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Dynamic general equilibrium analysis of improved weed management in Australia's winter cropping systems *
Author(s) -
Wittwer Glyn,
Vere David T.,
Jones Randall E.,
Griffith Garry R.
Publication year - 2005
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/j.1467-8489.2005.00308.x
Subject(s) - computable general equilibrium , cropping , productivity , general equilibrium theory , welfare , economics , agriculture , weed , agricultural economics , weed control , partial equilibrium , value (mathematics) , environmental science , natural resource economics , agricultural science , agronomy , mathematics , ecology , macroeconomics , biology , statistics , market economy
A recent analysis indicated that the direct financial cost of weeds to Australia's winter grain sector was approximately $A1.2bn in 1998–1999. Costs of this magnitude represent a large recurring productivity loss in an agricultural sector that is sufficient to impact significantly on regional economies. Using a multi‐regional dynamic computable general equilibrium model, we simulate the general equilibrium effects of a hypothetical successful campaign to reduce the economic costs of weeds. We assume that an additional $50m of R&D spread over five years is targeted at reducing the additional costs and reduced yields arising from weeds in various broadacre crops. Following this R&D effort, one‐tenth of the losses arising from weeds is temporarily eliminated, with a diminishing benefit in succeeding years. At the national level, there is a welfare increase of $700m in discounted net present value terms. The regions with relatively high concentrations of winter crops experience small temporary macroeconomic gains.