Water price and water reallocation in Andalusia. A computable general equilibrium approach
AbstractThe objective of this work is to analyze the effects that an increase in the price of the water delivered to the agriculture sector to promote the conservation of this resource would have on the efficiency of the consumption of water and the possible reallocation of water to the remaining productive sectors. The analysis is motivated by the fact that the agriculture consumes a disproportionately large amount of water at very low prices. The methodology that will be used to explore the implications on the economy will be a computable general equilibrium model (CGE), previously designed for an analysis of the direct taxes of the Andalusian economy (Cardenete and Sancho, 2003), but now enhanced and extended to include emissions of pollutants and the introduction of environmental taxes (André, Cardenete and Velázquez, 2005). This model has been further modified to introduce the variations in the water price that we will try to analyze by means of a tariff applied on the production structure. The main conclusion drawn indicates that, although the tax policy applied does not correspond to a significant water saving in the above-mentioned sector, a reallocation of this resource is achieved which seems to generate a more efficient and more rational behavior from a production point of view.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 07.04.
Length: 24 pages
Date of creation: Mar 2007
Date of revision:
environmental tax reforms; computable general equilibrium; water price;
Find related papers by JEL classification:
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
This paper has been announced in the following NEP Reports:
- NEP-AGR-2007-03-10 (Agricultural Economics)
- NEP-ALL-2007-03-10 (All new papers)
- NEP-CMP-2007-03-10 (Computational Economics)
- NEP-ENV-2007-03-10 (Environmental Economics)
- NEP-PBE-2007-03-10 (Public Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Doppler, Werner & Salman, Amer Z. & Al-Karablieh, Emad K. & Wolff, Heinz-Peter, 2002. "The impact of water price strategies on the allocation of irrigation water: the case of the Jordan Valley," Agricultural Water Management, Elsevier, Elsevier, vol. 55(3), pages 171-182, June.
- Francisco J. AndrÃ© & M. Alejandro Cardenete, 2004.
"Performing an Environmental Tax Reform in a Regional Economy: A Computable General Equilibrium Approach,"
Computing in Economics and Finance 2004, Society for Computational Economics
115, Society for Computational Economics.
- Francisco André & M. Cardenete & Esther Velázquez, 2005. "Performing an environmental tax reform in a regional economy. A computable general equilibrium approach," The Annals of Regional Science, Springer, Springer, vol. 39(2), pages 375-392, 06.
- Francisco J. André & M. Alejandro Cardenete & Esther Velázquez Alonso, 2004. "Performing an Environmental Tax Reform in a Regional Economy. A Computable General Equilibrium Approach," Economic Working Papers at Centro de Estudios Andaluces, Centro de Estudios Andaluces E2004/04, Centro de Estudios Andaluces.
- Geoffrey Hewings & Chokri Dridi & Joaquim Guilhoto, 2005.
"Impacts of Reallocation of Resource Constraints on the Northeast Economy of Brazil,"
ERSA conference papers
ersa05p14, European Regional Science Association.
- Hewings, Geoffrey J.D. & Dridi, Chokri & Guilhoto, Joaquim J.M., 2005. "Impacts of reallocation of resource constraints on the northeast economy of Brazil," MPRA Paper 38210, University Library of Munich, Germany.
- Duarte, Rosa & Sanchez-Choliz, Julio & Bielsa, Jorge, 2002. "Water use in the Spanish economy: an input-output approach," Ecological Economics, Elsevier, Elsevier, vol. 43(1), pages 71-85, November.
- Noelwah R. Netusil & Thomas R. Harris & Chang K. Seung & Jeffrey E. Englin, 2000. "Impacts of water reallocation: A combined computable general equilibrium and recreation demand model approach," The Annals of Regional Science, Springer, Springer, vol. 34(4), pages 473-487.
- Seung, Chang K. & Englin, Jeffrey E. & Harris, Thomas R., 1997. "Application of Computable General Equilibrium Model to Derive Impacts of Surface Water Reallocation Policy," 1997 Annual Meeting, July 13-16, 1997, Reno\Sparks, Nevada, Western Agricultural Economics Association 35841, Western Agricultural Economics Association.
- Dawkins, Christina & Srinivasan, T.N. & Whalley, John, 2001. "Calibration," Handbook of Econometrics, Elsevier, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 58, pages 3653-3703 Elsevier.
- Dixon, Peter B., 1990. "A general equilibrium approach to public utility pricing: determining prices for a water authority," Journal of Policy Modeling, Elsevier, Elsevier, vol. 12(4), pages 745-767.
- Erik Dietzenbacher & Esther Velazquez, 2007. "Analysing Andalusian Virtual Water Trade in an Input-Output Framework," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 41(2), pages 185-196.
- Dinar, A. & Subramanian, A., 1997. "Water Pricing Experiences," Papers, World Bank - Technical Papers 386, World Bank - Technical Papers.
- Decaluwe, B. & Patry, A. & Savard, L., 1999.
"`When Water Is No Longer Heaven Sent: Comparative Pricing Analysis in an AGE Model,"
Papers, Laval - Recherche en Politique Economique
9905, Laval - Recherche en Politique Economique.
- Decaluwé, B. & Patry, A. & Savard, L., 1999. "When Water is no Longer Heaven Sent: Comparative Pricing Analysis in an AGE Model," Cahiers de recherche, UniversitÃ© Laval - DÃ©partement d'Ã©conomique 9908, Université Laval - Département d'économique.
- M. Alejandro Cardenete & Ferran Sancho, 2002. "An Applied General Equilibrium Model to Assess the Impact of National Tax Changes on a Regional Economy," Economic Working Papers at Centro de Estudios Andaluces, Centro de Estudios Andaluces E2002/13, Centro de Estudios Andaluces.
- Berbel, J. & Gomez-Limon, J. A., 2000. "The impact of water-pricing policy in Spain: an analysis of three irrigated areas," Agricultural Water Management, Elsevier, Elsevier, vol. 43(2), pages 219-238, March.
- 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,
International Association of Agricultural Economists, vol. 42(2), pages 235-247, 03.
- Hassan, R. & Thurlow, J. & Roe, T. & Diao, X. & Chumi., S. & Tsur, Y., 2008. "Macro-micro feedback links of water management in South Africa : CGE analyses of selected policy regimes," Policy Research Working Paper Series 4768, The World Bank.
- Llop Llop, Maria & Ponce Alifonso, Xavier, 2011. "A never-ending debate: Demand versus supply water policies. A CGE analysis for Catalonia," Working Papers, Universitat Rovira i Virgili, Department of Economics 2072/152139, Universitat Rovira i Virgili, Department of Economics.
- Cámara Sánchez, Ángeles & Cardenete Flores, M.Alejandro & Monrobel Alcántara, José Ramón, 2014. "Matrices de Contabilidad Social y Modelos de Equilibrio General Aplicado elaborados en España a nivel regional/Social Accounting Matrices and Applied General Equilibrium Models Developed in Spain at ," Estudios de Economía Aplicada, Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 32, pages 427-454, Enero.
- 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.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Publicación Digital - UPO).
If references are entirely missing, you can add them using this form.