chapter  1
28 Pages

Land use in computable general equilibrium models: An overview

ByTHOMAS W. HERTEL, STEVEN ROSE AND RICHARD S.J . TOL

Human intervention over the last several centuries has markedly changed land surface characteristics, primarily through large-scale land conversion for cultivation (Vitousek et al., 1997). The future is expected to see a continuation of this transformation. Populations and economies continue to grow, and climate change and climate policy will affect land use at a massive scale. However, land has long been neglected in global economics. That is now changing. For the first time, modelling teams have explicitly introduced global land use into computable general equilibrium (CGE)models, theworkhorses of economic policy analysis. In this book, we present a collection of pioneering papers in the applied economics of land use inCGEmodels. This book describes and critically assesses the underlying data, the methodologies used and the first CGE applications. The applications are all with respect to climate change and climate policy, but the methods and data can also be used for other applications, such as sustainable development, food security, energy security and nature conservation.