Recycling of Farm Organic Resources and the Environmental Evaluation in Local Economy

Bioethanol (BE) plays an important role in the reduction of greenhouse gas emissions. In order to achieve more efficient results in the environment as well as economics, it is crucial to optimize production and trade of BE under a policy coordination scheme among East Asian countries. This paper aims to show the economic merits of such a policy coordination scheme by the East Asian interregional I/O analysis based on the GTAP 7 database. The simulation results demonstrated that, first, a policy coordination scheme brought about greater induced production within East Asia than a selfsufficiency production scheme. Second, Japan and the USA greatly benefited from policy coordination even though the amount of their BE production increase was small. This is because these countries provide production machinery for plant construction and chemical materials for BE production. Third, BE production under policy coordination contributed to promoting propoor growth in the least developed countries such as Cambodia, Laos, Myanmar and Vietnam by improving agricultural production. Therefore, Japan as a member of East Asia should take the initiative to encourage policy coordination.

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Recycling of Farm Organic Resources and the Environmental Evaluation in Local Economy

Cited by 2 publications

References 2 publications

Rural and Agriculture Development in Regional Science

Rural and Agriculture Development in Regional Science

Economic Ripple Effects of Policy Coordination on Bio-ethanol Production and Trade in East Asia: Application of International Inter-regional Input-Output Analysis

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