Environmental Engineering Reference
To do this test, the following assumptions were used: if the PAD is less than 15%
the model is acceptable and we can start the second step, if PAD is more than
15%, the model specification must be improved before applying the second step.
In the second step, we apply the Positive Mathematical Programming according
to the Röhm and Dabbert (2003) approach in order to calibrate the model exactly
to the observed situation.
Tested scenario: The policy test case is the integrated assessment of a trade
liberalisation proposal by the so called G20 group of developing countries at the
current Doha Round of the World Trade Organisation (WTO) (G20 2005) .
This proposal was based on the reduction of tariffs for agricultural products and
abolition of export subsidises by the EU. This scenario was implemented at the
market level (i.e. inside the market model, CAPRI) and the generated prices from
CAPRI were used in FSSIM in order to analyse the impact of the price changes
due to the liberalisation proposal at farm level. The policy case is illustrated
with some economic indicators (farm income, production and premiums) and
environmental indicators (nitrate leaching and soil organic matter) (Van Ittersum
et al. 2008) (Fig. 5. 5 ).
Set Farm type and the
Farm Type 1
Farm Type 2
Set modules and
Automate choose of Risk Aversion Coefficient
Standard PMP approach
Röhm and Dabbert PMP approach
Kanellopoulos et al. approach
Set FSSIM scenario
WTO G20 proposal (2013)
Fig. 5.5 Modules and calibration procedure selected in the detailed application