Calculation of optimal tax rate of water resources and analysis of social welfare based on CGE model: a case study in Hebei Province, China

Tian, Guiliang; Wu, Zheng; HU, Yucan

doi:10.2166/wp.2020.118

Cited by 20 publications

(11 citation statements)

References 7 publications

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“…At the second level, the energy composite and the capital‐labour‐water composite are combined by a CES function, and the elasticity value is set at 0.4 (Su et al, 2019). At the top level, the intermediate inputs and the energy‐capital‐labour‐water composite constitute activity output with a 0.3 elasticity value (Liang, 2013). In addition, a constant elasticity of transformation (CET) function is used to determine supply composition between domestic demands and exported goods, and domestic outputs and imported goods constitute the total demand, via the Armington CES function.…”

Section: Methodsmentioning

confidence: 99%

Sustaining environmental flows in water‐deficient rivers via inter‐basin hydropower transfer

Gao

Liu

Sun

et al. 2021

Hydrological Processes

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In water-deficient rivers, environmental flows (e-flows) are usually sustained via interbasin water transfer projects from water-sufficient rivers, but these projects incur tremendous costs and may lead to many negative ecological effects, such as ecological invasion. This research proposed to transfer hydropower instead of water from watersufficient rivers, because hydropower could substitute for water to promote economic development and reduce water withdrawal from water-deficient rivers (conserved water). In addition, based on the analysis of eco-hydrological processes, the flow regime alteration plays an important role in restoring riverine ecosystem. With the goal of minimum flow regime alternation, we set up two scenarios to distribute the annual conserved water, and determined the optimal amount of transferred hydropower and the optimal use of conserved water, which could effectively sustain the e-flows. Accordingly, this paper established a computable general equilibrium model to analyse the substitution of hydropower for water in a water-deficient river basin, and determined the water withdrawal volume that could be reduced. We adopted a range-ofvariability approach to measure the degree of flow regime alteration, and optimized the flow regime management scheme. The Luanhe River Basin was adopted as a study case. The results showed that: the water-hydropower equivalent decreased as the transferred hydropower into the Luanhe River Basin increased; a transferred hydropower amount of 22.46 kWh/s, equivalent to 18.30 m 3 /s conserved water, was optimal for the river basin; the conserved water should be distributed to the Luanhe River in the proportions of 0.55:0.1:0.35 during the wet, normal and dry seasons, respectively, which is the optimal scheme to sustain the hydrological processes of the river.

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Section: Methodsmentioning

confidence: 99%

Sustaining environmental flows in water‐deficient rivers via inter‐basin hydropower transfer

Gao

Liu

Sun

et al. 2021

Hydrological Processes

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“…Reviewing the existing literature, most of the current studies on the effect of water resources tax policy are short-term or static, and lack of studies on the overall and lasting effects, such as using the CGE model to study the optimal tax rate on water resources [30], which has not yet formed the internal logical structure of the impact of water resources tax policies on economic growth. On the other hand, although the theoretical basis of the DSGE model can solve the above problems, there is a lack of a DSGE model on comprehensive water resources, and the available reference comes from the research results of the DSGE model on carbon taxation.…”

Section: Introductionmentioning

confidence: 99%

Can the water resources tax policy effectively stimulate the water saving behavior of social water users? A DSGE model embedded in water resources tax

Tian

Han

et al. 2023

PLoS ONE

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Whether the implementation of the water resources tax policy can stimulate the water-saving behavior of social water users is one of the important criteria for evaluating the implementation effect of the tax reform policy. Taking Hebei Province, the first tax reform pilot in China, as an example. A dynamic stochastic general equilibrium model (DSGE) with embedded water resources tax is constructed to simulate the persistent impact of water resources tax on water-saving objectives. The research shows that: (1) Water resources tax can effectively achieve the goal of water-saving and improve the utilization efficiency of water resources. (2) Levying water resources tax helps to improve the water-saving awareness of enterprises and residents. It can also encourage enterprises to optimize production structures. (3) Rational and efficient use of special water resources protection funds is the basis for ensuring the effective implementation of water resources tax. It can also improve the recycling capacity of water resources. The results show that the government should speed up formulating a reasonable water resources tax rate and accelerate the construction of water resources tax protection measures. To ensure the relatively steady state of water resources utilization and protection, and achieve the dual goals of sustainable economic development and sustainable use of water resources. The research results of this paper reveal the internal logic of the comprehensive impact of water resources tax on the economy and society and provide an important basis for the national promotion of tax reform policy.

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“…The construction of a water resource tax policy is of great significance to further improve the WRUE and promote the management process of water resources in Germany, the UK and other European countries (Thomas & Zaporozhets, 2017). This framework has not previously been applied in China within the realm of water resource management and may prove a useful tool in planning for better management and, ultimately, future resilience (Tian et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

The effectiveness of a water resource tax policy in improving water-use efficiency: a quasi-natural experiment-based approach

Zhang

Sen

et al. 2022

Water Policy

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Comprehensively improving the efficiency of water resource utilization is not only an urgent need to resolve the prominent contradiction between water supply and water demand but also an inevitable requirement to promote the harmonious coexistence between humans and nature. The compulsory water resource tax is considered to be a powerful tool for resolving the worldwide water crisis and improving water resource utilization efficiency (WRUE). Based on a quasi-natural experiment of water resource tax policy in China, this study used panel data for 30 provinces (municipalities) from 2011 to 2019 to evaluate the impact of water resource tax policies on WRUE through a multistage difference-in-difference model. The results showed that the water resource policy can effectively improve the utilization efficiency of water resources by optimizing the allocation of resources. In addition, the analysis of the spatial heterogeneity showed that the policy of the water resource tax has a stronger lifting effect on improving water resource-use efficiency in Eastern China than that in the central and western regions. This research provided insights into China's water policies that can be used to better manage natural resources.

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Calculation of optimal tax rate of water resources and analysis of social welfare based on CGE model: a case study in Hebei Province, China

Cited by 20 publications

References 7 publications

Sustaining environmental flows in water‐deficient rivers via inter‐basin hydropower transfer

Sustaining environmental flows in water‐deficient rivers via inter‐basin hydropower transfer

Can the water resources tax policy effectively stimulate the water saving behavior of social water users? A DSGE model embedded in water resources tax

The effectiveness of a water resource tax policy in improving water-use efficiency: a quasi-natural experiment-based approach

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