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The Economic Impacts of the Change in Sectoral Water Use in Maricopa County, Arizona: Modified Input-Output Approach

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  • James Yoo

    (California Baptist University)

Abstract

This paper investigates the impact of change in sectoral water supply on employment in Maricopa County, Arizona using input-output model. The main contribution of this study is two-fold. First, we generate a database on water use by water source: surface water and groundwater. Second, we develop a modified input-output model that captures the economic impact of substitution in water use from surface to ground water due to variation in the cost of water supply.The study exercises two water supply change scenarios. Scenario I assumes that the total water supply/use decreases by 1% but the reduction comes only from surface water use, holding groundwater use constant. Scenario II assumes that surface water supply/use in all sectors decreases by 1%, and the reduction in surface water use is replaced by the exact amount of more expensive groundwater. We found that the magnitude of economic impacts depends on consumer?s responsiveness to water price change. When price elasticity of water demand is relatively low (

Suggested Citation

  • James Yoo, 2015. "The Economic Impacts of the Change in Sectoral Water Use in Maricopa County, Arizona: Modified Input-Output Approach," Proceedings of International Academic Conferences 2804932, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:2804932
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    File URL: https://iises.net/proceedings/19th-international-academic-conference-florence/table-of-content/detail?cid=28&iid=144&rid=4932
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    More about this item

    Keywords

    economic impacts; input-output model; water supply;
    All these keywords.

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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