A Dynamic General Equilibrium Model of Food and Energy Crop

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Keywords:
energy crop optimal control sustainable developmentJEL

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Aerwadee Premashthira
Faculty of Economics, Kasetsart University, Bangkok, 10900, Thailand
Kenneth S. Lyon
Department of Applied Economics, Utah State University, Utah, 84322-1400, USA

Abstract

Abstract

This essay develops a dynamic general equilibrium model of an energy crop. The model can guide policy to resolve the ‘food or fuel’ dilemma. Data from Thailand were employed in calibrating the model, with cassava as the energy crop. The stationary state solution gave the set of optimal consumption, production, and allocation of resources in the economy. An approximation of optimal policy function and optimal time paths was derived by using the linear approximation method and the Runke-Kutta reverse shooting method.The results of the model provide the basic information for decision makers in optimal allocation of resources for the production of crops for food and biofuel.

Keywords : energy crop, optimal control, sustainable developmentJEL

Classification : C61, Q40

Article Details

How to Cite
Premashthira, A., & Lyon, K. S. (2013). A Dynamic General Equilibrium Model of Food and Energy Crop. Asian Journal of Applied Economics, 19(2), 18–36. Retrieved from https://so01.tci-thaijo.org/index.php/AEJ/article/view/10281
Issue
Vol. 19 No. 2 (2012): December
Section
Research Articles

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