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Land use representation in a global CGE model for long-term simulation: CET vs. logit functions

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Abstract

Land use is one of the key elements in global computable general equilibrium models for food security and agricultural assessment. Constant elasticity transformation (CET) or logit functions have been used to allocate land. CET has the advantage that it is easily handled by modeling tools. However, it does not maintain area balance, whereas logit does. This article compares both functions in future scenarios and evaluates area balance violations of land use area made by CET. We found that agricultural goods production and land use were similar with CET and logit functions. The area balance violation generated by CET was large and heterogeneous across regions, but was small for the aggregated world total. In conclusion, the logit approach was preferable to the CET approach if any scenario assumption, such as consumption preference, changed by much from the base year, or if the main focus of the study was region-specific variables rather than global aggregates.

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Notes

  1. The shapes of the CES and CET functions are the same. The difference is the sign of the elasticity parameter. CES has positive elasticity, whereas CET has negative elasticity.

  2. The land rent in this case is a rent divided by average cropland rent.

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Acknowledgments

This study was supported by the “Global Environmental Research Fund” S-10, and 2–1402 of the Ministry of the Environment of Japan. The authors would like to acknowledge the generosity of these funds. Finally, we wish to thank two anonymous reviewers for their comments which substantially improved the paper.

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Authors and Affiliations

  1. Center for Social and Environmental Systems Research, National Institute for Environmental Studies, 16-2 Onogawa, Tsukuba, Ibaraki, 305-8506, Japan

    Shinichiro Fujimori, Tomoko Hasegawa, Toshihiko Masui & Kiyoshi Takahashi

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  1. Shinichiro Fujimori
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  2. Tomoko Hasegawa
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  3. Toshihiko Masui
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  4. Kiyoshi Takahashi
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Correspondence to Shinichiro Fujimori.

Additional information

Author contributions: S.F. was responsible for the study design, data analysis and manuscript preparation. T.H. contributed data and manuscript preparation. T.M. and K.T. assisted with the study design and helped write the manuscript.

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Fujimori, S., Hasegawa, T., Masui, T. et al. Land use representation in a global CGE model for long-term simulation: CET vs. logit functions. Food Sec. 6, 685–699 (2014). https://doi.org/10.1007/s12571-014-0375-z

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