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Water Reallocation in the Input-Output Model

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  • Llop Llop, Maria

Abstract

Water reallocation between economic agents has been –and continues to be- the subject of a considerable amount of research. This paper proposes a method for evaluating how water is reallocated within the economy in response to changes in final demand and changes in the technical water needs of activities and consumers. The empirical application, which is for the Catalan economy, shows important asymmetries in the effects that exogenous inflows and changes in water technical requirements cause on water reallocation. In the process of water distribution, exogenous inflows mostly benefit agriculture and damage private consumers. On the other hand, increases in technical water requirements have negative effects on agriculture and positive effects on the other production activities. The results of the study suggest that agriculture is an important activity not only in terms of water distribution but also in terms of water reallocation due to changes in final demand and technical water needs. Keywords: Water reallocation, water distribution, exogenous shock, technical water needs.

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Paper provided by Universitat Rovira i Virgili, Department of Economics in its series Working Papers with number 2072/151815.

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Date of creation: 2011
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Handle: RePEc:urv:wpaper:2072/151815

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Keywords: Aigua -- Distribució; 33 - Economia;

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  1. 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.
  2. 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.
  3. Maria Llop, 2012. "The role of saving and investment in a SAM price model," The Annals of Regional Science, Springer, Springer, vol. 48(1), pages 339-357, February.
  4. 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.
  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, Springer, vol. 34(4), pages 473-487.
  6. M. Alejandro Cardenete & G.J.D. Hewings & E. Velázquez, 2005. "Precio del agua y relocalización del recurso en la economía andaluza. Una aproximación desde un modelo de equilibrio general aplicado," Economic Working Papers at Centro de Estudios Andaluces E2005/22, Centro de Estudios Andaluces.
  7. Llop, Maria & Manresa, Antonio, 2004. "Income distribution in a regional economy: a SAM model," Journal of Policy Modeling, Elsevier, Elsevier, vol. 26(6), pages 689-702, September.
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Cited by:
  1. Llop Llop, Maria & Ponce Alifonso, Xavier, 2014. "Identifying the Role of Final Consumption in Structural Path Analysis: An Application to Water Uses," Working Papers, Universitat Rovira i Virgili, Department of Economics 2072/237598, Universitat Rovira i Virgili, Department of Economics.

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