Table 4 Definitions of variables of model
Endogenous variables | |
\( {D}_y^M \) | Market demand for final output (y = CPO) |
\( {D}_y^{\mathrm{EU}},{D}_y^{\mathrm{ROW}} \) | Demand for y from EU and Rest of the World (ROW), respectively. |
\( {D}_y^{\mathrm{Do} m},{S}_y^{\mathrm{Do} m} \) | Domestic demand and domestic supply for y, respectively. |
D i , S i | Derived demand for and supply of ith primary input |
\( {P}_y^M \) | Market price of y |
\( {P}_y^{\mathrm{EU}},{P}_y^{\mathrm{ROW}} \) | Export price of y to EU and rest of the world (ROW) |
D frst, D ptls | Demand for forest and peatland conversion, respectively |
Parameters | |
\( {\varepsilon}_y^{\mathrm{Dom}} \) | Own price elasticity of domestic demand for y. |
\( {\varepsilon}_y^{\mathrm{EU}},{\varepsilon}_y^{\mathrm{ROW}}, \) | Export price elasticity of EU and rest of the world (ROW) demand for y. |
σ ij | Allen substitution elasticity between input i and j |
\( {\alpha}_y^{\mathrm{EU}},\ {\alpha}_y^{\mathrm{ROW}} \) | Share export demands from of EU and ROW for y in total market demand |
\( {\alpha}_y^{\mathrm{Dom}} \) | Share of domestic demand for y in total market demand |
c i | The cost share of ith primary input with respect to total cost of producing y |
v i | supply price elasticity of ith input |
γ, μ | Forest and peatland conversion elasticities with respect to total land demand, respectively. |
Exogenous variables (policy shocks) | |
\( {U}_y^{\mathrm{Dom}} \) | Price equivalent shift factor in domestic demand schedules for y |
\( {U}_y^{\mathrm{EU}},{U}_y^{\mathrm{ROW}} \) | Price equivalent shift factors in EU and ROW export demand schedules for y |