A Spatial Mathematical Model Analysis of the Linkage between Agricultural Trade and Deforestation

Christoph Schmitz and Hermann Lotze-Campen

No 115993, 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland from European Association of Agricultural Economists

Abstract: Like agricultural trade, deforestation has increased tremendously throughout the past five decades. We analyse the linkage between both factors by applying trade and forest policy scenarios to the global land-use model MAgPIE ("Model of Agricultural Production and its Impact on the Environment"). The model predicts global landuse patterns in a spatially explicit way and uses endogenously derived technological change and land expansion rates. Our study is the first which combines global trade analysis with a spatially explicit mapping of deforestation. By implementing self-sufficiency rates in the regional demand and supply equations, we are able to simulate different trade settings. Our baseline scenario fixes current trade patterns until the year 2045. The three liberalisation scenarios assume a path of increasing trade liberalisation which ends with no trade barriers in 2045 and they differ by applying different forest protection policies. Regions with comparative advantages like Latin America for oilcrops and China for cereals will export more. Whereas, Latin America will buy this competitiveness by converting large parts of its Amazonian rainforest into cropland, China will benefit most due to its decreasing food demand after 2025. In contrast, regions like the Middle East, North Africa and South Asia face the highest increases of imports. Forest protection policies lead to higher technological change rates. In absence of such policies, investments in agricultural Research & Development are the most effective way for protecting the forest.

Keywords: International Relations/Trade; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 14
Date: 2011-09-02
New Economics Papers: this item is included in nep-agr, nep-env and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae11:115993

DOI: 10.22004/ag.econ.115993

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