IDEAS home Printed from https://ideas.repec.org/p/ags/aaea12/124704.html
   My bibliography  Save this paper

Improvement of GTAP Cropland Constant Elasticity of Transformation Nesting Structure

Author

Listed:
  • Li, Liang
  • Taheripour, Farzad
  • Preckel, Paul V.
  • Tyner, Wallace E.

Abstract

This paper suggests a new approach to econometrically estimate parameters of multi-level Constant Elasticity of Transformation (CET) functional forms which are widely used in developing Computable General Equilibrium (CGE) models. An illustrative CET functional form is estimated using the proposed method based on historical data taken from the U.S. economy for the time period of 1996-210 to evaluate the performance of the new method. The proposed estimation process may be used to improve the existing cropland frontier used in GTAP-BIO model. Currently, the cropland frontier in GTAP-BIO model supplies land to different crops using a simple one-level CET function due to the lack of empirically estimated more flexible functional forms. The proposed method provides an opportunity to estimate more flexible multi-level CET functional forms according to available historical data. This will help to change the land supply side of the GTAP-BIO model based on historical observations.

Suggested Citation

  • Li, Liang & Taheripour, Farzad & Preckel, Paul V. & Tyner, Wallace E., 2012. "Improvement of GTAP Cropland Constant Elasticity of Transformation Nesting Structure," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124704, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea12:124704
    DOI: 10.22004/ag.econ.124704
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/124704/files/Improvement%20of%20GTAP%20Cropland%20Constant%20Elasticity%20of%20Transformation%20Nesting%20Structure.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.124704?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lee, Huey-Lin & Hertel, Thomas & Rose, Steven & Avetisyan, Misak, 2008. "An Integrated Global Land Use Data Base for CGE Analysis of Climate Policy Options," GTAP Working Papers 2603, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    2. Roman Keeney & Thomas W. Hertel, 2009. "The Indirect Land Use Impacts of United States Biofuel Policies: The Importance of Acreage, Yield, and Bilateral Trade Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 895-909.
    3. Lee, Huey-Lin & Hertel, Thomas & Rose, Steven & Avetisyan, Misak, 2008. "An Integrated Global Land Use Data Base for CGE Analysis of Climate Policy Options," GTAP Working Papers 2603, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    4. Eboli, Fabio & Parrado, Ramiro & Roson, Roberto, 2010. "Climate-change feedback on economic growth: explorations with a dynamic general equilibrium model," Environment and Development Economics, Cambridge University Press, vol. 15(5), pages 515-533, October.
    5. Brent Sohngen & Robert Mendelsohn & Roger Sedjo, 1999. "Forest Management, Conservation, and Global Timber Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 1-13.
    6. Ahmed, Syud Amer & Thomas Hertel & Ruben Lubowski, 2009. "Calibration of a Land Cover Supply Function Using Transition Probabilities," GTAP Research Memoranda 2947, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    7. Gurgel Angelo & Reilly John M & Paltsev Sergey, 2007. "Potential Land Use Implications of a Global Biofuels Industry," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(2), pages 1-36, December.
    8. Thomas W. Hertel & Marinos E. Tsigas, 1988. "Tax Policy and U.S. Agriculture: A General Equilibrium Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 289-302.
    9. Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    10. Burniaux, Jean-March & Truong, Truong P., 2002. "Gtap-E: An Energy-Environmental Version Of The Gtap Model," Technical Papers 28705, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Keeney, Roman & Hertel, Thomas, 2008. "The Indirect Land Use Impacts of U.S. Biofuel Policies: The Importance of Acreage, Yield, and Bilateral Trade Responses," GTAP Working Papers 2810, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    12. Hertel, Thomas & Rose, Steven & Tol, Richard, 2008. "Land Use in Computable General Equilibrium Models: An Overview," GTAP Working Papers 2595, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    13. R. Ashley P. Winston, 2009. "Enhancing Agriculture and Energy Sector Analysis in CGE Modelling: An Overview of Modifications to the USAGE Model," Centre of Policy Studies/IMPACT Centre Working Papers g-180, Victoria University, Centre of Policy Studies/IMPACT Centre.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sudarshan Chalise & Dr Athula Naranpanawa, 2016. "Climate change adaptation in agriculture: A general equilibrium analysis of land re-allocation in Nepal," EcoMod2016 9272, EcoMod.
    2. Flaig, Dorothee & Grethe, Harald & McDonald, Scott, 2013. "Imperfect labour mobility in a CGE model: Does factor specific productivity matter?," Conference papers 332388, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hertel, Thomas W. & Tyner, Wallace E. & Birur, Dileep K., 2008. "Biofuels for all? Understanding the Global Impacts of Multinational Mandates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6526, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Kretschmer, Bettina & Peterson, Sonja, 2010. "Integrating bioenergy into computable general equilibrium models -- A survey," Energy Economics, Elsevier, vol. 32(3), pages 673-686, May.
    3. Panichelli, Luis & Gnansounou, Edgard, 2015. "Impact of agricultural-based biofuel production on greenhouse gas emissions from land-use change: Key modelling choices," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 344-360.
    4. Monge, Juan J. & Bryant, Henry L. & Gan, Jianbang & Richardson, James W., 2016. "Land use and general equilibrium implications of a forest-based carbon sequestration policy in the United States," Ecological Economics, Elsevier, vol. 127(C), pages 102-120.
    5. Hertel, Thomas, 2013. "Global Applied General Equilibrium Analysis Using the Global Trade Analysis Project Framework," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 815-876, Elsevier.
    6. Francesco Bosello & Lorenza Campagnolo & Raffaello Cervigni & Fabio Eboli, 2018. "Climate Change and Adaptation: The Case of Nigerian Agriculture," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(4), pages 787-810, April.
    7. Britz, Wolfgang & Pérez-Dominguez, Ignacio & Narayanan, Gopalakrishnan Badri, 2015. "Analyzing Results from Agricultural Large-scale Economic Simulation Models: Recent Progress and the Way Ahead," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 64(02), June.
    8. Bouët, Antoine & Dimaranan, Betina V. & Valin, Hugo, 2010. "Modeling the global trade and environmental impacts of biofuel policies," IFPRI discussion papers 1018, International Food Policy Research Institute (IFPRI).
    9. Weslem Rodrigues Faria & Eduardo Amaral Haddad, 2017. "Modeling Land Use And The Effects Of Climate Change In Brazil," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 8(01), pages 1-37, February.
    10. Alvaro Calzadilla & Katrin Rehdanz & Richard Betts & Pete Falloon & Andy Wiltshire & Richard Tol, 2013. "Climate change impacts on global agriculture," Climatic Change, Springer, vol. 120(1), pages 357-374, September.
    11. Bosello, Francesco & Orecchia, Carlo & Parrado, Ramiro, 2013. "The additional contribution of non-CO2 mitigation in climate policy costs and efforts in Europe," Conference papers 332363, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Khellaf, Ayache & Nihou, Abdelaziz & Baray, Abdoul G. & van der Mensbrugghe, Dominique & Liverani, Andrea & Tyner, Wallace E., 2014. "Socioeconomic impacts of green energy growth policy in Morocco - a general equilibrium analysis," Conference papers 332493, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Francesco Bosello & Carlo Orecchia & David A. Raitzer, 2016. "Decarbonization Pathways in Southeast Asia: New Results for Indonesia, Malaysia, Philippines, Thailand and Viet Nam," Working Papers 2016.75, Fondazione Eni Enrico Mattei.
    14. Parrado, Ramiro & De Cian, Enrica, 2014. "Technology spillovers embodied in international trade: Intertemporal, regional and sectoral effects in a global CGE framework," Energy Economics, Elsevier, vol. 41(C), pages 76-89.
    15. Unknown, 2010. "Journal of International Agricultural Trade and Development, Volume 6, Issue 1," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 6(1), pages 135-135, June.
    16. Michetti, Melania & Parrado, Ramiro, 2012. "Improving Land-use modelling within CGE to assess Forest-based Mitigation Potential and Costs," Climate Change and Sustainable Development 122862, Fondazione Eni Enrico Mattei (FEEM).
    17. María Blanco & Marcel Adenäuer & Shailesh Shrestha & Arno Becker, 2012. "Methodology to assess EU Biofuel Policies: The CAPRI Approach," JRC Research Reports JRC80037, Joint Research Centre.
    18. Virginie Doumax-Tagliavini & Cristina Sarasa, University of Zaragoza, 2014. "Biofuels, technological change and uncertainty: Evidence from France," EcoMod2014 6941, EcoMod.
    19. Ujjayant Chakravorty & Marie-Hélène Hubert & Linda Nøstbakken, 2009. "Fuel Versus Food," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 645-663, September.
      • Ujjayant Chakravorty & Marie-Hélène Hubert & Linda Nøstbakken, 2009. "Fuel Versus Food," Post-Print halshs-01117673, HAL.
      • Chakravorty, Ujjayant & Hubert, Marie-Helene & Nostbakken, Linda, 2009. "Fuel versus Food," Working Papers 2009-20, University of Alberta, Department of Economics.
    20. Kim, Sei Jin & Baker, Justin S. & Sohngen, Brent L. & Shell, Michael, 2018. "Cumulative global forest carbon implications of regional bioenergy expansion policies," Resource and Energy Economics, Elsevier, vol. 53(C), pages 198-219.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea12:124704. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.