GTAP Resources: Resource Display
GTAP Resource #7513 |
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"Economic impact of restoring rangelands: A CGE approach" by Abdul-Jalil, Sawsan and Jonas Luckmann Abstract This study evaluates the potential economy-wide impacts of restoring Jordan’s degraded rangelands, a critical component of the country's agricultural economy, ecological resilience, and rural livelihoods. Jordan’s rangelands have faced extensive degradation due to climate change, overgrazing, land-use change, and urban encroachment, severely reducing the availability of natural pastures essential for the small ruminant sector. In addition to their economic value, healthy rangelands also provide recreational and ecotourism benefits. However, existing economic assessments often overlook these broader environmental services and focus narrowly on regional or sector-specific outcomes. To address this gap, we adopt a general equilibrium framework, adapting the STAGE 2 model to evaluate the national-level impacts of micro water harvesting (MWH), a cost-effective and scalable restoration technique trialed in Jordan. The model incorporates an extended supply and demand nesting structure, allowing substitution between imported feed and natural fodder, and integrates non-market values such as recreation into household utility. The model is calibrated using an extended Social Accounting Matrix (SAM) that includes a dedicated rangelands sector, valuing its outputs based on environmental accounting principles. Simulation scenarios are based on experimental data from ICARDA, estimating that 21% of Jordan’s rangelands are suitable for MWH. Results are expected to show that rangeland restoration could reduce livestock production costs, increase small ruminant output, and improve rural household welfare through increased labor demand. Additionally, reduced reliance on subsidized feed could ease fiscal burdens, while incorporating recreational values enhances the measurement of welfare gains. |
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- Climate change policy - Ecosystem services and biodiversity - Environmental policies - Land use - Model extension/development - Partial and general equilibrium models - Middle East |
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Last Modified: 9/15/2023 2:05:45 PM