IDEAS home Printed from https://ideas.repec.org/p/wop/iasawp/ir98026.html
   My bibliography  Save this paper

Modeling Producer Decisions on Land Use in Spatial Continuum

Author

Listed:
  • M.A. Keyzer
  • Y.M. Ermoliev

Abstract

The paper describes how stochastic optimization techniques can be used to model profit maximizing producer behavior in a spatial continuum. The main methodological issues to be addressed are, first, that the representation of optimal allocations in a spatial continuum naturally lead to models that contain integrals over space, and the second that the resulting model tends to have a multi-level structure, i.e. requires solving nested optimization problems because it should combine the profit maximization by individual producers with market clearing at regional level. We specify four regional model that may illustrate the approach. The first determines the optimal output level for factories that emit pollutants which reduce the crop output of neighboring farmers. The main issue is to compute the associated level of compensation to be paid by the factories to the farmers. The second model deals with optimal zoning. It computes the optimal crop routing for farmers who can choose to sell their crop to factories situated at given locations. This is an optimization problem in functional space, which can be reformulated as a dual stochastic optimization problem. In the their model, the farmer has the possibility of routing his crop along different roads or distribution nodes to the various factories for processing. It can describe the optimal choice of distribution centers at given locations, around plants or cities, and produces optimal boundaries for the zones that supply to or buy from these centers. The fourth model deals with the problem optimal land consolidation, distinguishes between consolidation processes with and without side-payments. To each of these four models we associate a decentralized, stochastic quasi-gradient (SQG-)procedure for attaining the global) optimum, which has a natural interpretation as a device for decentralized adaptive planning.

Suggested Citation

  • M.A. Keyzer & Y.M. Ermoliev, 1998. "Modeling Producer Decisions on Land Use in Spatial Continuum," Working Papers ir98026, International Institute for Applied Systems Analysis.
  • Handle: RePEc:wop:iasawp:ir98026
    as

    Download full text from publisher

    File URL: http://www.iiasa.ac.at/Publications/Documents/IR-98-026.pdf
    Download Restriction: no

    File URL: http://www.iiasa.ac.at/Publications/Documents/IR-98-026.ps
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Victor Ginsburgh & Michiel Keyzer, 2002. "The Structure of Applied General Equilibrium Models," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262571579, April.
    2. HANSEN, Pierre & LABBE, Martine & PEETERS, Dominique & François THISSE, Jacques, 1987. "Facility location analysis," LIDAM Reprints CORE 747, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. repec:cor:louvrp:-747 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van Wesenbeeck, C.F.A. & Keyzer, M.A. & van Veen, W.C.M. & Qiu, H., 2021. "Can China's overuse of fertilizer be reduced without threatening food security and farm incomes?," Agricultural Systems, Elsevier, vol. 190(C).
    2. M. Alejandro Cardenete & M. Carmen Lima & Ferran Sancho, 2013. "Are There Key Sectors? An Appraisal Using Applied General Equilibrium," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 111-129, Winter.
    3. Haider A. Khan, 2007. "Social Accounting Matrix: A Very Short Introduction for Economic Modeling," CIRJE F-Series CIRJE-F-477, CIRJE, Faculty of Economics, University of Tokyo.
    4. Pogany, Peter, 2013. "Thermodynamic Isolation and the New World Order," MPRA Paper 49924, University Library of Munich, Germany.
    5. Olga Kiuila & Thomas F. Rutherford, 2014. "Economic modeling approaches: optimization versus equilibrium," Working Papers 2014-04, Faculty of Economic Sciences, University of Warsaw.
    6. de Palma, Andre & Proost, Stef, 2006. "Imperfect competition and congestion in the City," Journal of Urban Economics, Elsevier, vol. 60(2), pages 185-209, September.
    7. May Arunanondchai, 2016. "Trade Policy and the Welfare of Southeast-Asian Timber Exporters: Some Implications for Forest Resources," EEPSEA Research Report rr2016056, Economy and Environment Program for Southeast Asia (EEPSEA), revised Apr 2016.
    8. Gianmarco I P Ottaviano & Jacques-François Thisse, 2005. "New Economic Geography: What about the N?," Environment and Planning A, , vol. 37(10), pages 1707-1725, October.
    9. Kiuila, O. & Rutherford, T.F., 2013. "Piecewise smooth approximation of bottom–up abatement cost curves," Energy Economics, Elsevier, vol. 40(C), pages 734-742.
    10. Ken-Ichi Shimomura & Jacques-François Thisse, 2012. "Competition among the big and the small," RAND Journal of Economics, RAND Corporation, vol. 43(2), pages 329-347, June.
    11. Hernandez-Fajardo, Isaac & Dueñas-Osorio, Leonardo, 2013. "Probabilistic study of cascading failures in complex interdependent lifeline systems," Reliability Engineering and System Safety, Elsevier, vol. 111(C), pages 260-272.
    12. Tomoki Ishikura & Fuga Yokoyama, 2022. "Regional economic effects of the Ring Road project in the Greater Tokyo Area: A spatial CGE approach," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 811-837, August.
    13. Smith, Richard D. & Yago, Milton & Millar, Michael & Coast, Jo, 2005. "Assessing the macroeconomic impact of a healthcare problem: The application of computable general equilibrium analysis to antimicrobial resistance," Journal of Health Economics, Elsevier, vol. 24(6), pages 1055-1075, November.
    14. Xueqin Zhu & Lia Wesenbeeck & Ekko Ierland, 2006. "Impacts of Novel Protein Foods on Sustainable Food Production and Consumption: Lifestyle Change and Environmental Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(1), pages 59-87, September.
    15. CHISARI Omar O. & ESTACHE Antonio & LAMBARDI Germán & ROMERO Carlos A., 2010. "Devaluation and Public Services: Trade-Offs and Remedial Policies. A CGE Model for Argentina," EcoMod2003 330700036, EcoMod.
    16. Ahmed, Vaqar & O' Donoghue, Cathal, 2007. "CGE-Microsimulation Modelling: A Survey," MPRA Paper 9307, University Library of Munich, Germany.
    17. Wissema, Wiepke & Dellink, Rob, 2007. "AGE analysis of the impact of a carbon energy tax on the Irish economy," Ecological Economics, Elsevier, vol. 61(4), pages 671-683, March.
    18. Derycke, Pierre-Henri, 2009. "Regards sur l’économie urbaine 40 ans de recherches francophones (1965-2007)," Revue d'économie régionale et urbaine, Editions NecPlus, vol. 2009(02), pages 239-266, June.
    19. Antunes, Antonio & Peeters, Dominique, 2001. "On solving complex multi-period location models using simulated annealing," European Journal of Operational Research, Elsevier, vol. 130(1), pages 190-201, April.
    20. Daniel Serra & Charles Revelle, 1997. "Competitive location and pricing on networks," Economics Working Papers 219, Department of Economics and Business, Universitat Pompeu Fabra.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wop:iasawp:ir98026. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Krichel (email available below). General contact details of provider: https://edirc.repec.org/data/iiasaat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.