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GTAP Resource #3326

"Transportation costs and bilateral international trade in a global land use model"
by Biewald, Anne, Christoph Schmitz and Hermann Lotze-Campen

Our global land-use model is a spatially explicit model covering the most important crop and livestock production types in ten economic regions worldwide. Until now, trade is simulated by defining minimum self-sufficiency ratios for each region. The rest is then allocated by the model according to comparative advantages. This paper presents an advanced trade version, in which bilateral trade between each of the ten regions is possible. Transport costs for each route and for each of the traded agricultural goods are calculated from the GTAP database and FAO producer prices. Data which are flawed (because of reporting errors or similar) are filtered out. As validation threshold we took the minimum percentage share of transport costs divided by total costs of each good. Resulting data gaps are first filled in by data mirroring the reversered route and if not possible by data derived through interpolation from the correct transport costs. These transport costs are then added as additional costs to the cost minimization objective function of the model.
1.) How trade, production and land use patterns change
when transport costs and trade barriers are varied.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Not published
Date: 2010
Created: Biewald, A. (4/15/2010)
Updated: Batta, G. (5/21/2010)
Visits: 1,970
No keywords have been specified.

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