The OECD Trade and Environment Working Paper series is designed to make available to a wide readership selected studies by OECD staff or by outside consultants. The views expressed are those of the authors and do not necessarily reflect the official views of the OECD or of the governments of its member countries or those of the European Union. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries, and to the name of any territory, city or area.

No abstract

No abstract

No abstract

The OECD Trade and Environment Working Paper series is designed to make available to a wide readership selected studies by OECD staff or by outside consultants. The views expressed are those of the authors and do not necessarily reflect the official views of the OECD or of the governments of its member countries or those of the European Union. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries, and to the name of any territory, city or area.

This paper is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and the arguments employed herein do not necessarily reflect the official views of OECD countries. The publication of this document has been authorised by Ken Ash, Director of the Trade and Agriculture Directorate. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.

Summary By 2050, the global demand for land and water for agricultural use is projected to increase. Climate change is likely to affect agricultural production through increased temperatures as well as through altered precipitation patterns, which are likely to increase water deficiency in many regions. Measures seeking to increase water efficiency and resilience of the agricultural sector to climate change will therefore be critical. The benefits of more efficient irrigation systems are especially apparent in regions already suffering from water shortages, such as the Mediterranean Basin, or those that are likely to suffer in the future, such as the Southern Cone of South America. However, unless incentives for saving water are in place, farmers may decide to expand their area of irrigated land, or to switch to water‐intensive, higher‐value commodities. Extending irrigation generally constitutes mixed blessings. In regions experiencing water deficits, extending irrigation may lead to greater water stress on irrigated agriculture. Meanwhile, when applied globally and governed carefully, efficient irrigation techniques and extending irrigation can yield overall increases in agricultural production that can reduce agricultural commodity prices. Stimulating water‐efficient irrigation systems may thus prove crucial in improving farmers' resilience over time, though such measures should be supported by other economic instruments such as water pricing or water trading, where necessary.

No abstract