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Efficiency improvements and water policy in the balearic islands: a general equilibrium approach


  • Dolores Tirado

    (Universidad de las Islas Baleares)

  • Carlos M. Gómez

    (Universidad de Alcalá)

  • Javier Lozano

    (Universidad de las Islas Baleares)


We use an Applied General Equilibrium Model of the Balearic Islands to explore the impact of increasing the technical efficiency of water use in the tourism sector. We show that water efficiency measures do not reduce economic pressures on water ecosystems. Consequently water price increases and reductions in water withdrawals are needed as ancillary measures. This water policy package opens a menu of possible outcomes in terms of conservation of water resources and the production of market goods. We also provide information about distributional impacts that should be considered to determine the convenience of implementing water saving programs.

Suggested Citation

  • Dolores Tirado & Carlos M. Gómez & Javier Lozano, 2006. "Efficiency improvements and water policy in the balearic islands: a general equilibrium approach," Investigaciones Economicas, Fundación SEPI, vol. 30(3), pages 441-463, September.
  • Handle: RePEc:iec:inveco:v:30:y:2006:i:3:p:441-463

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    Cited by:

    1. Pérez Blanco, Carlos Dionisio & Gómez Gómez, Carlos Mario & Garrido Yserte, Rubén, 2010. "Cambio estructural regional y agua: Escasez, dependencia e impactos sobre el tejido económico. El caso de Andalucía/Structural Change and Water: Scarcity, Dependence and Impacts on the Economy. The Ca," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 28, pages 423-446, Agosto.
    2. 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.
    3. Luckmann, Jonas & Ihle, Rico & Kleinwechter, Ulrich & Grethe, Harald, 2015. "The Effects of Vietnamese Export Policies on the World Market Integration of Domestic Rice Markets," 2015 Conference, August 9-14, 2015, Milan, Italy 212159, International Association of Agricultural Economists.
    4. Gomez Gomez, Carlos Mario & Perez Blanco, Carlos Dionisio, 2013. "Myths and Maths of Water Efficiency: An Analytical Framework to Assess the Real Outcome of Water Saving Technologies in Irrigation," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158690, Agricultural Economics Society.
    5. Perez Blanco, Carlos Dionisio & Gomez Gomez, Carlos Mario, 2012. "Development of private insurance schemes as a means to reduce water overexploitation during drought events. A case study in Campo de Cartagena (Segura River Basin, Spain)," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122453, European Association of Agricultural Economists.
    6. Carlos Dionisio Pérez Blanco & Carlos Mario Gómez Gómez, 2014. "An Integrated Risk Assessment Model for the Implementation of Drought Insurance Markets in Spain," Working Papers 2014.62, Fondazione Eni Enrico Mattei.
    7. Luckmann, Jonas & Grethe, Harald & McDonald, Scott, 2015. "When Water Saving Limits Recycling: Modeling Economy-wide Linkages of Wastewater Use," 2015 Conference, August 9-14, 2015, Milan, Italy 212161, International Association of Agricultural Economists.
    8. Pérez Blanco, Carlos Dionisio & Gómez Gómez, Carlos Mario & Del Villar García, Alberto, 2011. "El riesgo de disponibilidad de agua en la agricultura: una aplicación a las cuencas del Guadalquivir y del Segura/Water Availability Risk in Agriculture: An Application to Guadalquivir and Segura Rive," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 29, pages 333-358, Abril.
    9. Luckmann, Jonas & Siddig, Khalid H.A. & Flaig, Dorothee & Grethe, Harald, 2012. "Mitigating Water Scarcity In Israel – A Computable General Equilibrium Analysis," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 133942, German Association of Agricultural Economists (GEWISOLA).
    10. Jonas Luckmann & Khalid Siddig & Harald Grethe, 2012. "Modeling sectorally differentiated water prices and policies: an application to the Israeli water economy," EcoMod2012 4452, EcoMod.
    11. Adam Loch & David Adamson, 2015. "Drought and the rebound effect: a Murray–Darling Basin example," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 79(3), pages 1429-1449, December.

    More about this item


    Applied general equilibrium; water economics.;

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models


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