IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/13442.html
   My bibliography  Save this paper

Food Production Vs. Biomass Export Vs. Land-Use Change: A Cge Analysis For Argentina

Author

Listed:
  • Perry, Miles

Abstract

World trade in biomass is likely to increase in the years up to 2020 as imports are required to meet the demand created (directly or indirectly) by policy measures such as the EU Biofuels Directive. This paper assesses the macroeconomic consequences such large-scale trade for the exporting country, using a computable general equilibrium (CGE) model of Argentina. Given an exogenous increase in world prices for biomass, the model finds that production shifts towards biomass and away from other sectors. Implications of this include changes in the relative prices of goods and the purchasing power of labour. Price rises are largest in land-intensive sectors of the economy and the overall purchasing power of labour is adversely affected since biomass sectors are among the least labour intensive. When expansion of the agricultural area is permitted, relative price changes become less pronounced. However, expansion of the agricultural frontier may have adverse environmental impacts, including lowering the net GHG savings attributable to the biomass produced.

Suggested Citation

  • Perry, Miles, 2008. "Food Production Vs. Biomass Export Vs. Land-Use Change: A Cge Analysis For Argentina," MPRA Paper 13442, University Library of Munich, Germany, revised 16 Feb 2009.
    • Handle: RePEc:pra:mprapa:13442
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/13442/1/MPRA_paper_13442.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas F. Rutherford & David Tarr, 2017. "Regional Trading Arrangements for Chile: Do the Results Differ with a Dynamic Model?," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 18, pages 415-437, World Scientific Publishing Co. Pte. Ltd..
    2. Rutherford, Thomas F, 1999. "Applied General Equilibrium Modeling with MPSGE as a GAMS Subsystem: An Overview of the Modeling Framework and Syntax," Computational Economics, Springer;Society for Computational Economics, vol. 14(1-2), pages 1-46, October.
    3. Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers Archive 12881, Iowa State University, Department of Economics.
    4. Ignaciuk, Adriana M. & Dellink, Rob B., 2006. "Biomass and multi-product crops for agricultural and energy production--an AGE analysis," Energy Economics, Elsevier, vol. 28(3), pages 308-325, May.
    5. von Braun, Joachim, 2007. "The world food situation: New driving forces and required actions," Food policy reports 18, International Food Policy Research Institute (IFPRI).
    6. Bohringer, Christoph & Rutherford, Thomas F., 2008. "Combining bottom-up and top-down," Energy Economics, Elsevier, vol. 30(2), pages 574-596, March.
    Full references (including those not matched with items on IDEAS)

    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. Dai, Hancheng & Mischke, Peggy & Xie, Xuxuan & Xie, Yang & Masui, Toshihiko, 2016. "Closing the gap? Top-down versus bottom-up projections of China’s regional energy use and CO2 emissions," Applied Energy, Elsevier, vol. 162(C), pages 1355-1373.
    2. Sara Proença, 2013. "The role of renewable energy in Portugal´s decarbonisation strategy – application of the HyBGEM model," EcoMod2013 5647, EcoMod.
    3. Doumax, Virginie & Philip, Jean-Marc & Sarasa, Cristina, 2014. "Biofuels, tax policies and oil prices in France: Insights from a dynamic CGE model," Energy Policy, Elsevier, vol. 66(C), pages 603-614.
    4. Virginie Doumax & Jean-Marc Philip & Cristina Sarasa, 2013. "Biofuels, tax policies and oil price: insights from a dynamic CGE model," EcoMod2013 5417, EcoMod.
    5. JESPER JENSEN & Thomas F. Rutherford & David G. Tarr, 2014. "Modeling Services Liberalization: The Case of Tanzania," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 9, pages 191-222, World Scientific Publishing Co. Pte. Ltd..
    6. Balistreri, Edward J. & Rutherford, Thomas F. & Tarr, David G., 2009. "Modeling services liberalization: The case of Kenya," Economic Modelling, Elsevier, vol. 26(3), pages 668-679, May.
    7. Rausch, Sebastian & Mowers, Matthew, 2014. "Distributional and efficiency impacts of clean and renewable energy standards for electricity," Resource and Energy Economics, Elsevier, vol. 36(2), pages 556-585.
    8. Omar Chisari & Antonio Estache & Gaetan Nicodeme, 2016. "Efficiency and Equity Effects of Taxing the Financial Sector: Lessons from a CGE Model for Belgium," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 72(2), pages 125-157, June.
    9. Jesper Jensen & Thomas Rutherford & David Tarr, 2014. "The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 6, pages 125-149, World Scientific Publishing Co. Pte. Ltd..
    10. Ghosh, Madanmohan & Luo, Deming & Siddiqui, Muhammad Shahid & Zhu, Yunfa, 2012. "Border tax adjustments in the climate policy context: CO2 versus broad-based GHG emission targeting," Energy Economics, Elsevier, vol. 34(S2), pages 154-167.
    11. Makena Coffman & Paul Bernstein, 2015. "Linking Hawaii’s Islands with wind energy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 1-21, January.
    12. Grant J. Allan, 2015. "The Regional Economic Impacts of Biofuels: A Review of Multisectoral Modelling Techniques and Evaluation of Applications," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 615-643, April.
    13. Weng, Yuwei & Cai, Wenjia & Wang, Can, 2021. "Evaluating the use of BECCS and afforestation under China’s carbon-neutral target for 2060," Applied Energy, Elsevier, vol. 299(C).
    14. Andreas Peichl & Thilo Schaefer, 2009. "FiFoSiM - an integrated tax benefit microsimulation and CGE model for Germany," International Journal of Microsimulation, International Microsimulation Association, vol. 2(1), pages 1-15.
    15. Sara Proença & Miguel St. Aubyn, 2012. "A low-carbon strategy for Portugal – a hybrid CGE modelling approach," EcoMod2012 4527, EcoMod.
    16. Hübler, Michael & Löschel, Andreas, 2013. "The EU Decarbonisation Roadmap 2050—What way to walk?," Energy Policy, Elsevier, vol. 55(C), pages 190-207.
    17. Wu, Yi-Hua & Liu, Chia-Hao & Hung, Ming-Lung & Liu, Tzu-Yar & Masui, Toshihiko, 2019. "Sectoral energy efficiency improvements in Taiwan: Evaluations using a hybrid of top-down and bottom-up models," Energy Policy, Elsevier, vol. 132(C), pages 1241-1255.
    18. Martin T. Ross, 2018. "Regional Implications Of National Carbon Taxes," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(01), pages 1-39, February.
    19. Bindraban, Prem S. & Bulte, Erwin H. & Conijn, Sjaak G., 2009. "Can large-scale biofuels production be sustainable by 2020?," Agricultural Systems, Elsevier, vol. 101(3), pages 197-199, July.
    20. Karydas, Christos & Zhang, Lin, 2019. "Green tax reform, endogenous innovation and the growth dividend," Journal of Environmental Economics and Management, Elsevier, vol. 97(C), pages 158-181.

    More about this item

    Keywords

    CGE; Biofuels; Argentina;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

    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:pra:mprapa:13442. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.