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Impact Analysis of Changes in The Price of Water Resources in China and Beijing

Author

Listed:
  • Masaru Ichihashi

    (Graduate School for International Development and Cooperation, Hiroshima University)

  • Shinji Kaneko

    (Graduate School for International Development and Cooperation, Hiroshima University)

Abstract

This paper aims to analyze the impact of changes in resource prices on intra-region goods supply and on extra-region changes in prices, as well as possible impacts on the demand side, using China and Beijing as examples for analysis. Results of the analysis with Input-Output model and CGE model demonstrate that changes in the price of water supply do not have as significant an impact as is the case with energy goods such as electrical power or oil and mining. Also, another result with International IO model shows that an increase in the price of water resources in China would first induce changes in the prices of some domestic goods (education and research, chemical fertilizers, etc.); the effect on other countries would be relatively large in countries including Malaysia, Thailand, Singapore, and South Korea, and in the industries of flour milling, heavy electrical equipment, knitting, non-ferrous metals, and apparel. However, all of these impacts would be minimal.

Suggested Citation

  • Masaru Ichihashi & Shinji Kaneko, 2011. "Impact Analysis of Changes in The Price of Water Resources in China and Beijing," IDEC DP2 Series 1-5, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    • Handle: RePEc:hir:idecdp:1-5
    as

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    File URL: http://ir.lib.hiroshima-u.ac.jp/files/public/31720/2014101618240197972/IDEC-DP2_01-5.pdf
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    References listed on IDEAS

    as
    1. Graham Pyatt, 1985. "Commodity Balances And National Accounts: A Sam Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 31(2), pages 155-169, June.
    2. Pyatt, Graham, 1985. "Commodity Balances and National Accounts: A SAM Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 31(2), pages 155-169, June.
    3. Hong Bae Kim & Sang Youp Jin & Kap Sik Yun, 2001. "Impact Analysis of a Water Quality Enhancing Policy: A Simple Input-Output Approach," Regional Studies, Taylor & Francis Journals, vol. 35(2), pages 103-111.
    4. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Water resources; energy price rising effect; International Input-Output; CGE model;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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