Impacts of water reallocation: A combined computable general equilibrium and recreation demand model approach

Seung, Chang K.; Harris, Thomas R.; Englin, Jeffrey; Netusil, Noelwah R.

doi:10.1007/s001689900011

Cited by 102 publications

(54 citation statements)

References 12 publications

(16 reference statements)

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“…For the Arkansas River Basin, Goodman [2000] shows that temporary water transfers are less costly than building new dams. Seung et al [2000] look at water reallocation in Nevada. Diao and Roe [2003] study the effect of trade liberalization on water policy in Morocco.…”

Section: Previous Studiesmentioning

confidence: 99%

Triple dividends of water consumption charges in South Africa

Letsoalo

Blignaut

Wet

et al. 2007

Water Resources Research

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[1] The South African government is exploring ways to address water scarcity problems by introducing a water resource management charge on the quantity of water used in sectors such as irrigated agriculture, mining, and forestry. It is expected that a more efficient water allocation, lower use, and a positive impact on poverty can be achieved. This paper reports on the validity of these claims by applying a computable general equilibrium model to analyze the triple dividend of water consumption charges in South Africa: reduced water use, more rapid economic growth, and a more equal income distribution. It is shown that an appropriate budget-neutral combination of water charges, particularly on irrigated agriculture and coal mining, and reduced indirect taxes, particularly on food, would yield triple dividends, that is, less water use, more growth, and less poverty.

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Section: Previous Studiesmentioning

confidence: 99%

Triple dividends of water consumption charges in South Africa

Letsoalo

Blignaut

Wet

et al. 2007

Water Resources Research

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“…One is a top-down approach, which places more emphasis on the impact on the macro level or regional economy. Computable general equilibrium (CGE) models [6][7][8][9][10][11][12][13][14][15][16] are frequently used to simulate the operations of market economy and economic consequences in terms of production, trade, growth, water use and welfare caused by policy change by specifying the behavior of relevant "agents" (e.g., producers, households, government) as they interact across markets [17]. However, one limitation of the top-down approach is that spatial difference of water availability, crop peculiarities and historical practices that vary between regions are not included [18].…”

Section: Introductionmentioning

confidence: 99%

Economic Impacts of Total Water Use Control in the Heihe River Basin in Northwestern China—An Integrated CGE-BEM Modeling Approach

Wang

Shi

et al. 2015

Sustainability

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This paper develops an integrated modeling approach combined with a top-down dynamic computable general equilibrium (CGE) model and a bottom-up bio-economic model (BEM) to study the economic impact of a total water use control policy in the Heihe river basin, northwestern China. The integrated CGE-BEM model is regionally disaggregated with a variety of crops and livestock, and includes the responses of farmers and consequent feedback effects in the regional economic system. The results show that under the total water use control scenario, the water use structure is changed and water use efficiency is improved. The total water use control policy has limited negative impact on the regional economic growth with only a slightly lower growth rate of 13.38% compared with a growth rate of 14% by 2020 under a business as usual water use scenario. However, the total water use control policy has significant negative impacts on several sectors, especially agriculture and food processing. It is expected cropping systems will change through a replacement of water-intensive crops with water-efficient crops. Farmers' incomes will decrease by 3.14%. In order to alleviate farmers' income loss and deal with water use conflicts across different sectors and regions, the promotion of migration of surplus labor OPEN ACCESSSustainability 2015, 7 3461 from agriculture to non-agricultural sectors and the improvement of water use efficiency in agriculture are needed.

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“…Seung et al found that the SAM model overestimated the agricultural sector's outputs and factor income by comparing it with the social accounting matrix (SAM) model in researching agricultural transfer of water [8]. Furthermore, Seung et al proposed a dynamic CGE model consisting of three agricultural sectors and five non-agricultural sectors to investigate the economic impacts of water being transfered from agriculture to wetlands [9,10]. A recent extension was to integrate a CGE model by linking it with a water management model, which allowed for a finer depiction of water distributions within irrigated agriculture.…”

Section: Introductionmentioning

confidence: 99%

Discharge Fee Policy Analysis: A Computable General Equilibrium (CGE) Model of Water Resources and Water Environments

Fang

Wang

et al. 2016

Water

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Abstract:To alleviate increasingly serious water pollution and shortages in developing countries, various kinds of policies have been implemented by local governments. It is vital to quantify and evaluate the performance and potential economic impacts of these policies. This study develops a Computable General Equilibrium (CGE) model to simulate the regional economic and environmental effects of discharge fees. Firstly, water resources and water environment factors are separated from the input and output sources of the National Economic Production Department. Secondly, an extended Social Accounting Matrix (SAM) of Jiangsu province is developed to simulate various scenarios. By changing values of the discharge fees (increased by 50%, 100% and 150%), three scenarios are simulated to examine their influence on the overall economy and each industry. The simulation results show that an increased fee will have a negative impact on Gross Domestic Product (GDP). However, waste water may be effectively controlled. Also, this study demonstrates that along with the economic costs, the increase of the discharge fee will lead to the upgrading of industrial structures from a situation of heavy pollution to one of light pollution which is beneficial to the sustainable development of the economy and the protection of the environment.

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Impacts of water reallocation: A combined computable general equilibrium and recreation demand model approach

Cited by 102 publications

References 12 publications

Triple dividends of water consumption charges in South Africa

Triple dividends of water consumption charges in South Africa

Economic Impacts of Total Water Use Control in the Heihe River Basin in Northwestern China—An Integrated CGE-BEM Modeling Approach

Discharge Fee Policy Analysis: A Computable General Equilibrium (CGE) Model of Water Resources and Water Environments

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