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The use of computable general equilibrium models to assess water policies

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  • Berck, Peter
  • Robinson, Sherman
  • Goldman, George E

Abstract

This paper discusses basic issues in project analysis and shows how these issues can be resolved in a computable general equilibrium (CGE) framework. The role of border prices and intersectoral linkages is explored. The CGE framework is compared to less comprehensive frameworks, including benefit-cost analysis, input-output models, multi-market models, and models based on social accounting matrices (SAMs). An illustrative CGE model of the southern portion of the San Joaquin Valley is constructed and is used to find the effects of reducing water inputs on aggregate Valley gross domestic product (GDP) and on sectoral output, employment, and land use. The model is also used to determine demand curves for water by the southern portion of the Valley, given alternative specifications of production technology.

Suggested Citation

  • Berck, Peter & Robinson, Sherman & Goldman, George E, 1990. "The use of computable general equilibrium models to assess water policies," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt082465zv, Department of Agricultural & Resource Economics, UC Berkeley.
  • Handle: RePEc:cdl:agrebk:qt082465zv
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    References listed on IDEAS

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    1. Rosen, Harvey S & Rosen, Kenneth T, 1980. "Federal Taxes and Homeownership: Evidence from Time Series," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 59-75, February.
    2. Olsen, Edgar O. & Barton, David M., 1983. "The benefits and costs of public housing in New York City," Journal of Public Economics, Elsevier, vol. 20(3), pages 299-332, April.
    3. White, Michelle J. & White, Lawrence J., 1977. "The tax subsidy to owner-occupied housing: Who benefits?," Journal of Public Economics, Elsevier, vol. 7(1), pages 111-126, February.
    4. Murray, Michael P, 1975. "The Distribution of Tenant Benefits in Public Housing," Econometrica, Econometric Society, vol. 43(4), pages 771-788, July.
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    Cited by:

    1. Anne Briand, 2006. "Marginal Cost Versus Average Cost Pricing with Climatic Shocks in Senegal: A Dynamic Computable General Equilibrium Model Applied to Water," Working Papers 2006.144, Fondazione Eni Enrico Mattei.
    2. 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.
    3. Elena G. Irwin & Andrew M. Isserman & Maureen Kilkenny & Mark D. Partridge, 2010. "A Century of Research on Rural Development and Regional Issues," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 522-553.

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