The purpose of this interdisciplinary study is to evaluate the regional impacts
of agricultural productivity change and the growing instability of agricultural
production using a Korean agricultural sector model. We apply the positive
mathematical programming(PMP) approach of Howitt(1995), which has a
built-in process of keeping the consistency between its model solutions and the
observed data. Moreover, our study makes output prices endogenous by
incorporating market equilibrium conditions into the programming model, and
allows imperfect substitution between imported and domestic foods following
the specification of Dixit(1989). This study finds that substantial regional and
commodity substitution will occur in response to climate change, and hence,
emphasizes the importance of regional and commodity specific adaption