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Impact Of Expanding Bio‐Fuel Consumption On Household Income Of Farmers In Thailand: Utilizing The Computable General Equilibrium Model

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  • Mitsuru Okiyama
  • Suminori Tokunaga

Abstract

We have selected Thailand, which has set ethanol and bio‐diesel as priority alternative energy sources, and made measurements using the Computable General Equilibrium (CGE) model to identify how policies for promoting and popularizing bio‐fuels have favorably contributed to farmers’ income. The results have revealed that in the case of bio‐fuels as domestic goods and exports, the growth rate of farming household income is 3% to 5% higher than the income of other households. If the bio‐fuel industry can be developed from fossil fuels substituting into the bio‐fuel export sector, farmer household income will increase even more. The disparity among income brackets and regions will further narrow. In addition, the negative effects on agriculture food processing industries will remain small. If the Thai government can carry out its bio‐fuel usage promotion policies as planned, it is possible to use the bio‐fuel industry to reduce income disparity.

Suggested Citation

  • Mitsuru Okiyama & Suminori Tokunaga, 2010. "Impact Of Expanding Bio‐Fuel Consumption On Household Income Of Farmers In Thailand: Utilizing The Computable General Equilibrium Model," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 22(2‐3), pages 109-142, July.
    • Handle: RePEc:bla:revurb:v:22:y:2010:i:2-3:p:109-142
    DOI: 10.1111/j.1467-940X.2010.00172.x
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    Cited by:

    1. Khampheng Boudmyxay & Shuai Zhong & Lei Shen, 2019. "Designing Optimum Water-Saving Policy in China Using Quantity and Price Control Mechanisms," Sustainability, MDPI, vol. 11(9), pages 1-20, May.
    2. Ji, Xi & Long, Xianling, 2016. "A review of the ecological and socioeconomic effects of biofuel and energy policy recommendations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 61(C), pages 41-52.
    3. Proque, Andressa Lemes & Betarelli Junior, Admir Antonio & Perobelli, Fernando Salgueiro, 2022. "Fuel tax, cross subsidy and transport: Assessing the effects on income and consumption distribution in Brazil," Research in Transportation Economics, Elsevier, vol. 95(C).
    4. Elizondo, Alejandra & Boyd, Roy, 2017. "Economic impact of ethanol promotion in Mexico: A general equilibrium analysis," Energy Policy, Elsevier, vol. 101(C), pages 293-301.

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