IMPACT OF EXPANDING BIO‐FUEL CONSUMPTION ON HOUSEHOLD INCOME OF FARMERS IN THAILAND: UTILIZING THE COMPUTABLE GENERAL EQUILIBRIUM MODEL
Mitsuru Okiyama and
Suminori Tokunaga
Review of Urban & Regional Development Studies, 2010, vol. 22, issue 2‐3, 109-142
Abstract:
We have selected Thailand, which has set ethanol and bio‐diesel as priority alternative energy sources, and made measurements using the Computable General Equilibrium (CGE) model to identify how policies for promoting and popularizing bio‐fuels have favorably contributed to farmers’ income. The results have revealed that in the case of bio‐fuels as domestic goods and exports, the growth rate of farming household income is 3% to 5% higher than the income of other households. If the bio‐fuel industry can be developed from fossil fuels substituting into the bio‐fuel export sector, farmer household income will increase even more. The disparity among income brackets and regions will further narrow. In addition, the negative effects on agriculture food processing industries will remain small. If the Thai government can carry out its bio‐fuel usage promotion policies as planned, it is possible to use the bio‐fuel industry to reduce income disparity.
Date: 2010
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