Role of market agents in mitigating the climate change effects on food economy

Agriculture’s ability to adapt to the impacts of climate change is critical for agricultural households as well as the general public and policymakers. Economic agents can play a vital role in adapting to climate disasters. We use a global computable general economic model (GTAP) to assess the role of the domestic market and international trade in mitigating agriculure production losses due to climate change, taking barley as an example. Our results suggest that under the worst-case scenario of extreme events, the domestic and international market imperfections would cause the losses in domestic supply for barley importers to increase by 3.5% and 0.6%, respectively. We conclude that policies aimed at integrating the markets can also effectively act as adaptation measures for climate change.