Full Title: Analyzing Global Implications of U.S. Biofuels Polices in a Dynamic General Equilibrium Framework
Author(s): Dileep K. Birur and Robert H. Beach
Publisher(s): Agricultural & Applied Economics Association
Publication Date: August 1, 2013
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Description (excerpt):
In this study, we develop GDyn-E-BIO, a multi-region, multi-sector, recursive dynamic CGE model by adapting the GDyn-E-AEZ model (Golub et al., 2012) which was developed bycombining comparative static versions of the GTAP-E (Burniaux and Truong, 2002) and GTAP- BIO (Birur et al. 2008; Taheripour et al. 2010) models and the recursive dynamic GDyn (Ianchovichina and McDougall, 2001). The GDyn (dynamic GTAP) model is a recursive dynamic CGE model where the agents base their decisions on adaptive expectations, with international capital mobility and endogenous capital accumulation. The dynamics in the GDyn model comes from capital accumulation, labor productivity, and other exogenous macro variables such as GDP and population growth. Following the GTAP-BIO model, we further modify the nested constant elasticity of substitution (CES) production structure of firms to allow for production of six first and two second generation biofuels by utilizing their respective feedstock crops along with other factor inputs, and complement with the petroleum products sector. We allow for substitution of all the transportation fuels in the household consumption structure with calibrated elasticity of substitution in each region.