An assessment of the economic and social impacts of climate change on the agriculture sector in the Caribbean

The main objective of the present study was to determine the value of impacts due to climate change on the agricultural sector in the Caribbean under the Intergovernmental Panel on Climate Change Special Report on Emissions Scenarios A2 and B2 scenarios. More specifically, the study aimed to evaluate the direction and magnitude of the potential impacts of climate change on aggregate agricultural output and other key agricultural indicators. Further, the study forecast changes in income for agricultural output for key subsectors under the A2 and B2 scenarios, from 2011 to 2050. It analysed the benefits and costs of the key adaptation strategies identified by Caribbean Governments.

An assessment of the economic impact of climate change on the water sector in Saint Vincent and The Grenadines

Water security which is essential to life and livelihood, health and sanitation, is determined not only by the water resource, but also by the quality of water, the ability to store surplus from precipitation and runoff, as well as access to and affordability of supply. All of these measures have financial implications for national budgets. The water sector in the context of the assessment and discussion on the impact of climate change in this paper includes consideration of the existing as well as the projected available water resource and the demand in terms of: quantity and quality of surface and ground water, water supply infrastructure - collection, storage, treatment, distribution, and potential for adaptation. Wastewater management infrastructure is also considered a component of the water sector. Saint Vincent and the Grenadines has two distinct hydrological regimes: mainland St Vincent is one of the wetter islands of the eastern Caribbean whereas the Grenadines have a drier climate than St Vincent. Surface water is the primary source of water supply on St Vincent, whereas the Grenadines depend on man-made catchments, rainwater harvesting, wells, and desalination. The island state is considered already water stressed as marked seasonality in rainfall, inadequate supply infrastructure, and institutional capacity constrains water supply. Economic modelling approaches were implemented to estimate sectoral demand and supply between 2011 and 2050. Residential, tourism and domestic demand were analysed for the A2, B2 and BAU scenarios. In each of the three scenarios – A2, B2 and BAU Saint Vincent and the Grenadines will have a water gap represented by the difference between the two curves during the forecast period of 2011 and 2050. The amount of water required increases steadily between 2011 and 2050 implying an increasing demand on the country‘s resources as reflected by the fact that the water supply that is available cannot respond adequately to the demand. The Global Water Partnership in its 2005 policy brief suggested that the best way for countries to build the capacity to adapt to climate change will be to improve their ability to cope with today‘s climate variability (GWP, 2005). This suggestion is most applicable for St Vincent and the Grenadines, as the variability being experienced has already placed the island nation under water stress. Strategic priorities should therefore be adopted to increase water production, increase efficiency, strengthen the institutional framework, and decrease wastage. Cost benefit analysis was stymied by data availability, but the ―no-regrets approach‖ which intimates that adaptation measures will be beneficial to the land, people and economy of Saint Vincent and the Grenadines with or without climate change should be adopted.

An assessment of the economic impact of climate change on the Agriculture Sector in Jamaica

The agricultural sector‟s contribution to GDP and to exports in Jamaica has been declining with the post-war development process that has led to the differentiation of the economy. In 2010, the sector contributed 5.8% of GDP, and 3% to the exports (of goods), but with 36% of employment, it continues to be a major employer. With a little less than half of the population living in rural communities, agricultural activities, and their linkages with other economic activities, continue to play an important role as a source of livelihoods, and by extension, the economic development of the country. Sugar cane cultivation has, with the exception of a couple of decades in the twentieth century when it was superseded by bananas, dominated the agricultural export sector for centuries as the source of the raw materials for the manufacture of sugar for export. In 2005, sugar cane itself accounted for 6.4% of the sector‟s contribution to GDP, and 52% of the contribution of agricultural exports to GDP. Production for the domestic market has long been the larger subsector, organized around the production of root crops, especially yams, vegetables and condiments. To analyse the potential impact of climate change on the agricultural sector, this study selected three important crops for detailed examination. In particular, the study selected sugar cane because of its overwhelming importance to the export subsector of agriculture, and yam and escallion for both their contribution to the domestic subsector as well as the preeminent role yams and escallion play in the economic activities of the communities in the hills of central Jamaica, and the plains of the southwest respectively. As with other studies in this project, the methodology adopted was to compare the estimated values of output on the SRES A2 and B2 Scenarios with the value of output on a “baseline” Business As Usual (BAU), and then estimate the net benefits of investment in the relevant to climate change for the selected crops. The A2 and B2 Scenarios were constructed by applying forecasts of changes in temperature and precipitation generated by INSMET from ECHAM inspired climate models. The BAU “baseline” was a linear projection of the historical trends of yields for each crop. Linear models of yields were estimated for each crop with particular attention to the influence of the two climate variables – temperature and precipitation. These models were then used to forecast yields up to 2050 (table1). These yields were then used to estimate the value of output of the selected crop, as well as the contribution to overall GDP, on each Scenario. The analysis suggested replanting sugar cane with heat resistant varieties, rehabilitating irrigation systems where they existed, and establishing technologically appropriate irrigation systems where they were not for the three selected crops.

An assessment of the economic impact of climate change on the tourism sector in Aruba

In this study, an attempt is made to assess the economic impact of climate change on Aruba. This study has three main objectives. The first is to examine the factors that influence the demand and supply of tourism in Aruba. The second is to forecast the cost of climate change to the tourism sector until 2050 under the A2 and B2 climate scenarios with the Business as Usual (BAU) as a comparator climate scenario, and the third is to estimate the cost of adaptation and mitigation strategies that can be undertaken by Aruba to address climate change in the tourism sector.

An assessment of the economic impact of climate change on the tourism sector in Curacao

In this study, an attempt is made to estimate the economic impact of climate change on the tourism sector in the (former) Netherlands Antilles. There are three main objectives in this study. The first is to examine the factors that influence the demand and supply of tourism in Netherlands Antilles. The second is to forecast the cost of climate change to the tourism sector until 2050 under the A2 and B2 climate scenarios with the (Business as Usual) as a comparator climate scenario, and the third is to estimate the cost of adaptation and mitigation strategies that can be undertaken by the tourism sector in the Netherlands Antilles to address climate change.