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Efficiency improvements and water policy in the balearic islands: a general equilibrium approach

Author

Listed:
  • Dolores Tirado

    (Universidad de las Islas Baleares)

  • Carlos M. Gómez

    (Universidad de Alcalá)

  • Javier Lozano

    (Universidad de las Islas Baleares)

Abstract

We use an Applied General Equilibrium Model of the Balearic Islands to explore the impact of increasing the technical efficiency of water use in the tourism sector. We show that water efficiency measures do not reduce economic pressures on water ecosystems. Consequently water price increases and reductions in water withdrawals are needed as ancillary measures. This water policy package opens a menu of possible outcomes in terms of conservation of water resources and the production of market goods. We also provide information about distributional impacts that should be considered to determine the convenience of implementing water saving programs.

Suggested Citation

  • Dolores Tirado & Carlos M. Gómez & Javier Lozano, 2006. "Efficiency improvements and water policy in the balearic islands: a general equilibrium approach," Investigaciones Economicas, Fundación SEPI, vol. 30(3), pages 441-463, September.
  • Handle: RePEc:iec:inveco:v:30:y:2006:i:3:p:441-463
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    Citations

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    Cited by:

    1. Dinar, Ariel, 2012. "Economy-wide implications of direct and indirect policy interventions in the water sector: lessons from recent work and future research needs," Policy Research Working Paper Series 6068, The World Bank.
    2. Gomez Gomez, Carlos Mario & Perez Blanco, Carlos Dionisio, 2013. "Myths and Maths of Water Efficiency: An Analytical Framework to Assess the Real Outcome of Water Saving Technologies in Irrigation," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158690, Agricultural Economics Society.
    3. Perez Blanco, Carlos Dionisio & Gomez Gomez, Carlos Mario, 2012. "Development of private insurance schemes as a means to reduce water overexploitation during drought events. A case study in Campo de Cartagena (Segura River Basin, Spain)," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122453, European Association of Agricultural Economists.
    4. Carlos Dionisio Pérez Blanco & Carlos Mario Gómez Gómez, 2014. "An Integrated Risk Assessment Model for the Implementation of Drought Insurance Markets in Spain," Working Papers 2014.62, Fondazione Eni Enrico Mattei.
    5. Luckmann, Jonas & Grethe, Harald & McDonald, Scott, 2015. "When Water Saving Limits Recycling: Modeling Economy-wide Linkages of Wastewater Use," 2015 Conference, August 9-14, 2015, Milan, Italy 212161, International Association of Agricultural Economists.
    6. Gomez, Carlos Mario & Gutierrez, Carlos, 2011. "Enhancing Irrigation Efficiency but Increasing Water Use: The Jevons' Paradox," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114622, European Association of Agricultural Economists.
    7. Luckmann, J. & Siddig, K. & Flaig, D. & Grethe, H., 2013. "A general equilibrium approach to model water scarcity in Israel," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 48, March.
    8. Luckmann, Jonas & Grethe, Harald & McDonald, Scott & Orlov, Anton & Siddig, Khalid, 2013. "A general equilibrium approach to modelling multiple types and uses of water," Conference papers 332401, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Luckmann, Jonas & Grethe, Harald & McDonald, Scott, 2015. "When Water Saving Limits Recycling: Modeling Cascading Water Use in a Computable General Equilibrium Framework," Conference papers 332622, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Cakmak, Erol H. & Dudu, Hasan & Saracoglu, Sirin & Diao, Xinshen & Roe, Terry & Tsur, Yacov, 2008. "Macro-Micro Feedback Links Of Irrigation Water Management In Turkey," Policy Research Working Paper Series 4781, The World Bank.
    11. Luckmann, Jonas & Siddig, Khalid H.A. & Flaig, Dorothee & Grethe, Harald, 2012. "Mitigating Water Scarcity In Israel – A Computable General Equilibrium Analysis," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 133942, German Association of Agricultural Economists (GEWISOLA).
    12. Adam Loch & David Adamson, 2015. "Drought and the rebound effect: a Murray–Darling Basin example," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 79(3), pages 1429-1449, December.
    13. Pérez Blanco, Carlos Dionisio & Gómez Gómez, Carlos Mario & Garrido Yserte, Rubén, 2010. "Cambio estructural regional y agua: Escasez, dependencia e impactos sobre el tejido económico. El caso de Andalucía/Structural Change and Water: Scarcity, Dependence and Impacts on the Economy. The Ca," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 28, pages 423-446, Agosto.
    14. Rashid Hassan & James Thurlow, 2011. "Macro–micro feedback links of water management in South Africa: CGE analyses of selected policy regimes," Agricultural Economics, International Association of Agricultural Economists, vol. 42(2), pages 235-247, March.
    15. Luckmann, Jonas & Ihle, Rico & Kleinwechter, Ulrich & Grethe, Harald, 2015. "The Effects of Vietnamese Export Policies on the World Market Integration of Domestic Rice Markets," 2015 Conference, August 9-14, 2015, Milan, Italy 212159, International Association of Agricultural Economists.
    16. van Nieuwkoop, Renger, 2011. "Fit2GTAP: Replacing country data in the GTAP data base," Conference papers 332142, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Pérez Blanco, Carlos Dionisio & Gómez Gómez, Carlos Mario & Del Villar García, Alberto, 2011. "El riesgo de disponibilidad de agua en la agricultura: una aplicación a las cuencas del Guadalquivir y del Segura/Water Availability Risk in Agriculture: An Application to Guadalquivir and Segura Rive," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 333-358, Abril.
    18. Jonas Luckmann & Khalid Siddig & Harald Grethe, 2012. "Modeling sectorally differentiated water prices and policies: an application to the Israeli water economy," EcoMod2012 4452, EcoMod.

    More about this item

    Keywords

    Applied general equilibrium; water economics.;

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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