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The GTAP-W model: accounting for water use in agriculture

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  • Alvaro Calzadilla
  • Katrin Rehdanz
  • Richard S.J. Tol

Abstract

Water and agriculture are intrinsically linked. Water is essential for crop production and agriculture is the largest consumer of freshwater resources. However, this link is commonly ignored by economic models mainly because water use is not reported in the national economic accounts. Few regions have markets for water. This paper describes the new version of GTAP-W, a multi-region, multi-sector computable general equilibrium model of the world economy. The new version of GTAP-W distinguishes between rainfed and irrigated agriculture and introduces water as an explicit factor of production for irrigated agriculture. Moreover, the new production structure accounts for substitution possibilities between irrigation and other primary factors. The new model has been used to study a variety of topics including: irrigation efficiency, sustainable water use, climate change and trade liberalization. This paper is a technical description of the data and features added to the standard GTAP model

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1745.

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Length: 40 pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:kie:kieliw:1745

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Keywords: Computable General Equilibrium; Irrigation; Water Policy;

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  1. Lee, Huey-Lin & Thomas Hertel & Brent Sohngen & Navin Ramankutty, 2005. "Towards An Integrated Land Use Database for Assessing the Potential for Greenhouse Gas Mitigation," GTAP Technical Papers 1900, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  2. Peterson, Deborah C. & Dwyer, Gavan & Appels, David & Fry, Jane, 2004. "Modelling Water Trade in the Southern Murray-Darling Basin," Staff Working Papers 31925, Productivity Commission.
  3. Wallace E. Tyner, 2010. "The integration of energy and agricultural markets," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 193-201, November.
  4. Horridge, Mark & Wittwer, Glyn, 2008. "SinoTERM, a multi-regional CGE model of China," China Economic Review, Elsevier, vol. 19(4), pages 628-634, December.
  5. Scott McDonald & Sherman Robinson & Karen Thierfelder, 2005. "A SAM Based Global CGE Model using GTAP Data January 2005," Working Papers 2005001, The University of Sheffield, Department of Economics, revised Jan 2005.
  6. Gohin, Alex & Hertel, Thomas, 2003. "A Note on the CES Functional Form and Its Use in the GTAP Model," GTAP Research Memoranda 1370, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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Cited by:
  1. Xiangzheng Deng & Fan Zhang & Zhan Wang & Xing Li & Tao Zhang, 2014. "An Extended Input Output Table Compiled for Analyzing Water Demand and Consumption at County Level in China," Sustainability, MDPI, Open Access Journal, vol. 6(6), pages 3301-3320, May.

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