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Agricultural Economy

The Agricultural Economy Model (AEM) computes the regional demand for food and feed crops and timber. Production required is determined by the sum of domestic regional demand and net trade.

Agricultural Economy Model
Relations, input and output Determination of animal husbandry and pasture production
Demand for food (animals and crops) products (LEITAP) Demand for wood products

Relations, input and output

Compared to IMAGE 2.2, the model simulating food and feed demand is replaced by an extended version of the GTAP model, under responsibility of LEI (Agricultural Economic Research Institute). Demand for bioenergy is determined by the TIMER model. Demand for timber products and the simulation of number of animals has not been adjusted since the IMAGE 2.2 version.

The output of this part of IMAGE, including net trade, is used in the Land-Cover Model (LCM) to simulate the change in land use and land cover in each region required to meet the demand for food, feed and timber. The LEITAP model usesland supply curves on the basis of the crop model of IMAGE, the Natural Vegetation Model (NVM), to determine food and feed production. The demand for modern and traditional biofuels (i.e., fuelwood and charcoal) is determined by the TIMER energy model. 

Model input and output
Model input (LEITAP)
  • Macro-economy (Income per capita, Capital and Labour growth)
  • Population (from PHOENIX)
  • Land-supply curves (from NVM)
Model input (animal husbandry and pasture)
  • Animal production (from LEITAP)        
Model input (timber)
  • Value added for the industrial sector
  • Current forest area in the region considered (from LCM)
Assumptions
  • Crop productivity growth
  • Dietary preference
  • Degree of substitutability between types of land
  • Income and price elasticities for crop and animal products
  • Productivity of animals for five animal categories
  • Slaughtering of animals (i.e., off-take rate, the ratio of slaughtered animals: total population by animal category)
  • Feed efficiency for pigs and poultry
  • Composition of the feed (grass and fodder species, food crops, residues)
  • Fraction of dairy cattle pregnant
  • Number of horses, mules and asses
Model output for each region
  • Demand and production of crops (7 crop types) 
  • Demand and production of animals (5 animal types) 
  • Number of animals (5 animal types)
  • Production of grass and fodder
  • Demand for wood products (pulpwood and particles; saw logs, veneer and other industrial roundwood)



related dossiers

related theme sites

FAIR: theme-based website of the Netherlands Environmental Assessment Agency. Link to this website. HYDE: theme-based website logo of the Netherlands Environmental Assessment Agency. Link to this website. logo theme site GISMO Phoenix: theme-based website of the Netherlands Environmental Assessment Agency. Link to this website. DGAR - Emissions Database for Global Atmospheric Research. Link to this website.

Key publication