yield equation to translate historical and future
  climate into output changes
                                                          10
11
Distribution of Interannual % Changes in
             Tanzanian Grains Yield due to Climate




Mass of distribution
shifting left                                                          median yield change
(more/larger outcomes
with % decline in yield
from previous year)




                 Outcomes within box represent 75% of all predicted outcomes
                                                                                          12
                                                                               Ahmed et al. (2011)
Take Homes
• Panel data approach can be powerful tool
  – Temperature more important than precipitation
• African staples yields likely to decline
• Climate change includes change in volatility
  – Extreme outcomes can be more important than
    mean changes
• Need to account for heterogeneity &
  uncertainty due to GCMs
  – Bounded envelopes
  – Bias-correction
                                                    13

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Yield & Climate Variability: Learning from Time Series & GCM

  • 1. Yield & Climate Variability: Learning from Time Series & GCM Presented by: Amer Ahmed, World Bank www.agrodep.org AGRODEP Workshop on Analytical Tools for Climate Change Analysis June 6-7, 2011 • Dakar, Senegal Please check the latest version of this presentation on: http://agrodep.cgxchange.org/first-annual-workshop
  • 2. Yield & Climate Variability: Learning from Time Series & GCM Amer Ahmed World Bank June 7, 2011 AGRODEP Members’ Meeting and Workshop Dakar, Senegal
  • 3. Outline • Statistical models of crop response & climate – Focus on time series and panel data approaches – Ricardian approach of Mendelsohn et al. not covered • Illustrations & insights from recent research – Long run forecasts – Volatilities and extremes • Implications of methodology 2
  • 4. General: Statistical Modeling Literature • Strengths: – Abstracts away from biophysical processes – Statistical measures of accuracy (e.g. model fit) – Does not need calibration • International time series production/yield data • Several publications in recent years (e.g. Lobell et al., 2008, 2011 in Science) – Generally negative impacts in LDCs, and tropics – Temperature often more important than precipitation 3
  • 5. Climate and CO2 Changes Agricultural productivity Average Global Yields vs. Temperatures, 1961-2002 Yield Change (%) Temperature Change (ºC) 4 Lobell and Field (2007)
  • 6. Africa : Schlenker-Lobell (2010, ERL) • Data: – for estimation: 1961-2002 data from FAO, National Centers of Environmental Prediction, CRU; – for prediction: climate data from 16 GCMs (2046–2065) • Model – Four specifications: Average weather; Quadratic in average weather; Degree days; Degree day categories • Predicted impacts distribution 5
  • 7. In all cases, except cassava – 95% probability that damages > 7% – 5% probability that damages > 27% 6
  • 8. Changing Climate Volatility • Extreme outcomes may be particularly important for agriculture (White et al, 2006; Mendelsohn et al, 2007) • Climate volatility is already changing (Easterling et al, 2000) – Higher temperature and precipitation extremes in the future (IPCC, 2007) 7
  • 9. US Maize Yield Response to Temperature 8 Schlenker and Roberts (2008)
  • 10. 9 Ahmed et al. (2009)
  • 11. Illustration: Sensitivity of Tanzanian Grain to Climate Volatility • Ahmed, Diffenbaugh, Hertel, Lobell, Ramankutty, Rios, & Rowhani (GEC, 2011) • Econometric estimation to explain interannual change in yields using panel data from 17 administrative regions: 1992-2005 – Maize, rice, and sorghum yields (tonnes/ha) – Temperature (growing season mean in degrees C) – Precipitation (growing season mean in mm/month) • Use yield equation to translate historical and future climate into output changes 10
  • 12. 11
  • 13. Distribution of Interannual % Changes in Tanzanian Grains Yield due to Climate Mass of distribution shifting left median yield change (more/larger outcomes with % decline in yield from previous year) Outcomes within box represent 75% of all predicted outcomes 12 Ahmed et al. (2011)
  • 14. Take Homes • Panel data approach can be powerful tool – Temperature more important than precipitation • African staples yields likely to decline • Climate change includes change in volatility – Extreme outcomes can be more important than mean changes • Need to account for heterogeneity & uncertainty due to GCMs – Bounded envelopes – Bias-correction 13