Scandinavian Working Papers in Economics

CERE Working Papers,
CERE - the Center for Environmental and Resource Economics

No 2010:6: Towards a dynamic Ecol-Econ CGE model with forest as biomass capital

Örjan Furtenback ()
Additional contact information
Örjan Furtenback: CERE, Postal: CERE, SLU-Umeå and Umeå University

Abstract: This study presents a Dynamic Computable General Equilibrium model that combines economic and ecological aspects of forest biomass. A framework is introduced for modeling the growth of a biomass stock which interacts with economic sectors. Harvest of and demand for forest products and forest amenities are determined endogenously in an inter-temporally consistent way. The idea is based on a Markovian growth model of the forest. The study demonstrates an approach for incorporating non-market values of forests, such as carbon sequestration, recreation and biodiversity, into a growth model. A simulation illustrates harvest behaviour when the economy is subjected to shocks.

Keywords: Dynamic CGE; Markovian growth; Ecosystem modeling; Inter-temporal optimization; Infinite-horizon equilibria

JEL-codes: C68; D58; Q26

24 pages, November 12, 2010

Full text files

CERE_2010_6.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Mona Bonta Bergman ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-01-23 23:37:52.