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Modeling a Dynamic Forest Sector in a General Equilibrium Framework

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  • Tian, Xiaohui
  • Sohngen, Brent
  • Sands, Ronald

Abstract

We develop a dynamic forest sector in a Computable General Equilibrium model. There has been an increasing demand in using general equilibrium models to examine forests' role in climate change mitigation, global land competition and the energy sector. But modeling forestry sector in a general equilibrium context remains an extremely difficult task due to the complex dynamics in forestry management and timer markets. The innovation of this study lies in introducing a land-based and dynamic forest sector and incorporating rational expectations in all the sectors.

Suggested Citation

  • Tian, Xiaohui & Sohngen, Brent & Sands, Ronald, 2013. "Modeling a Dynamic Forest Sector in a General Equilibrium Framework," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149990, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:149990
    DOI: 10.22004/ag.econ.149990
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    References listed on IDEAS

    as
    1. Sands, Ronald & Kim, Man-Keun, 2008. "Modeling the Competition for Land: Methods and Application to Climate Policy," GTAP Working Papers 2606, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    2. Golub, Alla & Hertel, Thomas & Sohngen, Brent, 2008. "Land Use Modeling in Recursively-Dynamic GTAP Framework," GTAP Working Papers 2609, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    3. Sohngen, Brent & Golub, Alla & Hertel, Thomas, 2008. "The Role of Forestry in Carbon Sequestration in General Equilibrium Models," GTAP Working Papers 2610, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    4. Brent Sohngen & Robert Mendelsohn, 2003. "An Optimal Control Model of Forest Carbon Sequestration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 448-457.
    5. Golub, Alla & Hertel, Thomas & Sohngen, Brent, 2008. "Land Use Modeling in Recursively-Dynamic GTAP Framework," GTAP Working Papers 2609, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Environmental Economics and Policy; Land Economics/Use;

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