Food Production Vs. Biomass Export Vs. Land-Use Change: A Cge Analysis For Argentina
AbstractWorld trade in biomass is likely to increase in the years up to 2020 as imports are required to meet the demand created (directly or indirectly) by policy measures such as the EU Biofuels Directive. This paper assesses the macroeconomic consequences such large-scale trade for the exporting country, using a computable general equilibrium (CGE) model of Argentina. Given an exogenous increase in world prices for biomass, the model finds that production shifts towards biomass and away from other sectors. Implications of this include changes in the relative prices of goods and the purchasing power of labour. Price rises are largest in land-intensive sectors of the economy and the overall purchasing power of labour is adversely affected since biomass sectors are among the least labour intensive. When expansion of the agricultural area is permitted, relative price changes become less pronounced. However, expansion of the agricultural frontier may have adverse environmental impacts, including lowering the net GHG savings attributable to the biomass produced.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 13442.
Date of creation: 05 Jun 2008
Date of revision: 16 Feb 2009
CGE; Biofuels; Argentina;
Find related papers by JEL classification:
- F18 - International Economics - - Trade - - - Trade and Environment
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-02-22 (Agricultural Economics)
- NEP-ALL-2009-02-22 (All new papers)
- NEP-CMP-2009-02-22 (Computational Economics)
- NEP-ENE-2009-02-22 (Energy Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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