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The GTAP-W model: accounting for water use in agriculture

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

Water and agriculture are intrinsically linked. Water is essential for crop production and agriculture is the largest consumer of freshwater resources. However, this link is commonly ignored by economic models mainly because water use is not reported in the national economic accounts. Few regions have markets for water. This paper describes the new version of GTAP-W, a multi-region, multi-sector computable general equilibrium model of the world economy. The new version of GTAP-W distinguishes between rainfed and irrigated agriculture and introduces water as an explicit factor of production for irrigated agriculture. Moreover, the new production structure accounts for substitution possibilities between irrigation and other primary factors. The new model has been used to study a variety of topics including: irrigation efficiency, sustainable water use, climate change and trade liberalization. This paper is a technical description of the data and features added to the standard GTAP model

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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1745.

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Length: 40 pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:kie:kieliw:1745
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  1. Dudu, Hasan & Chumi, Sinqobile, 2008. "Economics of irrigation water management : a literature survey with focus on partial and general equilibrium models," Policy Research Working Paper Series 4556, The World Bank.
  2. 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.
  3. Peterson, Deborah C. & Dwyer, Gavan & Appels, David & Fry, Jane, 2004. "Modelling Water Trade in the Southern Murray-Darling Basin," Staff Working Papers 31925, Productivity Commission.
  4. Maria Berrittella & Katrin Rehdanz & Roberto Roson & Richard S.J. Tol, 2008. "The Economic Impact Water Taxes: a Computable General Equilibrium Analysis with an International Data Set," Working Papers 2008_05, Department of Economics, University of Venice "Ca' Foscari".
  5. Lee, Huey-Lin & Thomas Hertel & Brent Sohngen & Navin Ramankutty, 2005. "Towards An Integrated Land Use Database for Assessing the Potential for Greenhouse Gas Mitigation," GTAP Technical Papers 1900, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  6. Darwin, Roy & Tsigas, Marinos E. & Lewandrowski, Jan & Raneses, Anton, 1995. "World Agriculture and Climate Change: Economic Adaptations," Agricultural Economics Reports 33933, United States Department of Agriculture, Economic Research Service.
  7. Arndt, Channing, 1996. "An Introduction to Systematic Sensitivity Analysis via Gaussian Quadrature," GTAP Technical Papers 305, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  8. Horridge, Mark & Wittwer, Glyn, 2008. "SinoTERM, a multi-regional CGE model of China," China Economic Review, Elsevier, vol. 19(4), pages 628-634, December.
  9. Gohin, Alex & Hertel, Thomas, 2003. "A Note on the CES Functional Form and Its Use in the GTAP Model," GTAP Research Memoranda 1370, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  10. Tyner, Wallace E., 2009. "The Integration of Energy and Agricultural Markets," 2009 Conference, August 16-22, 2009, Beijing, China 53214, International Association of Agricultural Economists.
  11. 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, 05.
  12. Scott McDonald & Sherman Robinson & Karen Thierfelder, 2005. "A SAM Based Global CGE Model using GTAP Data January 2005," Working Papers 2005001, The University of Sheffield, Department of Economics, revised Jan 2005.
  13. Alvaro Calzadilla & Katrin Rehdanz & Richard S.J. Tol, 2008. "The Eonomic Impact Of More Sustainable Water Use In Agriculture: A Computable General Equilibrium Analysis," Working Papers FNU-169, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2008.
  14. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685.
  15. 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.
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