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Water Scarcity And The Impact Of Improved Irrigation Management: A Cge Analysis

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

    ()
    (Economic and Social Research Institute)

Abstract

We use the new version of the GTAP-W model to analyze the economy-wide impacts of enhanced irrigation efficiency. The new production structure of the model, which introduces a differentiation between rainfed and irrigated crops, allows a better understanding of the use of water resources in agricultural sectors. The results indicate that a water policy directed to improvements in irrigation efficiency in water-stressed regions is not beneficial for all. For water-stressed regions the effects on welfare and demand for water are mostly positive. For non-water scarce regions the results are more mixed and mostly negative. Global water savings are achieved. Not only regions where irrigation efficiency changes are able to save water, but also other regions are pushed to conserve water.

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File URL: http://www.fnu.zmaw.de/fileadmin/fnu-files/publication/working-papers/CGEirrigationWP.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by Research unit Sustainability and Global Change, Hamburg University in its series Working Papers with number FNU-160.

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Length: 34 pages
Date of creation: Apr 2008
Date of revision: Apr 2008
Handle: RePEc:sgc:wpaper:160

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Keywords: Computable General Equilibrium; Irrigation; Water Policy; Water Scarcity; Irrigation efficiency;

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References

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  1. Maria Berrittella & Katrin Rehdanz & Richard S.J. Tol, 2006. "The Economic Impact Of The South-North Water Transfer Project In China: A Computable General Equilibrium Analysis," Working Papers FNU-117, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2006.
  2. Pereira, Luis S., 1999. "Higher performance through combined improvements in irrigation methods and scheduling: a discussion," Agricultural Water Management, Elsevier, vol. 40(2-3), pages 153-169, May.
  3. Tsur, Yacov & Dinar, Ariel & Doukkali, Rachid M. & Roe, Terry, 2004. "Irrigation water pricing: policy implications based on international comparison," Environment and Development Economics, Cambridge University Press, vol. 9(06), pages 735-755, December.
  4. Dinar, Ariel & Yaron, Dan, 1992. "Adoption and abandonment of irrigation technologies," Agricultural Economics, Blackwell, vol. 6(4), pages 315-332, April.
  5. 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, vol. 34(4), pages 473-487.
  6. Maria Berrittella & Katrin Rehdanz & Roberto Roson & Richard S.J. Tol, 2006. "The Economic Impact Of Water Pricing: A Computable General Equilibrium Analysis," Working Papers FNU-96, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2006.
  7. Seagraves, J.A. & Easter, K. William, 1982. "Pricing for Irrigation Water," Economic Reports 8445, University of Minnesota, Department of Applied Economics.
  8. van Heerden, Jan H. & Blignaut, James & Horridge, Mark, 2008. "Integrated water and economic modelling of the impacts of water market instruments on the South African economy," Ecological Economics, Elsevier, vol. 66(1), pages 105-116, May.
  9. Diao, Xinshen & Roe, Terry, 2003. "Can a water market avert the "double-whammy" of trade reform and lead to a "win-win" outcome?," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 708-723, May.
  10. Abdul Kamara & Hilmy Sally, 2004. "Water management options for food security in South Africa: scenarios, simulations and policy implications," Development Southern Africa, Taylor & Francis Journals, vol. 21(2), pages 365-384.
  11. Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  12. Hiro Lee & Joaquim Oliveira Martins & Dominique van der Mensbrugghe, 1994. "The OECD Green Model: An Updated Overview," OECD Development Centre Working Papers 97, OECD Publishing.
  13. Decaluwe, B. & Patry, A. & Savard, L., 1999. "`When Water Is No Longer Heaven Sent: Comparative Pricing Analysis in an AGE Model," Papers 9905, Laval - Recherche en Politique Economique.
  14. 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.
  15. K. William Easter & Yang Liu, 2005. "Cost Recovery and Water Pricing for Irrigation and Drainage : What Works?," World Bank Other Operational Studies 9648, The World Bank.
  16. Mailhol, J. C. & Zairi, A. & Slatni, A. & Ben Nouma, B. & El Amani, H., 2004. "Analysis of irrigation systems and irrigation strategies for durum wheat in Tunisia," Agricultural Water Management, Elsevier, vol. 70(1), pages 19-37, October.
  17. Kenneth M. Strzepek & Gary W. Yohe & Richard S.J. Tol & Mark Rosegrant, 2006. "The Value Of The High Aswan Dam To The Egyptian Economy," Working Papers FNU-111, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2006.
  18. Rehdanz, Katrin & Berrittella, Maria & S.J. Tol, Richard & Zhang, Jian, 2008. "The Impact of Trade Liberalization on Water Use: A Computable General Equilibrium Analysis," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 631-655.
  19. Pereira, Luis Santos & Oweis, Theib & Zairi, Abdelaziz, 2002. "Irrigation management under water scarcity," Agricultural Water Management, Elsevier, vol. 57(3), pages 175-206, December.
  20. Rosegrant, Mark W. & Cai, Ximing & Cline, Sarah A., 2002. "Water and food to 2025," Issue briefs 13, International Food Policy Research Institute (IFPRI).
  21. Deng, Xi-Ping & Shan, Lun & Zhang, Heping & Turner, Neil C., 2006. "Improving agricultural water use efficiency in arid and semiarid areas of China," Agricultural Water Management, Elsevier, vol. 80(1-3), pages 23-40, February.
  22. Scott McDonald & Sherman Robinson & Karen Thierfelder, 2007. "Globe: A SAM Based Global CGE Model using GTAP Data," Departmental Working Papers 14, United States Naval Academy Department of Economics.
  23. Dinar, Ariel & Yaron, Dan, 1992. "Adoption and abandonment of irrigation technologies," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 6(4), April.
  24. Lilienfeld, Amy & Asmild, Mette, 2007. "Estimation of excess water use in irrigated agriculture: A Data Envelopment Analysis approach," Agricultural Water Management, Elsevier, vol. 94(1-3), pages 73-82, December.
  25. Yang, Hong & Zhang, Xiaohe & Zehnder, Alexander J. B., 2003. "Water scarcity, pricing mechanism and institutional reform in northern China irrigated agriculture," Agricultural Water Management, Elsevier, vol. 61(2), pages 143-161, June.
  26. Anthony Letsoalo & James Blignaut & Theuns de Wet & Martin de Wit & Sebastiaan Hess & Richard S.J. Tol & Jan van Heerden, 2005. "Triple Dividends Of Water Consumption Charges In South Africa," Working Papers FNU-62, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2005.
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Citations

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Cited by:
  1. Alvaro Calzadilla & Tingju Zhu & Katrin Rehdanz & Richard S.J. Tol & Claudia Ringler, . "Economy-wide Impacts of Climate on Agriculture in Sub-Saharan Africa," Working Papers FNU-170, Research unit Sustainability and Global Change, Hamburg University.
  2. Alvaro Calzadilla & Katrin Rehdanz & Richard Betts & Pete Falloon & Andy Wiltshire & Richard Tol, 2013. "Climate change impacts on global agriculture," Climatic Change, Springer, vol. 120(1), pages 357-374, September.
  3. Roberto Ponce & Francesco Bosello & Carlo Giupponi, 2012. "Integrating Water Resources into Computable General Equilibrium Models - A Survey," Working Papers 2012.57, Fondazione Eni Enrico Mattei.
  4. Calzadilla, Alvaro & Zhu, Tingju & Rehdanz, Katrin & Tol, Richard S.J. & Ringler, Claudia, 2013. "Economywide impacts of climate change on agriculture in Sub-Saharan Africa," Ecological Economics, Elsevier, vol. 93(C), pages 150-165.

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