Dynamic general equilibrium analysis of improved weed management in Australia's winter cropping systems

Glyn Wittwer, David T. Vere, Randall E. Jones and Garry R. Griffith

Australian Journal of Agricultural and Resource Economics, 2005, vol. 49, issue 4, 15

Abstract: A recent analysis indicated that the direct financial cost of weeds to Australia’s winter grain sectorwas approximately $A1.2bn in 1998–1999. Costs of thismagnitude represent a large recurring productivity loss in an agricultural sector that is sufficient to impact significantly on regional economies.Using amulti-regional dynamic computable general equilibrium model, we simulate the general equilibrium effects of a hypothetical successful campaign to reduce the economic costs of weeds. We assume that an additional $50m of R&D spread over five years is targeted at reducing the additional costs and reduced yields arising from weeds in various broadacre crops. Following this R&D effort, one-tenth of the losses arising from weeds is temporarily eliminated, with a diminishing benefit in succeeding years. At the national level, there is a welfare increase of $700m in discounted net present value terms. The regions with relatively high concentrations of winter crops experience small temporary macroeconomic gains.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (11)

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Journal Article: Dynamic general equilibrium analysis of improved weed management in Australia's winter cropping systems (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aareaj:118584

DOI: 10.22004/ag.econ.118584

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