Exploring Environmental-Economic Benefits from Agri-Industrial Diversification in the Sugar Industry: An Integrated Land Use and Value Chain Approach
Peter C. Roebeling,
D. Mark Smith and
Martijn van Grieken
No 25755, 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia from International Association of Agricultural Economists
The sugar industry in Queensland (Australia) is confronted with increasing economic pressure and environmental constraints. To explore whether agri-industrial diversification of the sugar industry provides a sustainable development pathway for the region, we develop a spatial environmental-economic approach that integrates a land use and value chain model with a hydrological model. Results indicate that agri-industrial diversification can lead to substantial increases in regional income, while at the same time increasing the resilience of a sugar industry facing decreasing sugar prices. Agri-industrial diversification drives land use diversification, which under current sugar prices does not lead to a reduction in sugarcane production. Water quality benefits from this land use diversification are mixed, and depend on the economic viability and erosion characteristics of the concerned production systems.
Keywords: Environmental Economics and Policy; Land Economics/Use (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae06:25755
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