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Effect of Land Use Restrictions on the Economy of Alberta: A Computable General Equilibrium Analysis

Citation

Alavalapati, Janaki; White, Bill; Jagger, Pamela; & Wellstead, Adam (1996). Effect of Land Use Restrictions on the Economy of Alberta: A Computable General Equilibrium Analysis. Canadian Journal of Regional Science, 19(3), 349-65.

Abstract

This paper investigates the socio-economic impacts of hypothetical reductions in the use of land in the agriculture, forestry, and energy sectors in the province of Alberta. A five sector computable general equilibrium is developed to simulate the impacts of land use reductions. Simulations are conducted under two scenarios. First, wages are assumed to be rigid in the economy. Second, wages are assumed to be responsive to changes in the demand for labour. Results indicate that the negative impacts of land use reduction are higher when wages are rigid than those of wage flexible scenario. If wages are flexible, a contraction in a trading sector is shown to cause an expansion in other trading sectors. However, adjustment in the non-trading sector depends on relative magnitudes of contraction and expansion of trading sectors.

URL

http://www.cjrs-rcsr.org/archives/19-3/Alavalapati-White-Jagger-Wellstead.pdf

Reference Type

Journal Article

Journal Title

Canadian Journal of Regional Science

Author(s)

Alavalapati, Janaki
White, Bill
Jagger, Pamela
Wellstead, Adam

Year Published

1996

Volume Number

19

Issue Number

3

Pages

349-65

Reference ID

4651