Geography Reference
In-Depth Information
Fig. 2.1
Framework of feeding LUCD model results into RCMs simulation
vegetation change suitability using the agent-based simulation technology. This
module identifies whether or not the theoretical land use change demand and the
possible vegetation change estimated by the economic module and the vegetation
change module can be realized. The output of this module, land use change, is the
underlying surfaces that are needed by RCMs. By embedding the LUCD in RCMs,
an iterative simulation system of land use change and climate change is con-
structed (Fig. 2.1 ).
2.1.1.2 Economic Module
The economic module should provide a comprehensive macroeconomic frame-
work to describe market-oriented economies. CGE model is suggested to be
appropriate for such a macroeconomic framework. For convenient application, the
way that induces land into the economic module under a CGE modeling frame-
work is proposed as well in this study (Fig. 2.2 ). Land is one of the three primary
factors input in commodity production. And there are five components: producers,
households, government, trade, and markets in CGE model. Producers decide
demand of inputs including primary factors of land, labor, and capital, and supply
of outputs (commodities) to maximize their profits. Households decide demand of
commodities and supply of their endowments of labor and capital to maximize
their economic utility. Government imposes taxes and expends them in public
consumption and savings. The savings of government and households transform
into investment according to reserve requirements, which is also an important
component in demand. And we employ the small-country assumption that the
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