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Enhancing Agriculture and Energy Sector Analysis in CGE Modelling: An Overview of Modifications to the USAGE Model

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  • R. Ashley P. Winston

Abstract

This paper describes some key developments to USAGE, a dynamic computable general equilibrium (CGE) model of the US economy, aimed at enhancing its utility in agricultural and bio-fuels/bio-energy analysis. The USAGE model is a large-scale dynamic CGE model of the US economy developed by the Centre of Policy Studies at Monash University in collaboration with the US International Trade Commission (USITC), and has been updated and modified for this study with assistance from the Economic Research service of the US Department of Agriculture (ERS-USDA). Additional sectoral detail and theory are developed and applied to USAGE, including a detailed modeling of land use in US agriculture involving 72 types of land, the explicit modeling of TRQ policies and by-product biomass supply (such as crop residues) using nested complementarity relationships, and careful accounting for subsidies in US ethanol production and their effects on public revenue streams.

Suggested Citation

  • 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.
  • Handle: RePEc:cop:wpaper:g-180
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    References listed on IDEAS

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    Cited by:

    1. Jevgenijs Steinbuks & Thomas Hertel, 2016. "Confronting the Food–Energy–Environment Trilemma: Global Land Use in the Long Run," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(3), pages 545-570, March.
    2. Jessica A. Bohlmann & Heinrich R. Bohlmann & Roula Inglesi-Lotz, 2015. "An Economy-Wide Evaluation of New Power Generation in South Africa: The Case of Kusile and Medupi," Working Papers 201540, University of Pretoria, Department of Economics.
    3. 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.
    4. Dixon, Peter B. & Koopman, Robert B. & Rimmer, Maureen T., 2013. "The MONASH Style of Computable General Equilibrium Modeling: A Framework for Practical Policy Analysis," Handbook of Computable General Equilibrium Modeling, Elsevier.
    5. Cai, Yongyang & Steinbuks, Jevgenijs & Elliott, Joshua & Hertel, Thomas W., 2014. "The effect of climate and technological uncertainty in crop yields on the optimal path of global land use," Policy Research Working Paper Series 7009, The World Bank.
    6. Narayanan, Badri & Thomas Hertel & Mark Horridge, 2010. "Linking Partial and General Equilibrium Models: A GTAP Application Using TASTE," GTAP Technical Papers 3192, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.

    More about this item

    Keywords

    USAGE; US agriculture; by-product biomass supply; complementarity relationships; ethanol production;

    JEL classification:

    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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