IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/277240.html

Economic and environmental implications of a target for bioplastics consumption: A CGE analysis

Author

Listed:
  • Haddad, S.
  • Escobar, N.
  • Britz, W.

Abstract

Private and public initiatives worldwide encourage a shift towards more sustainable production and consumption patterns, including bioplastics. These are, however, essentially produced from food crops. Given the manifold support schemes for the promotion of bioenergy, bioplastic producers also claim for targeted policies. This can further increase competition for biomass globally, with unintended consequences for food prices and the environment. A comprehensive analysis of the effects of a 5% target for bioplastic consumption is presented based on Computable General Equilibrium (CGE) linked to environmental indicators. Both fossil-based plastics and bioplastics are implemented in the GTAP 9 database. Two scenarios are defined: scenario 1 increases consumption taxes on fossil-based plastics while scenario 2 decreases them for bioplastics . Although both generate an expansion of the sector, the tax performs better in economic and also environmental terms, partially due to the substitution for oilseeds in the major producing regions, which even generates afforestation in carbon-rich areas. Only the target in scenario 1 generates an increase in GDP per CO2-eq. saved at global scale. The study shows the usefulness of CGE models as a tool to analyze cost-effectiveness of Bioeconomy-related policies, provided that emerging bio-based sectors and novel technologies are adequately implemented. Acknowledgement : This research has been funded by the German Federal Ministry of Education and Research within the project STRIVE (Sustainable Trade and Innovation Transfer in the Bioeconomy). More information at: www.strive-bioecon.de

Suggested Citation

  • Haddad, S. & Escobar, N. & Britz, W., 2018. "Economic and environmental implications of a target for bioplastics consumption: A CGE analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277240, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277240
    DOI: 10.22004/ag.econ.277240
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/277240/files/1444.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.277240?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Keeney, Roman & Thomas Hertel, 2005. "GTAP-AGR : A Framework for Assessing the Implications of Multilateral Changes in Agricultural Policies," GTAP Technical Papers 1869, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    2. Oecd, 2013. "Policies for Bioplastics in the Context of a Bioeconomy," OECD Science, Technology and Industry Policy Papers 10, OECD Publishing.
    3. 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.
    4. 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.
    5. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    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. Taofeeq D. Moshood & Gusman Nawanir & Fatimah Mahmud & Fazeeda Mohamad & Mohd Hanafiah Ahmad & Airin Abdul Ghani, 2021. "Expanding Policy for Biodegradable Plastic Products and Market Dynamics of Bio-Based Plastics: Challenges and Opportunities," Sustainability, MDPI, vol. 13(11), pages 1-22, May.

    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. Britz, Wolfgang & Li, Jingwen & Shang, Linmei, 2021. "Combining large-scale sensitivity analysis in Computable General Equilibrium models with Machine Learning: An Example Application to policy supporting the bio-economy," Conference papers 333285, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Michetti, Melania & Parrado, Ramiro, "undated". "Improving land-use modelling within CGE to assess forest-based mitigation potential and costs," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124887, Agricultural and Applied Economics Association.
    3. Haddad, Salwa & Britz, Wolfgang & Börner, Jan, "undated". "Impacts Of Increased Forest Biomass Demand In The European Bioeconomy," 57th Annual Conference, Weihenstephan, Germany, September 13-15, 2017 261986, German Association of Agricultural Economists (GEWISOLA).
    4. Hertel, Thomas W. & Tyner, Wallace E. & Birur, Dileep K., 2008. "Biofuels for all? Understanding the Global Impacts of Multinational Mandates," Conference papers 331729, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. 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.
    6. Dixon, Peter B. & Rimmer, Maureen T., 2009. "Simulating the U.S. recession," Conference papers 331862, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Jun Yang & Huanguang Qiu & Jikun Huang & Scott Rozelle, 2008. "Fighting global food price rises in the developing world: the response of China and its effect on domestic and world markets," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 453-464, November.
    8. Alvaro Calzadilla & Katrin Rehdanz & Richard S.J. Tol, 2008. "The Eonomic Impact Of More Sustainable Water Use In Agriculture: A Computable General Equilibrium Analysis," Working Papers FNU-169, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2008.
    9. Arndt Feuerbacher & Jonas Luckmann, Humboldt-University of Berlin, 2017. "Modelling field operations in a computable general equilibrium model: An application to labour shortages in Bhutan," EcoMod2017 10464, EcoMod.
    10. Yujing Niu & Wenying Chen & Zongxin Wu, 2013. "The Economic and Environmental Impact on China of Carbon Tariffs Based on Gage Model," Energy & Environment, , vol. 24(7-8), pages 1295-1307, December.
    11. 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.
    12. Siriwardana, Mahinda & Meng, Sam & McNeill, Judith, 2013. "Border Adjustments under Unilateral Carbon Pricing: Are they Warranted in the Case of Australian Carbon Tax?," Conference papers 332357, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Mörsdorf, George, 2022. "A simple fix for carbon leakage? Assessing the environmental effectiveness of the EU carbon border adjustment," Energy Policy, Elsevier, vol. 161(C).
    14. Kuiper, Marijke, 2007. "What if not all land is created equal? The role of heterogeneous land when assessing the impact of trade liberalization on developing countries," Conference papers 331658, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Huang, Jikun & Yang, Jun & Msangi, Siwa & Rozelle, Scott & Weersink, Alfons, 2012. "Biofuels and the poor: Global impact pathways of biofuels on agricultural markets," Food Policy, Elsevier, vol. 37(4), pages 439-451.
    16. B. Henderson & A. Golub & D. Pambudi & T. Hertel & C. Godde & M. Herrero & O. Cacho & P. Gerber, 2018. "The power and pain of market-based carbon policies: a global application to greenhouse gases from ruminant livestock production," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(3), pages 349-369, March.
    17. Misak Avetisyan & Thomas Hertel & Gregory Sampson, 2014. "Is Local Food More Environmentally Friendly? The GHG Emissions Impacts of Consuming Imported versus Domestically Produced Food," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(3), pages 415-462, July.
    18. Kerkelä, Leena & Pohjola, Johanna & Mäkipää, Raisa, 2003. "Who Gains from Credited Forest Carbon Sinks: Finland and other Annex I Countries in Comparison," Discussion Papers 291, VATT Institute for Economic Research.
    19. Tetsuji Tanaka & Nobuhiro Hosoe, 2011. "What Drove the Crop Price Hikes in the Food Crisis?," GRIPS Discussion Papers 11-16, National Graduate Institute for Policy Studies.
    20. Eduardo Amaral Haddad & Fernando Salgueiro Perobelli, 2004. "Trade Liberalization And Regional Inequality: Do Transportation Costs Impose A Spatial Poverty Trap?," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32nd Brazilian Economics Meeting] 131, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].

    More about this item

    Keywords

    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:iaae18:277240. 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/iaaeeea.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.