Price Endogenous Mathematical Programming As a Tool for Sector Analysis

McCarl, Bruce A.; Spreen, Thomas H.

doi:10.2307/1239475

Cited by 242 publications

(127 citation statements)

References 17 publications

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“…Demand for food and wood is determined by exogenous population and gross domestic product (GDP) per capita projections and by projections of dietary patterns and trends (53). Equilibrium prices are the result of a simulation to maximize the sum of the producer and consumer surpluses (54). The maximization problem is subject to resource, technological, and policy constraints (55).…”

Section: Methodsmentioning

confidence: 99%

Cattle ranching intensification in Brazil can reduce global greenhouse gas emissions by sparing land from deforestation

Cohn

Mosnier

Havlík

et al. 2014

Proc. Natl. Acad. Sci. U.S.A.

209

136

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This study examines whether policies to encourage cattle ranching intensification in Brazil can abate global greenhouse gas (GHG) emissions by sparing land from deforestation. We use an economic model of global land use to investigate, from 2010 to 2030, the global agricultural outcomes, land use changes, and GHG abatement resulting from two potential Brazilian policies: a tax on cattle from conventional pasture and a subsidy for cattle from semiintensive pasture. We find that under either policy, Brazil could achieve considerable sparing of forests and abatement of GHGs, in line with its national policy targets. The land spared, particularly under the tax, is far less than proportional to the productivity increased. However, the tax, despite prompting less adoption of semi-intensive ranching, delivers slightly more forest sparing and GHG abatement than the subsidy. This difference is explained by increased deforestation associated with increased beef consumption under the subsidy and reduced deforestation associated with reduced beef consumption under the tax. Complementary policies to directly limit deforestation could help limit these effects. GHG abatement from either the tax or subsidy appears inexpensive but, over time, the tax would become cheaper than the subsidy. A revenue-neutral combination of the policies could be an element of a sustainable development strategy for Brazil and other emerging economies seeking to balance agricultural development and forest protection.agricultural intensification | land sparing | climate policy

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Section: Methodsmentioning

confidence: 99%

Cattle ranching intensification in Brazil can reduce global greenhouse gas emissions by sparing land from deforestation

Cohn

Mosnier

Havlík

et al. 2014

Proc. Natl. Acad. Sci. U.S.A.

209

136

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“…Sector models of agriculture simulating competitive markets under fixed resources and production technology have long been common tools in agricultural economics (McCarl and Spreen 1980). Farmland resources are typically assumed to be fixed, while quasi-fixed inputs, such as buildings and machinery, typically have a lifespan of 10-30 years.…”

Section: Resultsmentioning

confidence: 99%

Impacts of reducing red meat consumption on agricultural production in Finland

Lehtonen

Irz²

2013

AFSci

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This paper summarises the simulated effects on Finnish agricultural production and trade of a 20% decrease in Finnish demand for red meat (beef, pork, lamb). According to our results, reduced red meat consumption would be offset by increased consumption of poultry meat, eggs, dairy products and fish, as well as small increases in consumption of fruits and vegetables, peas, nuts, cereal products and sweets. By including the derived demand changes in an agricultural sector model, we show that livestock production in Finland, incentivised by national production-linked payments for milk and bovine animals, would decrease by much less than 20% due to the complex nature of agricultural production and trade. Overall, assuming unchanged consumer preferences and agricultural policy, a 20% reduction in red meat consumption is not likely to lead to a substantial decrease in livestock production or changed land use, or greenhouse gas emissions, from Finnish agriculture.

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“…McCarl and Spreen (1980) compare the linear programming models used by other planned economic systems to the price endogenous model, and the results showed that the price endogenous model can represent the economic system in a perfectly competitive market. The model is useful in the policy analysis including the soil conservation policy , the global climate change (Adams et al 1986;McCarl et al 1999;Reilly et al 2002), and the climate change mitigation (McCarl and Schneider 2000).…”

Section: Mathematical Programming Analysis: Modified Taiwan Agricultumentioning

confidence: 99%

Economic effects of the biochar application on rice supply in Taiwan

Chang¹,

Wen²,

Kung³

2015

AGR ECON-CZECH

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Th e objective of the study is to analyze the economics of the bio-energy production for Taiwan in terms of the bio-energy production, social welfare and crop yield increase under the conventional bio-power, ethanol and pyrolysis. Th e eff ects on rice production patterns are also examined for the fast and slow pyrolysis plus the biochar application. In addition to adopting the mathematical programming model (Modifi ed Taiwan Agricultural Sec tor Model) in the analysis of the bio-energy production and the crop cultivation patterns, the study further employs a nonparametric kernel regression model to forecast the increased benefi ts of rice from using biochar under various scenarios. With the biochar application, Taiwan's rice production could increase ranging from 6308 to 38 118 tons annually, depending on the pyrolysis type and the plant location. Th e results indicate that the biochar utilization can potentially increase social benefi ts if rice is planted. Th e net increase of farmer›s and the environmental revenues can achieve up to NT$ 419 400. Moreover, we fi nd that farmers should give priority to the improvement of nutrient saving to make higher benefi ts. Second, the total benefi ts could be improved if the seed use is effi cient and harvesting and transporting costs for the energy crop and processing and the hauling cost of biochar are lower. Simulation results indicate that Taiwan benefi ts from the bio-energy production in terms of energy security, farmers revenue, social welfare and rice supply. Th e results show that, in general, pyrolysis plus the biochar application not only increase the domestic renewable energy supply but also enhance the farmers' and environmental revenues signifi cantly.

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Price Endogenous Mathematical Programming As a Tool for Sector Analysis

Cited by 242 publications

References 17 publications

Cattle ranching intensification in Brazil can reduce global greenhouse gas emissions by sparing land from deforestation

Cattle ranching intensification in Brazil can reduce global greenhouse gas emissions by sparing land from deforestation

Impacts of reducing red meat consumption on agricultural production in Finland

Economic effects of the biochar application on rice supply in Taiwan

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