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Abstract Labor markets can shape the impacts of global market developments and local sustainability policies on agricultural outcomes, including changes in production and land use. Yet local labor market outcomes, including agricultural employment, migration and wages, are often overlooked in integrated assessment models (IAMs). The relevance of labor markets has become more important in recent decades, with evidence of diminished labor mobility in the United States (US) and other developed countries. We use the SIMPLE-G (Simplified International Model of agricultural Prices, Land use, and the Environment) modeling framework to investigate the impacts of a global commodity price shock and a local sustainable groundwater use policy in the US. SIMPLE-G is a multi-scale framework designed to allow for integration of economic and biophysical determinants of sustainability, using fine-scale geospatial data and parameters. We use this framework to compare the impacts of the two sets of shocks under two contrasting assumptions: perfect mobility of agricultural labor, as generally implicit in global IAMs, and relatively inelastic labor mobility (‘sticky’ agricultural labor supply response). We supplement the numerical simulations with analytical results from a stylized two-input model to provide further insights into the impacts of local and global shocks on agricultural labor, crop production and resource use. Findings illustrate the key role that labor mobility plays in shaping both local and global agricultural and environmental outcomes. In the perfect labor mobility scenario, the impact of a commodity price boom on crop production, employment and land-use is overestimated compared with the restricted labor mobility case. In the case of the groundwater sustainability policy, the perfect labor mobility scenario overestimates the reduction in crop production and employment in directly targeted grids as well as spillover effects that increase employment in other grids. For both shocks, impacts on agricultural wages are completely overlooked if we ignore rigidities in agricultural labor markets.
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Global drivers of local water stresses and global responses to local water policies in the United States
Abstract The rapid depletion of US groundwater resources and rising number of dying wells in the Western US brings attention to the significance of groundwater governance and sustainability restrictions. However, such restrictions on groundwater withdrawals are likely to generate spillover effects causing further environmental stresses in other locations and adding to the complexity of sustainability challenges. The goal of this paper is to improve our understanding of the implications of growing global food demand for local sustainability stresses and the implications of local sustainability policies for local, regional, and global food production, land use, and prices. We employ SIMPLE-G-US (Simplified International Model of agricultural Prices, Land use, and the Environment—Gridded version for the United States) to distangle the significance or remote changes in population and income for irrigation and water resources in the US. Then we examine the local-to-global impacts of potential US groundwater sustainability policies. We find that developments in international markets are significant, as more than half of US sustainability stresses by 2050 are caused by increased commodity demand from abroad. Furthermore, a US sustainable groundwater policy can cause overseas spillovers of US production, thereby potentially contributing to environmental stresses elsewhere, even as groundwater stress in the US is alleviated. These unintended consequences could include deforestation due to cropland expansion, as well as degradation in water quality due to intensification of production in non-targeted areas.
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- PAR ID:
- 10414550
- Publisher / Repository:
- IOP Publishing
- Date Published:
- Journal Name:
- Environmental Research Letters
- Volume:
- 18
- Issue:
- 6
- ISSN:
- 1748-9326
- Page Range / eLocation ID:
- Article No. 065007
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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