Computable General Equilibrium Analysis of the Economic and Land-use Interfaces of Bio-energy Development
AbstractThis paper explores the inter-sectoral and land-use dynamics behind the development of bio-energy as a climate change policy through a computable general equilibrium (CGE) with a land use change (LUC) model. It assesses the economic and social costs of bio-energy development both in terms of the financial investment needed for its market penetration and in terms of the trade-offs its future supply will entail upon the land-use system. It analyzes how policies directed to develop bio-energy alters the pattern of energy mix and land utilization in the economy and how these changes in turn contribute to carbon dioxide (CO2) mitigation. Policies analyzed in the study include carbon tax with revenues recycled upon bio-energy subsidy and upon direct tax reductions. It presents as well the implications of extending the scope of carbon taxation to emissions from energy use and from land-use changes.
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Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25536.
Date of creation: 2006
Date of revision:
Resource /Energy Economics and Policy; D58; Q4; Q52; H23; O13;
Find related papers by JEL classification:
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
- Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
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- Löfgren, Hans & Harris, Rebecca Lee & Robinson, Sherman, 2001. "A standard computable general equilibrium (CGE) model in GAMS," TMD discussion papers 75, International Food Policy Research Institute (IFPRI).
- Reilly, John & Hohmann, Neil, 1993. "Climate Change and Agriculture: The Role of International Trade," American Economic Review, American Economic Association, vol. 83(2), pages 306-12, May.
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