Modeling Land Intensification Response in GTAP: Implications for Biofuels Induced Land Use Change

Cui, Hao (David) and Wally Tyner

No 332812, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: Proper modeling of land intensification response is critical since it affects, for example, in response to a rise in crop prices driven by biofuels expansion, how land use change in a region may be biased towards the intensive margin as opposed to the extensive margin, and consequently how much greenhouse gas would be emitted. In this paper, we model land intensification characterized by the cropping intensity response to price changes and estimate the response parameter at the global level. We run a modified GTAP-BIO to demonstrate that introduction of this response mechanism would significantly revise the projections of induced land use change. Sensitivity analyses are also conducted for the estimated response parameter to examine the ballpark of relevant land use change variables.

Keywords: Labor and Human Capital; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332812

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