An Algorithm to Simulate the Equilibrium of Land Use Structures - Advanced Research on Computer Education, Simulation and Modeling - page 323

land policy parameters, and the total economic output, employment rate and energy
consumption are used as characteristic variables that indicate industrial development of
land-consumption sectors [2, 3]. Analysis of the influence of land policies can be used
to make corresponding baseline hypotheses and calculations according to the current
amount of land use and land use characteristics. The analysis is based on results of
government investments, technical progress of sectors consuming land, structural
changes in product consumption and the impacts of macroeconomic policies on the
economic variables are then included in the equilibrium analysis section of land area
supply and demand [4, 5]. This section estimates and quantifies product demand,
economic development and land use efficiency.
Land plays a key role in the CGELUC model. On one hand, land is involved in
production activities and is traded in the factor market as a commodity. Alternatively,
land uses change with changing human activities, such as farmland returning to forest
or grassland, reclaiming wasteland and clearing forest for farmland expansion. Change
in land property is generally called land use conversion [6]. The computer-based
CGELUC model is constructed based on CGE theory, the areas of five land use types
and the connection between economic development and land use structure of devel-
oped, economic forest and grassland areas. It consists of production, demand, price,
trade, income distribution and macroeconomic closure modules. On the other hand,
agricultural, forest and livestock products produced directly on the land are land output
products, while other products are non-land output products. The difference between
the two is that non-land output products consider the land as an input factor, and land
output products consider the land as a commodity. Here, the module equations asso-
ciated with land use structure are highlighted, and other equations are similar to the
equation of the general CGE model.
2 The SAM
The Social Accounting Matrix (SAM) dataset serves as the basis for running the
CGELUC model, the construction of which facilitates parameter estimation of the
model. The structural change in regional land use is analyzed by expanding the tradi-
tional SAM dataset and adding factors and commodities of several land use types
balanced among sectors and regions in the CGELUC model. The SAM dataset com-
plements and expands the input-output tables because it indicates interdependence of
production activities, income distribution factors and income distribution of different
sectors. It also determines expenditure patterns of different sectors.
The economic meaning of each land factor in the SAM table is briefly explained
below. Macroscopic SAM in the CGELUC model generally describes the economic
cycle of production, distribution and consumption in the economic system starting from
commodities.
2.1 Preparation of SAM Parameters
The prices of products and factors are generally set to the same unit since the transac-
tion values involved in the SAM dataset of the CGELUC model are expressed as val-
ues. Most of the parameters in the model can be calculated by incorporating equations