A Regional Computable General Equilibrium Model with Applications for the Pacific Northwest

A Regional Computable General Equilibrium Model with Applications for the Pacific Northwest
Author: Xiaojuan Zheng
Publisher:
Total Pages: 138
Release: 2014
Genre: Biomass energy industries
ISBN:

Many important policy problems entail linkages among multiple economic sectors, and require the use of a general equilibrium economic modeling framework. This economic approach is appropriate when the market for any one good or service is linked to numerous other goods and services, and back to fundamental inputs such as labor and capital. In this dissertation, a computable general equilibrium (CGE) model for the Pacific Northwest region is developed. It describes all parts of Pacific Northwest economy simultaneously and how its industries, households, government institutions, and factors of production interact with each other. The model is used to address two policy issues in the Northwest: development of a new biofuels supply chain, and the impact of future events such as climate change on Pacific Northwest farmers. Before these applications are carried out, a major effort is made to estimate the parameters of the general equilibrium model, and to validate that the model is representative of the regional economy. Techniques from the literature on calibration of macro-economic models are employed, in conjunction with historical agricultural price and quantity data for the Northwest. These methods allow greater confidence to be placed in the analyses that follow. Once the model is parameterized and validated, the first application concerns the potential of an oilseed crop, camelina, to be used as a new biofuel for the aviation sector. The aim of this study is to identify conditions and policies under which a supply chain could be developed within the Northwest. Several policy options are examined within the model with regard to meeting stated targets by the aviation sector for using camelina as a biofuel. Model results indicate that a regional supply chain for biofuels is unlikely to develop unless subsidies are targeted to particular activities, including farming and processing. Particular estimates of these subsidies are derived. The second application of the model concerns how the Pacific Northwest wheat economy will be affected by long-run changes in climate, population growth, input costs, and other phenomena. A series of possible future scenarios, called Representative Agricultural Pathways (RAPs), are developed to describe trends in key drivers at the regional and global scales. These RAPs are quantified and integrated as simulations into the CGE model, the first time this has been done within the literature. In general the health of the Pacific Northwest wheat sector, as represented by wheat prices, exports quantities, and producer economic welfare, appears to be quite viable under a range of alternative future scenarios.

Multi-regional Dynamic General Equilibrium Modeling of the U.S. Economy

Multi-regional Dynamic General Equilibrium Modeling of the U.S. Economy
Author: Glyn Wittwer
Publisher: Springer
Total Pages: 241
Release: 2017-07-26
Genre: Business & Economics
ISBN: 3319588664

This book details the preparation of USAGE-TERM, a computable general equilibrium model that provides regional economic detail in the USA. The model can represent either congressional district or state level economic activity. The latter may include a top-down representation of county activity. Interest in USAGE-TERM is growing among government departments. It is a practical tool, which may enhance analysis of productivity growth and innovation, adverse events such as drought or civil disruption and the dynamic economic impacts of major projects.Economic analysts and policy makers care about regions. Some regions suffer growing pains, as supporting infrastructure and services struggle to cope with population growth. Soaring house prices and rentals may lower affordability for many. Other regions suffer ongoing decline due to structural change. Regional economic fluctuations are often far more dramatic than national fluctuations.

Regional Computable General Equilibrium Models

Regional Computable General Equilibrium Models
Author: Bobby Thomas Cameron
Publisher:
Total Pages: 0
Release: 2022
Genre:
ISBN:

Computable General Equilibrium (CGE) models are very popular for analyzing a wide range of policy issues. CGE applications vary from estimating the welfare impact of tax reform and alternative energy policies to the effect of foreign trade reforms, labour markets and employment. CGE models are commonly developed at the country level; however, modified versions of CGE, so called Regional CGE (RCGE) models, can be used at subnational disaggregation to examine impacts studied at the national counterparts on a specific region. RCGE models have grown in popularity as an alternative to the Input-Output (I-O) models, which are regularly used for regional analysis. RCGE models can provide comprehensive information, which make them more desirable analytical models for many researchers. Yet, RCGE models have not yet become a “go-to” for governmental policy practitioners when they are developing regional public policies. This paper reviews the current state of regional CGE models, describes their features, contributions and limitations and surveys some applications of the main three classes of RCGE models: region-specific, bottom-up, and top-down models. This paper concludes that the applications of RCGE are quite variable and flexible, with a new and more complex type of application to be developed with the advancement of computation economics. The paper offers recommendations on the micro, meso and macro conditions that are necessary to increase policy practitioners' utilization of RCGE models.

A Computable General Equilibrium Model of Cedar Rapids

A Computable General Equilibrium Model of Cedar Rapids
Author: Jennifer Helgeson
Publisher:
Total Pages: 25
Release: 2018
Genre: Computable general equilibrium models
ISBN:

This report presents the development of a Computable General Equilibrium (CGE) model for the regional economy of Cedar Rapids, Iowa. The general approach that this case study takes is outlined in Helgeson et al. [1] as a method to quantify the net co-benefits of investing in increased resilience, or the "resilience dividend." The current report provides the background on Cedar Rapids as a case study in planning for increased resilience and provides an overview of the CGE model of Cedar Rapids at two different time periods. This report is intended to provide context and background for future applications of the Cedar Rapids CGE model to quantify the resilience dividend.

Computable General Equilibrium Modeling

Computable General Equilibrium Modeling
Author: KENNETH. FELTENSTEIN CASTELLANOS (ANDREW. SEDRAKYAN, GOHAR.)
Publisher: Routledge
Total Pages: 0
Release: 2023-09-11
Genre:
ISBN: 9780367272074

There are certain important areas for economic policy that have been largely overlooked. This intermediate/advanced text presents the topic as a methodology for the analysis of macro and fiscal policies in modern economies, while introducing levels of disaggregation that are beyond the scope of standard macro models.

Understanding Risks and Uncertainties in Energy and Climate Policy

Understanding Risks and Uncertainties in Energy and Climate Policy
Author: Haris Doukas
Publisher: Springer
Total Pages: 271
Release: 2018-12-10
Genre: Business & Economics
ISBN: 3030031527

This open access book analyzes and seeks to consolidate the use of robust quantitative tools and qualitative methods for the design and assessment of energy and climate policies. In particular, it examines energy and climate policy performance and associated risks, as well as public acceptance and portfolio analysis in climate policy, and presents methods for evaluating the costs and benefits of flexible policy implementation as well as new framings for business and market actors. In turn, it discusses the development of alternative policy pathways and the identification of optimal switching points, drawing on concrete examples to do so. Lastly, it discusses climate change mitigation policies’ implications for the agricultural, food, building, transportation, service and manufacturing sectors.