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Assessing the Macroeconomic Impact of Water Supply Restrictions Through an Input–Output Analysis

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  • Jaume González

Abstract

Water supply restrictions due to droughts generate significant costs to many economic agents. Although these costs are difficult to assess, this article presents a methodology to quantify, from a general equilibrium perspective, the macroeconomic impact of water supply restrictions through the estimation of aggregate production functions that include water consumption by sectors. Simulations with an Input–output model suggest a loss of 0.34% of GDP in the case of modest restrictions on the water supply and 2.8% in the case of more extreme restrictions for 2005 for the Catalonia region in Spain. Copyright Springer Science+Business Media B.V. 2011

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  • Jaume González, 2011. "Assessing the Macroeconomic Impact of Water Supply Restrictions Through an Input–Output Analysis," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(9), pages 2335-2347, July.
    • Handle: RePEc:spr:waterr:v:25:y:2011:i:9:p:2335-2347
    DOI: 10.1007/s11269-011-9811-4
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    References listed on IDEAS

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    4. Maria Berrittella & Katrin Rehdanz & Arjen Y. Hoekstra & Roberto Roson & Richard S.J. Tol, 2006. "The Economic Impact Of Restricted Water Supply: A Computable General Equilibrium Analysis," Working Papers FNU-93, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2006.
    5. Yong Wang & Hong-lang Xiao & Rui-fang Wang, 2009. "Water Scarcity and Water Use in Economic Systems in Zhangye City, Northwestern China," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(13), pages 2655-2668, October.
    6. Alvaro Calzadilla & Katrin Rehdanz & Richard S.J. Tol, 2008. "The Eonomic Impact Of More Sustainable Water Use In Agriculture: A Computable General Equilibrium Analysis," Working Papers FNU-169, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2008.
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    Cited by:

    1. Ortuzar, Iban & Serrano, Ana & Xabadia, Àngels, 2023. "Macroeconomic impacts of water allocation under droughts. Accounting for global supply chains in a multiregional context," Ecological Economics, Elsevier, vol. 211(C).

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