Impact of Sand and Dust Storms on Regional Economy Based on Stochastic CGE Model: A Case Study in Inner Mongolia, China

Xinjiletu Yang, Yanwei Yue, Weihong Han, Huiyan Yin and Chunyan Mao

Asian Agricultural Research, 2022, vol. 14, issue 11

Abstract: [Objectives] The paper was to study the impact of sand and dust storms (SDS) on regional economy. [Methods] In this paper, we combined the computable general equilibrium (CGE) model and the Monte Carlo method to examine the impact of SDS on the regional economy, with a focus on GDP, price index, employment rate, industrial structure and output, income and expenditure. We extended the standard CGE model, introduce the stochastic parameters into the production module, which had significant impact on economic output, and inserted the rate of change of the total labor supply and the expenditure share of early warning and protective measures into the income and expenditure module. [Results] SDS had significant impact on regional GDP, employment rate, and industrial output from a macro perspective, and can reduce the income of residents and enterprises and increase expenditures from a micro perspective. The impact can be reduced by taking early warning and protective measures. [Conclusions] The protective measures taken for different grades of SDS have different effects.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ags:asagre:338320

DOI: 10.22004/ag.econ.338320

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