REDD policy impacts on the agri-food sector and food security
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The REDD policy which preserves, enables substantial emission reductions. Since agricultural production and area expansion is a primary driver of tropical deforestation, REDD policies might limit the expansion possibilities of agricultural land use and therefore influence competitiveness, agricultural prices, trade, production and food security the world. This paper studies the impact of REDD policies on the agri-food sector and food security with a global CGE model called MAGNET. It focuses on the restrictions on agricultural land expansion within the REDD policy package. Simulation results show that REDD policies start to affect the agri-food sector in some lower developed countries if more than 15% of potentially available agricultural areas are protected from deforestation. A stringent REDD policy that protects 90% of land reserves that could potentially be used for agriculture production results in a global real agricultural price increase of almost 6%, and a worldwide agricultural production decrease of 1.5%.