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GTAP Resource #733

"GTAP at Work in Denmark - Quantifying and Qualifying a Political Debate"
by Frandsen, Soren and Hans Grinsted Jensen

In March 1999 the Danish Minister of Food, Agriculture and Fisheries invited key policy makers from the food industry, farmers' organisations, consumer organisations and labour unions in Den-mark to discuss the future perspectives for the Danish agricultural and fisheries sectors in a na-tional and global context.

In order to qualify and quantify the debate, the Danish Institute of Agricultural and Fisheries Eco-nomics (SJFI) was called upon to participate in the discussions and to assess the future develop-ment of the Danish agricultural sectors with the aim of identifying challenges and opportunities. SJFI was also asked to analyse the economic consequences of specific policy scenarios, including the impact of higher national standards in relation to environmental protection, animal welfare and food security.

This paper describes how the SJFI team has put GTAP to work in a specific policy context demon-strating the applicability of computable general equilibrium (CGE) models for practical policy ad-vise purposes. It is concluded that such model-based analysis - in spite of its limitations - has influ-enced the political debate in Denmark and that the strength of the CGE approach lies not so much in the exact numerical results, but rather in the focus on important economic mechanisms and link-ages, thereby providing a structured analytical framework. Moreover, the Danish experience illus-trates that using more formal analytical approaches such as CGE modelling contributes to a more focused, disciplined and hence a more constructive policy debate.

Resource Details (Export Citation) GTAP Keywords
Category: 2001 Conference Paper
Status: Published
By/In: Presented at the 4th Annual Conference on Global Economic Analysis, Purdue University, USA
Date: 2001
Created: (7/8/2001)
Updated: Bacou, M. (8/14/2001)
Visits: 2,911
No keywords have been specified.

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