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Exploring Environmental-Economic Benefits from Agri-Industrial Diversification in the Sugar Industry: An Integrated Land Use and Value Chain Approach

Author

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  • Roebeling, Peter C.
  • Smith, D. Mark
  • van Grieken, Martijn

Abstract

The sugar industry in Queensland (Australia) is confronted with increasing economic pressure and environmental constraints. To explore whether agri-industrial diversification of the sugar industry provides a sustainable development pathway for the region, we develop a spatial environmental-economic approach that integrates a land use and value chain model with a hydrological model. Results indicate that agri-industrial diversification can lead to substantial increases in regional income, while at the same time increasing the resilience of a sugar industry facing decreasing sugar prices. Agri-industrial diversification drives land use diversification, which under current sugar prices does not lead to a reduction in sugarcane production. Water quality benefits from this land use diversification are mixed, and depend on the economic viability and erosion characteristics of the concerned production systems.

Suggested Citation

  • Roebeling, Peter C. & Smith, D. Mark & van Grieken, Martijn, 2006. "Exploring Environmental-Economic Benefits from Agri-Industrial Diversification in the Sugar Industry: An Integrated Land Use and Value Chain Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25755, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25755
    DOI: 10.22004/ag.econ.25755
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    References listed on IDEAS

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    1. Madhu Khanna & Wanhong Yang & Richard Farnsworth & Hayri Önal, 2003. "Cost-Effective Targeting of Land Retirement to Improve Water Quality with Endogenous Sediment Deposition Coefficients," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 538-553.
    2. Hans G. P. Jansen & Bas A. M. Bouman & Robert A. Schipper & Huib Hengsdijk & André Nieuwenhuyse, 2005. "An interdisciplinary approach to regional land use analysis using GIS, with applications to the Atlantic Zone of Costa Rica," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 87-104, January.
    3. Nelson, Gerald C., 2002. "Introduction to the special issue on spatial analysis for agricultural economists," Agricultural Economics, Blackwell, vol. 27(3), pages 197-200, November.
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