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Dynamic general equilibrium analysis of improved weed management in Australia's winter cropping systems

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  • Wittwer, Glyn
  • Vere, David T.
  • Jones, Randall E.
  • Griffith, Garry R.

Abstract

A recent analysis indicated that the direct financial cost of weeds to Australia’s winter grain sectorwas approximately $A1.2bn in 1998–1999. Costs of thismagnitude represent a large recurring productivity loss in an agricultural sector that is sufficient to impact significantly on regional economies.Using amulti-regional dynamic computable general equilibrium model, we simulate the general equilibrium effects of a hypothetical successful campaign to reduce the economic costs of weeds. We assume that an additional $50m of R&D spread over five years is targeted at reducing the additional costs and reduced yields arising from weeds in various broadacre crops. Following this R&D effort, one-tenth of the losses arising from weeds is temporarily eliminated, with a diminishing benefit in succeeding years. At the national level, there is a welfare increase of $700m in discounted net present value terms. The regions with relatively high concentrations of winter crops experience small temporary macroeconomic gains.

Suggested Citation

  • Wittwer, Glyn & Vere, David T. & Jones, Randall E. & Griffith, Garry R., 2005. "Dynamic general equilibrium analysis of improved weed management in Australia's winter cropping systems," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), pages 1-15.
    • Handle: RePEc:ags:aareaj:118584
    DOI: 10.22004/ag.econ.118584
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    1. Glyn Wittwer & Simon McKirdy & Ryan Wilson, 2005. "Regional economic impacts of a plant disease incursion using a general equilibrium approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 75-89, March.
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    Cited by:

    1. Katherine Wynn & Mingji Liu & Jasmine Cohen, 2022. "Quantifying the economy‐wide returns to innovation for Australia," Australian Economic Papers, Wiley Blackwell, vol. 61(3), pages 591-614, September.
    2. Horridge, Mark & Wittwer, Glyn, 2008. "SinoTERM, a multi-regional CGE model of China," China Economic Review, Elsevier, vol. 19(4), pages 628-634, December.
    3. Glyn Wittwer & Mark Horridge, 2010. "Bringing Regional Detail to a CGE Model using Census Data," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(2), pages 229-255.
    4. Glyn Wittwer, 2022. "Preparing a multi-country, sub-national CGE model: EuroTERM including Ukraine," Centre of Policy Studies/IMPACT Centre Working Papers g-334, Victoria University, Centre of Policy Studies/IMPACT Centre.
    5. Norbert Szabó & Richárd Farkas & Attila Varga, 2021. "The economic effects of passenger transport infrastructure investments in lagging regions. Would the increase in commuting be beneficial for regional development?," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2099-2123, December.
    6. Francois J. Stofberg & Jan H. van Heerden & Heinrich R. Bohlmann, 2020. "A Fiscus for Better Economic and Social Development in South Africa," Working Papers 202072, University of Pretoria, Department of Economics.
    7. Borrell, Brent & Jiang, Tingsong & Pearce, David & Gould, Ian, 2014. "Payoffs from research and development along the Australian food value chain: a general equilibrium analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), July.
    8. Mark Horridge & Glyn Wittwer, 2006. "The Impacts of Higher Energy Prices on Indonesia’s and West Java’s Economies using INDOTERM, a Multiregional Model of Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 200607, Department of Economics, Padjadjaran University, revised Aug 2006.
    9. Wittwer, Glyn, 2006. "Modelling future urban and rural water requirements in a CGE framework," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139928, Australian Agricultural and Resource Economics Society.
    10. Stofberg, F.J. & van Heerden, J.H. & Horridge, M. & Roos, L., 2022. "A fiscus for better economic and social development in South Africa," Conference papers 333392, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Glyn Wittwer & Onil Banerjee, 2015. "Investing in irrigation development in North West Queensland, Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(2), pages 189-207, April.
    12. Glyn Wittwer & Robert Waschik, 2021. "Estimating the economic impacts of the 2017–2019 drought and 2019–2020 bushfires on regional NSW and the rest of Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(4), pages 918-936, October.

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    Keywords

    Crop Production/Industries;

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