Water price and water reallocation in Andalusia. A computable general equilibrium approach
The objective of this work is to analyze the effects that an increase in the price of the water delivered to the agriculture sector to promote the conservation of this resource would have on the efficiency of the consumption of water and the possible reallocation of water to the remaining productive sectors. The analysis is motivated by the fact that the agriculture consumes a disproportionately large amount of water at very low prices. The methodology that will be used to explore the implications on the economy will be a computable general equilibrium model (CGE), previously designed for an analysis of the direct taxes of the Andalusian economy (Cardenete and Sancho, 2003), but now enhanced and extended to include emissions of pollutants and the introduction of environmental taxes (André, Cardenete and Velázquez, 2005). This model has been further modified to introduce the variations in the water price that we will try to analyze by means of a tariff applied on the production structure. The main conclusion drawn indicates that, although the tax policy applied does not correspond to a significant water saving in the above-mentioned sector, a reallocation of this resource is achieved which seems to generate a more efficient and more rational behavior from a production point of view.
|Date of creation:||Mar 2007|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: + 34 954 34 8913
Fax: + 34 954 34 9339
Web page: http://www.upo.es/econ/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hewings, Geoffrey J.D. & Dridi, Chokri & Guilhoto, Joaquim J.M., 2005.
"Impacts of reallocation of resource constraints on the northeast economy of Brazil,"
38210, University Library of Munich, Germany.
- 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.
- Seung, Chang K. & Englin, Jeffrey E. & Harris, Thomas R., 1997. "Application of Computable General Equilibrium Model to Derive Impacts of Surface Water Reallocation Policy," 1997 Annual Meeting, July 13-16, 1997, Reno\Sparks, Nevada 35841, Western Agricultural Economics Association.
- Francisco André & M. Cardenete & Esther Velázquez, 2005.
"Performing an environmental tax reform in a regional economy. A computable general equilibrium approach,"
The Annals of Regional Science,
Springer, vol. 39(2), pages 375-392, 06.
- Francisco J. André & M. Alejandro Cardenete & Esther Velázquez Alonso, 2004. "Performing an Environmental Tax Reform in a Regional Economy. A Computable General Equilibrium Approach," Economic Working Papers at Centro de Estudios Andaluces E2004/04, Centro de Estudios Andaluces.
- Francisco J. AndrÃ© & M. Alejandro Cardenete, 2004. "Performing an Environmental Tax Reform in a Regional Economy: A Computable General Equilibrium Approach," Computing in Economics and Finance 2004 115, Society for Computational Economics.
- Decaluwe, B. & Patry, A. & Savard, L., 1999.
"`When Water Is No Longer Heaven Sent: Comparative Pricing Analysis in an AGE Model,"
9905, Laval - Recherche en Politique Economique.
- Decaluwé, B. & Patry, A. & Savard, L., 1999. "When Water is no Longer Heaven Sent: Comparative Pricing Analysis in an AGE Model," Cahiers de recherche 9908, Université Laval - Département d'économique.
- 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, vol. 34(4), pages 473-487.
- M. Alejandro Cardenete & Ferran Sancho, 2002. "An Applied General Equilibrium Model to Assess the Impact of National Tax Changes on a Regional Economy," Economic Working Papers at Centro de Estudios Andaluces E2002/13, Centro de Estudios Andaluces.
- Duarte, Rosa & Sanchez-Choliz, Julio & Bielsa, Jorge, 2002. "Water use in the Spanish economy: an input-output approach," Ecological Economics, Elsevier, vol. 43(1), pages 71-85, November.
- Dinar, A. & Subramanian, A., 1997. "Water Pricing Experiences," Papers 386, World Bank - Technical Papers.
- Erik Dietzenbacher & Esther Velazquez, 2007. "Analysing Andalusian Virtual Water Trade in an Input-Output Framework," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 185-196.
- Dixon, Peter B., 1990. "A general equilibrium approach to public utility pricing: determining prices for a water authority," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 745-767.
- Dawkins, Christina & Srinivasan, T.N. & Whalley, John, 2001. "Calibration," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 58, pages 3653-3703 Elsevier.
- Berbel, J. & Gomez-Limon, J. A., 2000. "The impact of water-pricing policy in Spain: an analysis of three irrigated areas," Agricultural Water Management, Elsevier, vol. 43(2), pages 219-238, March.
- Doppler, Werner & Salman, Amer Z. & Al-Karablieh, Emad K. & Wolff, Heinz-Peter, 2002. "The impact of water price strategies on the allocation of irrigation water: the case of the Jordan Valley," Agricultural Water Management, Elsevier, vol. 55(3), pages 171-182, June.
When requesting a correction, please mention this item's handle: RePEc:pab:wpaper:07.04. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Publicación Digital - UPO)
If references are entirely missing, you can add them using this form.