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Specifying and Testing an Equilibrium Displacement Model of the Coconut Market in Sri Lanka

Author

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  • Pathiraka, Erandathie
  • Griffith, Garry
  • Farquharson, Robert
  • Faggian, Robert

Abstract

The focus of this study is to develop an economic modelling framework for the coconut industry in Sri Lanka using the equilibrium displacement modelling approach. This is necessary for two main reasons. With the industry shifting from an export oriented industry to a domestic industry and coconut yield becoming highly variable due to climatic factors, a number of government interventions have been implemented according to market conditions. There are a few previous studies which have assessed the impact of these measures on individual industry sectors. However, there is no economic framework to undertake the assessment of various policies being used for the whole industry. In addition, the Sri Lankan coconut sector is likely to be significantly adversely effected by climate change and there are a number of possible adaptation options being considered, but again there is no framework to undertake an economic assessment of these options. In this study we develop and test an equilibrium displacement model of the Sri Lankan coconut industry that will then be available to analyse the economic impact of different climate and policy scenarios and the distribution of these impacts among the various stakeholders in the industry.

Suggested Citation

  • Pathiraka, Erandathie & Griffith, Garry & Farquharson, Robert & Faggian, Robert, 2017. "Specifying and Testing an Equilibrium Displacement Model of the Coconut Market in Sri Lanka," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 25.
    • Handle: RePEc:ags:auagre:285015
    DOI: 10.22004/ag.econ.285015
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    File URL: https://ageconsearch.umn.edu/record/285015/files/AAR-Vol-25-Paper-4-Pathiraja-et-al-161vg7s.pdf
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    Cited by:

    1. Pathiraja, Erandathie & Griffith, Garry & Farquharson, Bob & Faggian, Rob, 2017. "The Economic Cost of Climate Change and the Benefits from Investments in Adaptation Options for Sri Lankan Coconut Value Chains," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 2017(1), June.
    2. Pathiraja, Erandathie & Griffith, Garry & Farquharson, Robert & Faggia, Rob, 2019. "The Cost of Climate Change to Agricultural Industries: Coconuts in Sri Lanka," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 10(05), December.
    3. Pathiraja, Erandathie & Griffith, Garry & Farquharson, Bob & Faggian, Rob, 2017. "The Economic Cost of Climate Change and the Benefits from Investments in Adaptation Options for Sri Lankan Coconut Value Chains," 2018 International European Forum (163rd EAAE Seminar), February 5-9, 2018, Innsbruck-Igls, Austria 276938, International European Forum on System Dynamics and Innovation in Food Networks.

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    Keywords

    Crop Production/Industries; Marketing;

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