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Introducing Forest Access Cost Functions into a General Equilibrium Model

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  • Gouel, Christophe
  • Hertel, Thomas

Abstract

The purpose of this Research Memorandum is to propose an approach to incorporating forest access cost functions into global general equilibrium models such as GTAP. Towards this end, we develop a long run access cost function which can be calibrated to national data on total forest land, currently inaccessible forest land, forest land rents, and expected rates of return on investment. This is illustrated for an 11 region aggregation of the GTAP-AEZ data base. We find that this long run function generates far too high a rate of annual access, and so we introduce a short run component which introduces a quadratic term into the cost function. This can be chosen to target current rates of forest access as reported by the FAO. Finally, we discuss the treatment of this new type of investment in the general equilibrium model.

Suggested Citation

  • Gouel, Christophe & Hertel, Thomas, 2006. "Introducing Forest Access Cost Functions into a General Equilibrium Model," GTAP Research Memoranda 2215, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  • Handle: RePEc:gta:resmem:2215
    Note: GTAP Research Memorandum No. 08
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    File URL: https://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=2215
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    Cited by:

    1. Chakravorty, Ujjayant & Hubert, Marie-Helene & Nostbakken, Linda, 2012. "The Long Run Impact of Biofuels on Food Prices," Working Papers 2012-11, University of Alberta, Department of Economics.
    2. repec:eee:ecomod:v:291:y:2014:i:c:p:152-174 is not listed on IDEAS
    3. Jevgenijs Steinbuks & Thomas W. 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.
    4. Si Mokrane Siad & Andrea Gioia & Gerrit Hoogenboom & Vito Iacobellis & Antonio Novelli & Eufemia Tarantino & Pandi Zdruli, 2017. "Durum Wheat Cover Analysis in the Scope of Policy and Market Price Changes: A Case Study in Southern Italy," Agriculture, MDPI, Open Access Journal, vol. 7(2), pages 1-20, February.
    5. Ujjayant Chakravorty & Marie-Hélène Hubert & Beyza Ural Marchand, 2012. "Food for Fuel: The Effect of the US Biofuel Mandate on Poverty in India," CESifo Working Paper Series 3910, CESifo Group Munich.
    6. Ujjayant Chakravorty & Marie-Helene Hubert & Beyza Ural Marchand, 2018. "Food for fuel: The effect of the US biofuel mandate on poverty in India," Discussion Papers Series, Department of Economics, Tufts University 0825, Department of Economics, Tufts University.
    7. Gregor Schwerhoff & Johanna Wehkamp, 2017. "Export Tariffs Combined with Public Investments as a Forest Conservation Policy Instrument," Working Papers 2017.20, Fondazione Eni Enrico Mattei.
    8. 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 (IfW).
    9. Ujjayant Chakravorty & Marie-Hélène Hubert & Michel Moreaux & Linda Nøstbakken, 2012. "Do Biofuel Mandates Raise Food Prices?," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201214, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    10. Ujjayant Chakravorty & Marie-Hélène Hubert & Beyza Ural Marchand, 2016. "The effect of the US biofuels mandate on poverty in India," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 2016-13, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.

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