GTAP Resources: Resource Display
| GTAP Resource #7500 |
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"Stable energy supply as a driver of industrial and agricultural development – an economy-wide analysis for Benin" by Kinkpe, Thierry, Jonas Luckmann and Harald Grethe Abstract Industrial activities—particularly those involving the processing of agricultural commodities—add value to these commodities and can create new marketing opportunities for agriculture-based economies. However, one of the key bottlenecks hindering the development of such industries in many developing countries is the lack of a stable energy supply. This paper addresses this issue by simulating industrial development using a Computable General Equilibrium (CGE) model. Specifically, the Static Applied General Equilibrium (STAGE) model is extended to create the STAGE_Energy (STAGE_E) model, which integrates an energy use nesting framework to capture both stable electricity supply and the use of factory-owned generators within the industrial sector. This energy nest is linked to capital factors, forming a capital-energy nesting structure that reflects energy usage across different economic activities. The model is applied to the case of Benin. We calibrate it using a 2019 Social Accounting Matrix (SAM) for the country. Two simulations are conducted: (i) investment in new electricity generation plants and distribution networks (short-run scenario reflecting the effects of the expenditure to build the electricity plants and networks), and (ii) an increase in the supply of stable electricity to industries (long-run scenario reflecting the effects of availability phase of the electricity). Results show that enhancing the supply of stable electricity enables the replacement of more expensive alternative energy sources, thereby promoting industrial growth. This, in turn, boosts demand for agricultural commodities as intermediate inputs, leading to increased agricultural production and overall economic growth. |
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- Conventional energy - Renewable energy - Agricultural policies - Domestic policy analysis - Economic development - Economic growth - Advances in quantitative methods - Partial and general equilibrium models - Africa (West) |
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Public Access  Paper (600.5 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions Although the paper is almost ready, the work is still in progress. And few adjustments maybe made. Therefore, we mark the paper as work in progress not yet for publication. This will be adjusted in few days. We also adjust slightly the title. Please do so on the page for us as we cannot do it directly. Best regards |
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Last Modified: 9/15/2023 2:05:45 PM
