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GTAP Resources: Resource Display

GTAP Resource #7025

"The economy-wide impacts of a large-scale electric fencing intervention in Bhutan"
by Feuerbacher, Arndt, Tshotsho, Christine Wieck and Christian Lippert


Abstract
National policy responses towards human-wildlife conflicts (HWC) are becoming increasingly relevant in the light of population growth and dwindling wildlife habitat. Yet, mitigation strategies at (sub-) national level are often resource intensive, particularly for low-income countries. Moreover, the HWC literature largely focused on socio-ecological interactions at the micro-level and there has been no research on how potential benefits from labour savings and reduced crop damages materialize once general equilibrium effects are accounted for. The contribution of this study is to assess the upscaling of HWC mitigation policies using an economy-wide model approach. Bhutan, where more than half of the population relies on agriculture, serves as a case study. Throughout Bhutan, HWCs present the highest ranked farming constraint due to crop raiding herbivores leading to farm abandonment and increasing labour shortages. Investments in low-cost electric fencing have been highly cost-effective and are expanding because of substantial subsidies by the government of Bhutan. The study employs a computable general-equilibrium model to ex- ante simulate the economy-wide effects of a comprehensive, large-scale electric fencing policy scenario in Bhutan in which the percentage of fenced cropland increases from 10% to 35%. The model representation accounts for many peculiarities of the rural economy, e.g., different agro- ecological zones and the seasonality of labour. In all, the results shall give insights on how this policy would impact rural household welfare by changes in agricultural wages and changes in agricultural prices and output. Policy implications and avenues for further research will be highlighted.


Resource Details (Export Citation) GTAP Keywords
Category: 2023 Conference Paper
Status: Published
By/In: Presented during the 26th Annual Conference on Global Economic Analysis (Bordeaux, France)
Date: 2023
Version:
Created: Feuerbacher, A. (4/16/2023)
Updated: Batta, G. (4/18/2023)
Visits: 255
- Ecosystem services and biodiversity
- Environmental policies
- Land use
- Agricultural policies
- Food prices and food security
- Economic development
- Labor market issues
- Asia (South-Central)


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