Successfully reported this slideshow.
Your SlideShare is downloading. ×

AlexSorto-Econ560-FinalCoursePaper.docx

Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
1
Alex Sorto Econ 560: Advanced International Economics Course Paper April 26,
2022
EU and US Cooperation to Construct Gre...
2
Table of Contents
Goal.....................................................................................................
3
Goal
With a growing population of 10 billion individuals by 2050, more food is needed to
meet this demand and feed all t...
Advertisement
Advertisement
Advertisement
Advertisement

Check these out next

1 of 21 Ad

More Related Content

Advertisement

AlexSorto-Econ560-FinalCoursePaper.docx

  1. 1. 1 Alex Sorto Econ 560: Advanced International Economics Course Paper April 26, 2022 EU and US Cooperation to Construct Greenhouses in the US
  2. 2. 2 Table of Contents Goal.........................................................................................................................................................3 Recent History (policies) ........................................................................................................................4 Theoretical analysis of Current policy in the EU and US, and other Joint Policies..............................13 Empirical analysis of policy proposal...................................................................................................16 Conclusion ............................................................................................................................................18
  3. 3. 3 Goal With a growing population of 10 billion individuals by 2050, more food is needed to meet this demand and feed all the population (World Economic Forum). However, to meet this demand most of the world’s forests would have to be cleared. This would cause higher CO2 emissions and higher temperatures. Thus, a solution is needed. I argue that the solution is greenhouses, and that the U.S. should cooperate with the European Union to construct them. For instance, this issue may not affect us right now although later it will, and it is not on the radar right now. Should we focus on the present or also on the future of our environment and planet? This paper aims to investigate whether greenhouses indeed are a solution that results in better outcomes both for the environment, economy and agriculture (yield) (In the U.S., the Netherlands, and in general). For instance: how is it possible to construct more greenhouses in the US in cooperation with the EU? Two research questions that this paper will try to address are:  Does more area of greenhouses result in less CO2 emissions in the Netherlands? What is the relationship between the variables?  Where is there a higher yield (cereal/grains), in the U.S., or in the Netherlands? What is the relationship between the variables as well? Hypothesis: Greenhouses are a solution that results in less CO2 emissions, a higher standard of living, and higher agriculture productivity in terms of yield. The empirical analysis aims to support how more greenhouses constructed can be beneficial to the U.S. and the environment.
  4. 4. 4 Recent History (policies) The Paris Agreement The United Nations Framework Convention on Climate Change (UNFCC) stated: “The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP 21 in Paris, on 12 December 2015 and entered into force on 4 November 2016. Its goal is to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels. To achieve this long-term temperature goal, countries aim to reach global peaking of greenhouse gas emissions as soon as possible to achieve a climate neutral world by mid-century (UNFCC).” For real change to occur, periodic change needs to be documented. Moreover, innovation across economic and social conditions is needed, through the most up to date science. This calls upon the need to apply framework such as Rodrik’s proposal to focus on a blend of economic policies, such as institutions and a trade is needed. This paper will elaborate on how this approach can be applied for the construction of greenhouses. Moreover, The UNFCC also stated: “The Paris Agreement works on a 5- year cycle of increasingly ambitious climate action carried out by countries. By 2020, countries submit their plans for climate action known as nationally determined contributions (NDCs) (UNFCC).” What are NDCs? “In their NDCs, countries communicate actions they will take to reduce their Greenhouse Gas emissions in order to reach the goals of the Paris Agreement. Countries also communicate in the NDCs actions they will take to build resilience to adapt to the impacts of rising temperatures (UNFCC).” In summary, countries cooperate and communicate innovate practices for the benefit of the environment. Long-Term Strategies
  5. 5. 5 To better frame the efforts towards the long-term goal, the Paris Agreement invites countries to formulate and submit by 2020 long-term low greenhouse gas emission development strategies (LT-LEDS). LT-LEDS provide a long term vision of the countries’ plans. The UNFCC also stated: “Unlike NDCs, they are not mandatory. Nevertheless, they place the NDCs into the context of countries’ long-term planning and development priorities, providing a vision and direction for future development(UNFCC).” But how are countries supporting one another? Paris Agreement support “The Paris Agreement provides a framework for financial, technical and capacity building support to those countries who need it.” This framework could be beneficial for the construction of greenhouses. Finance The agreement reaffirms that lead the way for developing countries in the finance aspect. They state: “Climate finance is needed for mitigation, because large-scale investments are required to significantly reduce emissions. Climate finance is equally important for adaptation, as significant financial resources are needed to adapt to the adverse effects and reduce the impacts of a changing climate”(UNFCC). Technology In the technology aspect, patents and innovation is important for the development of nations. There have to be incentives for this innovation to occur. For instance, “The Paris Agreement speaks of the vision of fully realizing technology development and transfer for both improving resilience to climate change and reducing GHG emissions. It establishes a
  6. 6. 6 technology framework to provide overarching guidance to the well-functioning Technology Mechanism. The mechanism is accelerating technology development and transfer through it’s policy and implementation arms”(UNFCC). Capacity-Building Not all developing countries have sufficient capacities to deal with many of the challenges brought by climate change. As a result, the Paris Agreement places great emphasis on climate-related capacity-building for developing countries and requests all developed countries to enhance support for capacity-building actions in developing countries (UNFCC). How are they tracking progress? With the Paris Agreement, countries established an enhanced transparency framework (ETF). Under ETF, starting in 2024, countries will report transparently on actions taken and progress in climate change mitigation, adaptation measures and support provided or received. It also provides for international procedures for the review of the submitted reports. The information gathered through the ETF will feed into the Global stocktake which will assess the collective progress towards the long-term climate goals (UNFCC). I advocate for the implementation (in the local economy of the U.S.) of a quota/ceiling on CO2 emissions to incentivize the implementation of greenhouses. Subsidies could benefit greenhouse construction as well although harming producers/developers of greenhouses, while benefiting another group. The Paris Agreement restated: “a commitment made in 2009 that the world's richer countries should provide $100bn annually by 2020 to help developing nations deal with the effects of climate change, and build greener economies” (UNFCC). However, in 2019 only $79.6bn was raised. What's more, a recent expert report for the United Nations said the goal would not be reached until 2023 - even though a new and more
  7. 7. 7 ambitious target is supposed to be set for 2025. For many countries, this is the biggest issue to resolve at COP26 - and the very poorest are demanding action (UNFCC). Moreover, I argue that there has to be a consensus/agreement between environment and economy. Pressure for environmental policy regulation makes it highly likely that significant changes in this aspect will occur. Other practices in the U.S. - Precision Agriculture USDA defined precision agriculture as the following: “Precision agriculture, or site- specific crop management (SSM), uses a variety of technologies such as sensing, information technologies, and mechanical systems to manage different parts of a field separately. Sub- field crop management is akin to traditional agricultural practices, wherein small-scale, non- mechanized farming permitted spatially variable treatments”(USDA). Moreover, precision agriculture is a general term to describe farming tools based on observing, measuring, and responding to within-field variability via crop management. It is made possible through the use of Global Positioning System (or GPS satellites) or Global Navigation Satellite System (GNSS), which enable farm managers to respond to field irregularities. This approach allows farmers to make important resource management decisions both on-site and in real-time (USDA). The concept has been around for decades; however, the tools to put precision agriculture into practice are increasing exponentially. As scientists, our job is to help condense tools and practices and evaluate their effectiveness (USDA). In the U.S., larger farms are increasing their use of precision agriculture and overcoming technology barriers to implement practices. But very few small farms in the U.S., which make up greater than 85 percent of U.S. farm totals, have adopted precision
  8. 8. 8 agriculture. Our work is specifically focused on small farmers and tractor guidance systems (USDA). Roughly half of the country's large-scale row crop producers use tractor guidance. In contrast, small farms are largely not adopting tractor guidance technologies (USDA). There is substantial room for increased adoption on small farms, which would potentially lead to economic and environmental savings because decreases in costs often lead to increases in profits. We have learned that on-farm efficiency is especially effective for these small-scale systems. Tractor guidance offers more spatially precise understanding of tractor operations, which lead to reduced operator fatigue, higher yield, and the ability to work longer workdays during inclement conditions. Altogether, these changes may significantly lessen a small farm's fuel, labor, repair, and maintenance costs (USDA). What are some examples of precision agriculture? Tractor guidance (also called autosteer) is a precision agriculture technology that uses GPS and can result in accuracy within one centimeter when planting, spraying herbicide, or applying fertilizer. Another example of a precision agriculture tool is variable rate technology, which allows crop producers to apply variable rates of fertilizer across a field. Regarding precision agriculture generally and the tractor guidance system specifically, how do large farms differ from small ones? (USDA) Large farms tend to have larger fields with row crop agriculture. Small farms can vary from forages to orchards to specialty crops to row crops, so they may be extremely diverse. This diversity requires us to think about research and technology in a different way. Also, input costs can spread out on large farms to absorb the technology investment where small farms may not have this ability (USDA).
  9. 9. 9 But do the benefits of precision agriculture reach consumers? Tractor guidance systems can be profitable for small farms and improve efficiency gains by 20 percent. This technology can potentially improve environmental sustainability by reducing the over application of fertilizers, seed, and herbicide (USDA). For example, if poultry litter or inorganic fertilizer overlaps and gaps were reduced by 20 percent, this would have substantial water quality benefits by reducing the potential for nutrient runoff. Based on our work, tractor guidance can improve economic gains by simply improving on-farm efficiencies. These economic and environmental gains should result in better quality products at competitive prices (USDA). What are the potential economic and environmental impacts of the tractor guidance system you are developing? The USDA claims: “Our team (along with Dr. Mike Popp at the University of Arkansas) developed a decision support tool called "Tractor Guidance Analysis," which helps optimize on-farm decision making for improved economic and environmental impacts using tractor guidance systems. We are also performing research to identify actual overlap and gap reductions when using tractor guidance, as well as the corresponding economic and environmental impacts. We are finding that this technology can reduce diesel, fertilizer, and other inputs, thereby resulting in greater environmental sustainability. Consequently, this technology can pay for itself relatively quickly, even for small-scale producers” (USDA) Next steps in precision agriculture We are predicting a greater adoption of precision agriculture tools with producers that have not historically adopted these technologies (e.g. small farms, pasture-based, and specialty crop producers) (USDA).
  10. 10. 10 Next phases of our research will include trying to understand how the tractor guidance system is affected by field irregularities, the number of trees and ponds, irregular field shapes, and other terrain attributes (such as slope, gradient, etc.) in terms of overlaps and gaps (USDA). In addition, we are interested in formally quantifying some of the environmental gains from tractor guidance through life cycle assessments. We're also focusing on integrating technologies into farm operations by increasing information through digital soil property maps. This will improve soil nutrient and water-use efficiencies (USDA). The Netherlands Yield Standards  A new record yield for Dutch greenhouse was recently announced: 121 kg per m2. In the summer of 2021, BASF Vegetable Seeds stated: “We completed its second full growing season in line with the Plant Empowerment philosophy at its Nunhems location in 's- Gravenzande, the Netherlands. With the support of the multidisciplinary team, the crop production strategy has now been put into practice, achieving a total yield of 121 kg per m2”( BASF Vegetable Seeds). Greenhouses – The Solution Greenhouses are also called protected cultivation; It is possible to grow any plant in any place at any time by growing this house where the micro-climatic conditions are so modified to suit to the crop needs. Protected cultivation in high value vegetable crops can be established even as a small scale industry for major vegetable by progressive farmers or farmer cooperatives especially in areas that are both urban and rural (Singh et al.). Studies indicated the following: “40%–45% naturally ventilated polyhouses, rain-shelters, walk-in- tunnels, shadenets and temporary shelters are in common use for vegetable cultivation in the tropics” (Singh et al.).
  11. 11. 11 Singh et al. provides the following definition for greenhouses: “frames of inflated structure covered with a transparent material in which crops are grown under controlled environment conditions” (Singh et al.). Greenhouse cultivation as well as other modes of controlled environment cultivation has been evolved basically to create favourable micro-climates, which favours crop production all through the year or part of the year as required. In general, greenhouses and other technologies for controlled environment plant production are used with the off-season production of vegetables, ornamentals and food crops of high value in cold climate areas where outdoor production is not possible. The primary environmental condition traditionally controlled is temperature, usually providing heat to overcome extreme cold conditions. In recent times, however, environmental control can also include cooling to mitigate excessive temperatures, light control either shading or adding supplemental light, carbon dioxide levels, RH, water, plant nutrients and pest control (Singh et al.). Besides, Singh et al. also states that rain water harvesting and favoring short duration crops are also the major advantages of these protected structures which make it suitable for tropical islands (Singh et al.). Classification of greenhouses 1. Low cost or low-tech greenhouse Low cost greenhouse is a simple structure constructed with locally available materials such as bamboo, timber. The ultra violet (UV) film is used as cladding materials. Unlike conventional or hi-tech greenhouses, no specific control device for regulating environmental parameters inside the greenhouse is provided (Singh et al.). 2. Medium-tech greenhouse Greenhouse users prefers to have manually or semi-automatic control arrangement owing to minimum investment. This type of greenhouse is constructed using galvanized iron (GI)
  12. 12. 12 pipes. The canopy cover is attached with structure with the help of screws. Whole structure is firmly fixed with the ground to withstand the disturbance against wind (Singh et al.). 3. Hi-tech greenhouse To overcome some of the difficulties in medium-tech greenhouse, a hi-tech greenhouse where the entire device, controlling the environment parameters, are supported to function automatically (Singh et al.). The crops grown in open field are exposed to vivid environmental conditions, attack of insects and pests, whereas the polyhouse provides a more stable environment. Polyhouse can be divided into two types namely, naturally ventilated polyhouse and environmental controlled polyhouse (Singh et al.). The second structure helps to extend the growing season or permits off-season production by way of controlling light, temperature, humidity, carbon-dioxide level and nature of root medium (Singh et al.). Cost involved i. Less expensive greenhouse without fan and pad US$5–8/m2 ii. Medium cost greenhouse with pad and fan system US$13–20/m2 without automation iii. Expensive greenhouses with fully automatic US$30–50/m2 control system. Size of the Greenhouse The dimension of naturally ventilated greenhouse should not be more than 50 m × 50 m. Bigger the greenhouse more will be the temperature build up due to poor ventilation. The length of evaporatively cooled greenhouse should not be more than 60 m. Height and Spacing Between Greenhouses
  13. 13. 13 The maximum height can be up to 5 m for 50 m × 50 m green house and this can be reduced as per the reduced size of the greenhouse. Higher is the greenhouse more is the wind load for structure and glazing. The side ventilation can be of 2 m width and roof ventilation is 1 m in width. The spacing between naturally ventilated green house should be 10–15 m so that the exhaust from one greenhouse should not enter the adjacent greenhouse (Singh et al.). Greenhouse Environment for Plants A greenhouse is an enclosure designed to help create and maintain a suitable environment for enhancing the rates of growth of plants. The main source of heat for any greenhouse should be direct insolation (Singh et al.). Greenhouses require water for irrigation, cooling, pesticide application, root-zone media preparation, and cleanup. A typical greenhouse will use between 12 and 16 l m−2 water per day. Therefore, a one-hectare greenhouse has the potential to use between 120 000 and 160 000 liters per day. The majority of this water is used for irrigation and its rate of use is dependent on the level of solar radiation, greenhouse shading, air movement in the greenhouse, types of plants grown, irrigation system design, and the degree of leaching employed (Singh et al.). Theoretical analysis of Current policy in the EU and US, and other Joint Policies The Netherlands, Leaders in the development of Greenhouses In the Netherlands, there has been a substantial investment in indoor agriculture. It is necessary to grow as much food as possible to feed a densely populated country. There are greenhouses everywhere according to the article by the World Economic Forum. The future of food depends on greenhouses with the growth of the population. Another variable that has affected the world has been climate change (World Economic Forum).
  14. 14. 14 Greenhouses shrink water use, and avoid pesticide use. The future of life depends on answering the question of how we can feed a growing population with shrinking resources. This is somethings that the Netherlands has understood and has embraced greenhouses at a much greater scale than the U.S. The Netherlands is the size of West Virginia, yet it is the second largest exporter of food by value globally. They aim to meet the demand in the market and understand that to do this the high yield that greenhouses provide is needed (World Economic Forum). However, with greenhouses wildlife is endangered. There are always opportunity costs with a proposal, and the one outlined in this paper is no exception. For this reason, the area where greenhouses should be evaluated to minimize wildlife endangerment or put into practice measures before constructing the greenhouses. With a growth in consumption, the world needs innovative solutions such as greenhouses (World Economic Forum). Problem To feed a population of 10 billion people in 2050, clearing most of the world’s forests is needed. This scenario would cause more CO2 emissions and higher temperature. As mentioned above, the Netherlands is a leader in efficient/sustainable agriculture. The country emphasizes greenhouses can limit the impact to the environment while also maximizing yield. The Netherlands agri-food export figures in 2017 show a 101 billion Euros total exports from the Netherlands. The top 5 export products include materials and technology, flowers, dairy and eggs, meat and vegetables, which are mainly exported to Germany, Belgium and the United Kingdom. Moreover, the Netherlands is the EU’s biggest agri-food exporter and the second biggest in the world as mentioned above (Fast Company). It is important to note that land and labor is expensive in the Netherlands. Efficiency is needed to compete and competition drives innovation and technology. Greenhouses use
  15. 15. 15 less water and they reduce CO2 emissions since no pesticides are used. Thus, investment and patents are important for this goal (Fast Company). Acquisition of Greenhouse Technologies Agriculture-tech leader firm Netafirm acquired (in 2021) greenhouse greenhouse company Gakon Horticultural Projects to meet the growing demand for local production in all climates. Netafirm is a leader in precision irrigation solutions and agricultural projects. The firm understood that to increase their global presence, and increase in expertise is needed. The end-consumers of the firm are farmers (PRNewswire). According to the market research platform Statista, there is no database of greenhouse horticulture farms in the U.S. There should be greenhouses in the U.S. but on a much smaller scale (PRNewswire).
  16. 16. 16 Empirical analysis of policy proposal Background in the Netherlands - Greenhouses
  17. 17. 17 Area of Greenhouses and CO2 in the Netherlands Analysis From the above results, it can be concluded that with more area of greenhouses there are not less emissions. While different sources state this as a fact, it cannot be considered as one from the results for this paper. U.S. Yield vs. the Netherlands Yield
  18. 18. 18 Moreover, the qualitative analysis/research does not match the results of the empirical study results shown above. Conclusion It is necessary to adopt greenhouses at a much greater scale in the U.S. While different articles point that in the Netherlands they are more productive, there is not conclusive evidence from the research in this paper regarding greenhouses and its effects on the environment or regarding productivity (yield). The recommendation of this paper is to further investigate the effects of greenhouses on the environment, economy and productivity. A pilot program in the U.S. for greenhouses should be implemented. From the qualitative research of this paper, greenhouses may be beneficial to the environment, productivity and economy. I argue that greenhouses should be implemented due to productivity and addressing the rapid growth of the population.
  19. 19. 19 References 1. Netherlands: Average Agricultural Area per Greenhouse Horticulture Farm 2020 | Statista. https://www.statista.com/statistics/647449/average-utilized-agricultural-area- per-greenhouse-horticulture-farm-in-the-netherlands/. Accessed 24 Apr. 2022. 2. Netherlands: Number of Greenhouse Horticulture Farms 2020 | Statista. https://www.statista.com/statistics/647446/total-number-of-greenhouse-horticulture- farms-in-the-netherlands/. Accessed 24 Apr. 2022. 3. Agricultural Nurseries and Greenhouses | US EPA. https://www.epa.gov/agriculture/agricultural-nurseries-and-greenhouses. Accessed 24 Apr. 2022. 4. AgTech Leader Netafim to Acquire Dutch Greenhouse Company Gakon Horticultural Projects to Meet Growing Demand for Local Food Production in All Climates. https://www.prnewswire.com/ae/news-releases/agtech-leader-netafim-to-acquire- dutch-greenhouse-company-gakon-horticultural-projects-to-meet-growing-demand- for-local-food-production-in-all-climates-842975195.html. Accessed 12 Apr. 2022. 5. Benefits and Evolution of Precision Agriculture : USDA ARS. https://www.ars.usda.gov/oc/utm/benefits-and-evolution-of-precision-agriculture/. Accessed 24 Apr. 2022. 6. CBS Statline. https://opendata-cbs- nl.translate.goog/statline/?_x_tr_sl=nl&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=sc#/CB S/nl/dataset/80780NED/table?fromstatweb. Accessed 24 Apr. 2022. 7. CO2 Emissions (Metric Tons per Capita) - Netherlands | Data. https://data.worldbank.org/indicator/EN.ATM.CO2E.PC?locations=NL. Accessed 24 Apr. 2022.
  20. 20. 20 8. “FAOSTAT.” Choice Reviews Online, vol. 48, no. 05, Jan. 2011, pp. 48-2430-48– 2430. 9. Land Use vs. Yield Change in Cereal Production, 1961 to 2014. https://ourworldindata.org/grapher/land-use-vs-yield-change-in-cereal- production?country=~USA. Accessed 24 Apr. 2022. 10. New Record Yield for Dutch Greenhouse: 121 Kg per M2. https://www.hortidaily.com/article/9379440/new-record-yield-for-dutch-greenhouse- 121-kg-per-m2/. Accessed 24 Apr. 2022. 11. Precision Agriculture | Water And Agriculture Information Center | NAL | USDA. https://www.nal.usda.gov/legacy/waic/precision-agriculture. Accessed 24 Apr. 2022. 12. Ritchie, Hannah, and Max Roser. “Crop Yields - Our World in Data.” Our World in Data, Oct. 2013. 13. See the Netherlands’ Massive Network of Greenhouses from Above. https://www.fastcompany.com/90476025/these-eerily-beautiful-glowing-buildings- are-the-netherlands-massive-network-of-greenhouses. Accessed 9 Apr. 2022. 14. The Netherlands Is a Leader in Sustainable Agriculture | World Economic Forum. https://www.weforum.org/agenda/2019/11/netherlands-dutch-farming-agriculture- sustainable/. Accessed 12 Apr. 2022. 15. The Paris Agreement | UNFCCC. https://unfccc.int/process-and-meetings/the-paris- agreement/the-paris-agreement. Accessed 24 Apr. 2022. 16. UNdata | Explorer. http://data.un.org/Explorer.aspx. Accessed 24 Apr. 2022. 17. Why Is the Paris Climate Agreement Important for COP26? - BBC News. https://www.bbc.com/news/science-environment-35073297. Accessed 24 Apr. 2022. 18. Rodrik, Dani. “Trading in Illusions.” Washingtonpost Newsweek Interactive LLC, Mar. 2001.
  21. 21. 21 19. “Greenhouse.” Greenhouse - an Overview | ScienceDirect Topics, https://www.sciencedirect.com/topics/earth-and-planetary-sciences/greenhouse.

×