An integrated PMP model to assess the development of agro-energy crops and the effect on water requirements
AbstractThis paper presents an integrated model for the economic and environmental assessment of the use of natural resources when new activities (i.e. biomass crops for energy production) are introduced into the farm production plan. The methodology is based on the integration of positive mathematical programming (PMP) with the AquaCrop model developed by FAO. PMP represents farmer decision processes and evaluates how farms react to the biomass-sorghum activity option at different price levels. AquaCrop evaluates the relationship between water needs and biomass production and assesses the effect of the land allocation on water requirements at regional level. The integration of these two models assists global policy evaluation at regional level as it makes it possible to identify the economic threshold for biomass crops, the change in land allocation and total water requirement. The model can help policy makers to evaluate the impacts of variations in crop profitability and market innovations on farm profitability, land use and water consumption and the sustainability of the market scenario.
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Bibliographic InfoArticle provided by Italian Association of Agricultural and Applied Economics (AIEAA) in its journal Bio-based and Applied Economics Journal.
Volume (Year): (Bio-Economy)
Issue (Month): 3 ()
Agroenergy economics; Positive Mathematical Programming; water demand; AquaCrop; Agricultural and Food Policy; Land Economics/Use; Resource /Energy Economics and Policy; C61; Q42; Q24; Q25; Q51;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
- Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
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