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Reflections on linking economic equilibrium models with agent-based models in the context of agricultural land use

Author

Listed:
  • Schmidt, Alena
  • Appel, Franziska
  • Arfini, Filippo
  • Argueyrolles, Robin
  • Baldi, Lisa
  • Filatova, Tatiana
  • Finger, Robert
  • Ge, Jiaqi
  • Grujić, Nastasija
  • Heckelei, Thomas
  • Huber, Robert
  • Koç, Ahmet Ali
  • Li, Chunhui
  • Mack, Gabriele
  • Müller, Birgit
  • Stepanyan, Davit
  • Will, Meike
  • Delzeit, Ruth

Abstract

Linking computable general or partial equilibrium models with agent-based models can combine the strengths of both modeling concepts. The linking allows to trace global feedback effects while providing a flexible representation of human behavior and social interactions. This linking would facilitate the simulation of interconnected land-use and economic systems while accounting for actors’ heterogeneity, their specializations, and the representation of alternative decision models. In this paper, we examine the challenges that currently hinder the realization of these potential benefits and present a roadmap outlining possible solutions for successful model linking in the context of land use change. The main challenges include: 1) conceptual misalignment between modeling concepts, 2) differences in scales and resolution, 3) difficulties in validation and calibration of linked models, 4) increased complexity in interpreting and communicating results, 5) high demands on compu-tational infrastructure and computational costs, and 6) limited personnel and financial resources. Successfully linking different model concepts and overcoming these challenges requires the modelling communities and stakeholders to engage in long-term, platform-supported dialogue. This dialogue could facilitate the development of a shared framework for model linking, standards for model documentation, validation procedures, and appropriate approaches for communicating and evaluating results. This process will enhance the benefits and sustain the linked models while helping determine circumstances in which the advantages of linking models may outweigh the costs.

Suggested Citation

  • Schmidt, Alena & Appel, Franziska & Arfini, Filippo & Argueyrolles, Robin & Baldi, Lisa & Filatova, Tatiana & Finger, Robert & Ge, Jiaqi & Grujić, Nastasija & Heckelei, Thomas & Huber, Robert & Koç, A, 2026. "Reflections on linking economic equilibrium models with agent-based models in the context of agricultural land use," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8, pages 1-18.
  • Handle: RePEc:zbw:espost:340057
    DOI: 10.18174/sesmo.18872
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    References listed on IDEAS

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    1. Farzad Taheripour & Xin Zhao & Mark Horridge & Farid Farrokhi & Wallace Tyner, 2020. "Land Use in Computable General Equilibrium Models," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 5(2), pages 63-109, December.
    2. Calzadilla, Alvaro & Delzeit, Ruth & Klepper, Gernot, 2014. "DART-BIO: Modelling the interplay of food, feed and fuels in a global CGE model," Kiel Working Papers 1896, Kiel Institute for the World Economy.
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