S2
The Environmental Economic Assessment of the Animal Protein Production and
Consumption Chain and the Alternative Options.
MSc Xueqin Zhu ( xueqin.zhu@alg.shhk.wau )
March 2000 – March 2004
Supervisors: Prof. E. van Ierland and Dr. J. Wesseler
Introduction
This study focuses on the description of the economic and environmental aspects
relevant to the protein chains. It will investigate the effects on the economy and
environment of the shift from animal protein to plant protein foods by general
equilibrium modeling.
Conceptual Framework
The whole chain consists of several economic activities such as agriculture
production, processing, transport, waste treatment and consumption. The
environmental impacts occur at the different input and output levels of the chain.
Namely:
1) Resource uses: land, water and other inputs use occur in the whole chain.
2) Emissions from the economic activities of the chain to the environment.
Products
Products
Households (Consumption)
in EU
goods
goods
Imports
factors
Exports
intermediate
inputs
Industries (Production)
in ROW
products
intermediate
inputs
factors
products
Industries (Production)
in EU
Households (Consumption)
in ROW
Figure The commodity flows of the two-region AGE model
The theoretical framework for economic modeling has been determined (see figure).
A simplified two-region environmental-economic model (applied general equilibrium
model) has been developed, which includes both the economic and environmental
issues (e.g. air quality). The model is applied to a numerical example, showing the
mechanism of how environment and production interact with each other. The
modeling shows that applied general equilibrium approach can capture some
economic and environmental implications in the light of a partial transition from pork
to NPFs.
Future approach
The environmental-economic AGE model will be expand to include more details of
the pork and NPFs chain. The expansion includes the different environmental issues
such as water use, water pollution according to the environmental analysis. The model
will be calibrated by the empirical data. Some scenarios will be developed, to which
the model will be applied. The results of the scenario studies by the model can shed
some light on the consequences of a shift from animal protein (e.g. pork) to plant
protein (e.g. NPFs) on the economy and the environment of European Union and the
rest of the world.
Publications
1. Xueqin Zhu & Ekko van Ierland, (2001) Effects of the Enlargement of EU on
Trade and the Environment, Feem working paper (NOTA DILAVORO 54.2001)