Impacts of bioenergy on Thai agricultural sectors and households

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Atchara Patoomnakul
Apichart Daloonpate
Itthipong Mahathanaseth
Aerwadee Premashthira


This study was conducted to analyze the impact of bioenergy policy on the agricultural sector and household income-groups in Thailand using the Computable General Equilibrium model (CGE), and estimate its welfare effect based on the compensating variation. This paper develops a CGE model to deal with the issue of ethanol and biodiesel policy on Thailand. In the long run, the ethanol and biodiesel policies had a positive impact on real GDP. Moreover, both policies had a positive effect on the agricultural sector, and appreciation of the baht led to more trade balance deficit. The ethanol and biodiesel policies had a similar effect on the export value, especially agricultural and agro-industrial exports. However, the compensating variation associated with the policies differed between household income groups, and the rich income groups benefitted more from the biofuel policy than the poor ones.


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