IDEAS home Printed from https://ideas.repec.org/a/taf/ecsysr/v27y2015i2p154-171.html
   My bibliography  Save this article

Economic Implications Of Policy Restrictions On Water Withdrawals From Surface And Underground Sources

Author

Listed:
  • Carlos A. L�pez-Morales
  • Faye Duchin

Abstract

The appropriation of water for economic activities is limited by regional surface and underground endowments, and symptoms of environmentally unsustainable withdrawals are already visible in many regions of the world. In this paper we investigate the economic implications of water policy imposing source- and region-specific restrictions on water withdrawals taking the Mexican economy as a case study. We use an inter-regional input-output model of Mexico's hydro-economic regions to allocate production subject to the availability of water and other factors of production. Water sustainability requires a reduction of 7.5 km-super-3/yr of groundwater withdrawals, which is compensated by an increase of 3.4 km-super-3/yr of surface water, an expansion onto an additional 1.4 million hectares of rainfed land, and modifications in subnational patterns of food trade. This framework for evaluating scenarios describing sustainability-oriented water policies is readily applicable to other regions.

Suggested Citation

  • Carlos A. L�pez-Morales & Faye Duchin, 2015. "Economic Implications Of Policy Restrictions On Water Withdrawals From Surface And Underground Sources," Economic Systems Research, Taylor & Francis Journals, vol. 27(2), pages 154-171, June.
    • Handle: RePEc:taf:ecsysr:v:27:y:2015:i:2:p:154-171
    DOI: 10.1080/09535314.2014.980224
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09535314.2014.980224
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09535314.2014.980224?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wichelns, Dennis, 2004. "The policy relevance of virtual water can be enhanced by considering comparative advantages," Agricultural Water Management, Elsevier, vol. 66(1), pages 49-63, April.
    2. 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.
    3. Llop, Maria, 2008. "Economic impact of alternative water policy scenarios in the Spanish production system: An input-output analysis," Ecological Economics, Elsevier, vol. 68(1-2), pages 288-294, December.
    4. Faye Duchin, 2005. "A world trade model based on comparative advantage with m regions, n goods, and k factors," Economic Systems Research, Taylor & Francis Journals, vol. 17(2), pages 141-162.
    5. Roxana Juliá & Faye Duchin, 2013. "Land Use Change and Global Adaptations to Climate Change," Sustainability, MDPI, vol. 5(12), pages 1-18, December.
    6. Faye Duchin & Stephen Levine, 2012. "The rectangular sector-by-technology model: not every economy produces every product and some products may rely on several technologies simultaneously," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 1(1), pages 1-11, December.
    7. Anders Hammer Strømman & Edgar G. Hertwich & Faye Duchin, 2009. "Shifting Trade Patterns as a Means of Reducing Global Carbon Dioxide Emissions," Journal of Industrial Ecology, Yale University, vol. 13(1), pages 38-57, February.
    8. Alvaro Calzadilla & Katrin Rehdanz & Richard S.J. Tol, 2011. "Water scarcity and the impact of improved irrigation management: a computable general equilibrium analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 42(3), pages 305-323, May.
    9. Anders Hammer Strømman & Faye Duchin, 2006. "A world trade model with bilateral trade based on comparative advantage," Economic Systems Research, Taylor & Francis Journals, vol. 18(3), pages 281-297.
    10. Lenzen, Manfred & Moran, Daniel & Bhaduri, Anik & Kanemoto, Keiichiro & Bekchanov, Maksud & Geschke, Arne & Foran, Barney, 2013. "International trade of scarce water," Ecological Economics, Elsevier, vol. 94(C), pages 78-85.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Faye Duchin, 2017. "Resources for Sustainable Economic Development: A Framework for Evaluating Infrastructure System Alternatives," Sustainability, MDPI, vol. 9(11), pages 1-15, November.
    2. Eamen, Leila & Brouwer, Roy & Razavi, Saman, 2020. "The economic impacts of water supply restrictions due to climate and policy change: A transboundary river basin supply-side input-output analysis," Ecological Economics, Elsevier, vol. 172(C).
    3. Rocco, Matteo V. & Golinucci, Nicolò & Ronco, Stefano M. & Colombo, Emanuela, 2020. "Fighting carbon leakage through consumption-based carbon emissions policies: Empirical analysis based on the World Trade Model with Bilateral Trades," Applied Energy, Elsevier, vol. 274(C).
    4. Ortuzar, Iban & Serrano, Ana & Xabadia, Àngels, 2023. "Macroeconomic impacts of water allocation under droughts. Accounting for global supply chains in a multiregional context," Ecological Economics, Elsevier, vol. 211(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Faye Duchin, 2017. "Resources for Sustainable Economic Development: A Framework for Evaluating Infrastructure System Alternatives," Sustainability, MDPI, vol. 9(11), pages 1-15, November.
    2. Wiedmann, Thomas, 2009. "A review of recent multi-region input-output models used for consumption-based emission and resource accounting," Ecological Economics, Elsevier, vol. 69(2), pages 211-222, December.
    3. Rocco, Matteo V. & Golinucci, Nicolò & Ronco, Stefano M. & Colombo, Emanuela, 2020. "Fighting carbon leakage through consumption-based carbon emissions policies: Empirical analysis based on the World Trade Model with Bilateral Trades," Applied Energy, Elsevier, vol. 274(C).
    4. 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.
    5. 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.
    6. Alexandre Tisserant & Stefan Pauliuk, 2016. "Matching global cobalt demand under different scenarios for co-production and mining attractiveness," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-19, December.
    7. Foster-McGregor, Neil & Nomaler, Önder & Verspagen, Bart, 2021. "Job Automation Risk, Economic Structure and Trade: a European Perspective," Research Policy, Elsevier, vol. 50(7).
    8. Alexandre Tisserant & Stefan Pauliuk, 2016. "Matching global cobalt demand under different scenarios for co-production and mining attractiveness," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-19, December.
    9. Ignacio Cazcarro & Carlos A. López‐Morales & Faye Duchin, 2019. "The global economic costs of substituting dietary protein from fish with meat, grains and legumes, and dairy," Journal of Industrial Ecology, Yale University, vol. 23(5), pages 1159-1171, October.
    10. Chen, Z.M. & Chen, G.Q., 2011. "Embodied carbon dioxide emission at supra-national scale: A coalition analysis for G7, BRIC, and the rest of the world," Energy Policy, Elsevier, vol. 39(5), pages 2899-2909, May.
    11. Onil Banerjee & Martin Cicowiez & Mark Horridge & Renato Vargas, 2016. "A Conceptual Framework for Integrated Economic-Environmental Modelling," CEDLAS, Working Papers 0202, CEDLAS, Universidad Nacional de La Plata.
    12. Elizabeth L. Roos & Heinrich R. Bohlmann & Jan H. van Heerden & Nicholas Kilimani, 2016. "Counting the cost of drought induced productivity losses in an agro-based economy: The case of Uganda," Working Papers 616, Economic Research Southern Africa.
    13. Ansink, Erik, 2010. "Refuting two claims about virtual water trade," Ecological Economics, Elsevier, vol. 69(10), pages 2027-2032, August.
    14. Jason F. L. Koopman & Onno Kuik & Richard S. J. Tol & Roy Brouwer, 2017. "The potential of water markets to allocate water between industry, agriculture, and public water utilities as an adaptation mechanism to climate change," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 22(2), pages 325-347, February.
    15. Maria Amaya & Faye Duchin & Erich Hester & John C. Little, 2022. "Applying a Coupled Hydrologic-Economic Modeling Framework: Evaluating Alternative Options for Reducing Impacts for Downstream Locations in Response to Upstream Development," Sustainability, MDPI, vol. 14(11), pages 1-19, May.
    16. Zhang, Chao & Anadon, Laura Diaz, 2014. "A multi-regional input–output analysis of domestic virtual water trade and provincial water footprint in China," Ecological Economics, Elsevier, vol. 100(C), pages 159-172.
    17. Kirsten Svenja Wiebe & Eivind Lekve Bjelle & Johannes Többen & Richard Wood, 2018. "Implementing exogenous scenarios in a global MRIO model for the estimation of future environmental footprints," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-18, December.
    18. Joseph Palazzo & Roland Geyer & Sangwon Suh, 2020. "A review of methods for characterizing the environmental consequences of actions in life cycle assessment," Journal of Industrial Ecology, Yale University, vol. 24(4), pages 815-829, August.
    19. Wiedmann, Thomas & Lenzen, Manfred & Turner, Karen & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 2: Review of input-output models for the assessment of environmental impacts embodied in trade," Ecological Economics, Elsevier, vol. 61(1), pages 15-26, February.
    20. Han, M.Y. & Chen, G.Q. & Mustafa, M.T. & Hayat, T. & Shao, Ling & Li, J.S. & Xia, X.H. & Ji, Xi, 2015. "Embodied water for urban economy: A three-scale input–output analysis for Beijing 2010," Ecological Modelling, Elsevier, vol. 318(C), pages 19-25.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ecsysr:v:27:y:2015:i:2:p:154-171. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CESR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.