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Abstract: This paper examines the economic impact of climate change on livestock production in Kenya. We estimate a Ricardian model of net livestock incomes and further estimate the marginal impacts of climate change. We also simulate the impact of different climate scenarios on livestock incomes. The Ricardian results show that livestock production in Kenya is highly sensitive to climate change and that there is a non-linear relationship between climate change and livestock productivity. The estimated marginal impacts suggest modest gains from rising temperatures and losses from increased precipitation. The predictions from atmospheric ocean general circulation models suggest that livestock farmers in Kenya are likely to incur heavy losses from global warming. The highest and lowest losses are predicted from the Hadley Centre Coupled model (HADCM) and Parallel Climate Model (PCM) respectively, based on the Intergovernmental Panel on Climate Change A2 Special Report on Emissions Scenarios. The paper concludes that in the long term, climate change is likely to lead to increased poverty, vulnerability and loss of livelihoods. Several policy interventions are recommended to counter this impact. [Copyright &y& Elsevier]

This paper reviews the knowledge on effects of climate change on agricultural productivity in Europe and the consequences for policy and research. Warming is expected to lead to a northward expansion of suitable cropping areas and a reduction of the growing period of determinate crops (e.g. cereals), but an increase for indeterminate crops (e.g. root crops). Increasing atmospheric CO2 concentrations will directly enhance plant productivity and also increase resource use efficiencies.In northern areas climate change may produce positive effects on agriculture through introduction of new crop species and varieties, higher crop production and expansion of suitable areas for crop cultivation. Disadvantages may be an increase in the need for plant protection, the risk of nutrient leaching and the turnover of soil organic matter. In southern areas the disadvantages will predominate. The possible increase in water shortage and extreme weather events may cause lower harvestable yields, higher yield variability and a reduction in suitable areas for traditional crops. These effects may reinforce the current trends of intensification of agriculture in northern and western Europe and extensification in the Mediterranean and southeastern parts of Europe.Policy will have to support the adaptation of European agriculture to climate change by encouraging the flexibility of land use, crop production, farming systems etc. In doing so, it is necessary to consider the multifunctional role of agriculture, and to strike a variable balance between economic, environmental and social functions in different European regions. Policy will also need to be concerned with agricultural strategies to mitigate climate change through a reduction in emissions of methane and nitrous oxide, an increase in carbon sequestration in agricultural soils and the growing of energy crops to substitute fossil energy use. The policies to support adaptation and mitigation to climate change will need to be linked closely to the development of agri-environmental schemes in the European Union Common Agricultural Policy.Research will have further to deal with the effect on secondary factors of agricultural production, on the quality of crop and animal production, of changes in frequency of isolated and extreme weather events on agricultural production, and the interaction with the surrounding natural ecosystems. There is also a need to study combined effects of adaptation and mitigation strategies, and include assessments of the consequences on current efforts in agricultural policy to develop a sustainable agriculture that also preserves environmental and social values in the rural society. [Copyright &y& Elsevier]