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.
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Find related papers by 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