Economy-wide implications of direct and indirect policy interventions in the water sector: lessons from recent work and future research needs
Water is increasingly becoming a limiting factor for sustainable economic growth and development in many countries. Its allocation has significant impacts on overall economic efficiency, particularly with growing physical scarcity in certain regions. Greater water supply variability further increases vulnerability in affected regions. Water also has become a strategic resource involving conflicts among those who may be affected differently by various policies. This paper analyzes various policy interventions aimed at improving water allocation decisions, using a novel approach that incorporates macro and micro level considerations in a unified analytical framework. The framework facilitates assessment of various linkages among policies and their impacts within individual sectors and economy-wide. Drawing on country based studies in Morocco, South Africa, Turkey, and Mexico, the analysis reveals difficult tradeoffs among various policy objectives, including priorities placed on different sectors, regional advantages, and general economic efficiency gains versus broader social impacts. The comparison of policy impacts demonstrates the usefulness of the framework in information that policy makers can use to rank the policy interventions according to the emphasis placed on different policy objectives. The paper also compares approaches used in other studies that apply computable general equilibrium models in various contexts of water, environment and agriculture.
|Date of creation:||01 May 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
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.:
- Hasan DUDU & Erol H. ÇAKMAK & Şirin D. SARAÇOĞLU, 2010. "Climate change and irrigation in Turkey: A CGE approach," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 25(286), pages 9-33.
- Deborah Peterson & Gavan Dwyer & David Appels & Jane Fry, 2005. "Water Trade in the Southern Murray-Darling Basin," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages S115-S127, 08.
- Maria Berrittella & Katrin Rehdanz & Richard S.J. Tol & Jian Zhang, 2007.
"The Impact Of Trade Liberalisation On Water Use: A Computable General Equilibrium Analysis,"
FNU-142, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2007.
- Rehdanz, Katrin & Berrittella, Maria & S.J. Tol, Richard & Zhang, Jian, 2008. "The Impact of Trade Liberalization on Water Use: A Computable General Equilibrium Analysis," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 631-655.
- 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.
- Esther Velázquez & M. Alejandro Cardenete & Geoffrey J.D. Hewings, 2007.
"Water price and water reallocation in Andalusia. A computable general equilibrium approach,"
07.04, Universidad Pablo de Olavide, Department of Economics.
- Esther Velázquez & M. Alejandro Cardenete & Geoffrey J.D. Hewings, . "Water Price and Water Relocation in Andalusia. A Computable General Equilibrium Approach," Regional and Urban Modeling 283600101, EcoMod.
- Diao, Xinshen & Dinar, Ariel & Roe, Terry L. & Tsur, Yacov, 2007.
"A General Equilibrium Analysis Of Conjunctive Ground And Surface Water Use With An Application To Morocco,"
7143, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
- Xinshen Diao & Ariel Dinar & Terry Roe & Yacov Tsur, 2008. "A general equilibrium analysis of conjunctive ground and surface water use with an application to Morocco," Agricultural Economics, International Association of Agricultural Economists, vol. 38(2), pages 117-135, 03.
- Rashid Hassan & James Thurlow, 2011.
"Macro–micro feedback links of water management in South Africa: CGE analyses of selected policy regimes,"
International Association of Agricultural Economists, vol. 42(2), pages 235-247, 03.
- Hassan, R. & Thurlow, J. & Roe, T. & Diao, X. & Chumi., S. & Tsur, Y., 2008. "Macro-micro feedback links of water management in South Africa : CGE analyses of selected policy regimes," Policy Research Working Paper Series 4768, The World Bank.
- 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.
- D. Peterson & G. Dwyer & D. Appels & J. Fry, 2005. "Modelling Water Trade in the Southern Murray-Darling Basin," Urban/Regional 0506007, EconWPA.
- Maria Berrittella & Katrin Rehdanz & Roberto Roson & Richard S.J. Tol, 2006. "The Economic Impact Of Water Pricing: A Computable General Equilibrium Analysis," Working Papers FNU-96, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2006.
- Johansson, Robert C., 2005. "Micro and macro-level approaches for assessing the value of irrigation water," Policy Research Working Paper Series 3778, The World Bank.
- Strzepek, Kenneth M. & Yohe, Gary W. & Tol, Richard S.J. & Rosegrant, Mark W., 2008.
"The value of the high Aswan Dam to the Egyptian economy,"
Elsevier, vol. 66(1), pages 117-126, May.
- Kenneth M. Strzepek & Gary W. Yohe & Richard S.J. Tol & Mark Rosegrant, 2006. "The Value Of The High Aswan Dam To The Egyptian Economy," Working Papers FNU-111, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2006.
- 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.
- Richard S. J. Tol, 2010.
"The Economic Impact of Climate Change,"
Perspektiven der Wirtschaftspolitik,
Verein für Socialpolitik, vol. 11(s1), pages 13-37, 05.
- Goodman, D. Jay, 2000. "More Reservoirs Or Transfers? A Computable General Equilibrium Analysis Of Projected Water Shortages In The Arkansas River Basin," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(02), December.
- 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".
- James Blignaut & Jan van Heerden, 2009.
"Is Water Shedding Next?,"
141, Economic Research Southern Africa.
- Cakmak, Erol H. & Dudu, Hasan & Saracoglu, Sirin & Diao, Xinshen & Roe, Terry & Tsur, Yacov, 2008. "Macro-Micro Feedback Links Of Irrigation Water Management In Turkey," Policy Research Working Paper Series 4781, The World Bank.
- 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.
- 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.
- Tirado, Dolores & Lozano, Javier & Gomez Gomez, Carlos Mario, 2010. "Economic regional impacts of water transfers: the role of factor mobility in a case study of the agricultural sector in the Balearic Islands," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 10(2).
- Peter B. Dixon & Maureen T. Rimmer & Glyn Wittwer, 2011. "Saving the Southern Murray‐Darling Basin: The Economic Effects of a Buyback of Irrigation Water," The Economic Record, The Economic Society of Australia, vol. 87(276), pages 153-168, March.
- 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.
- Tsur, Yacov & Dinar, Ariel & Doukkali, Rachid M. & Roe, Terry, 2004. "Irrigation water pricing: policy implications based on international comparison," Environment and Development Economics, Cambridge University Press, vol. 9(06), pages 735-755, December.
- Roe, Terry & Dinar, Ariel & Tsur, Yacov & Xinshen Diao, 2005. "Feedback links between economy-wide and farm-level policies : application to irrigation water management in Morocco," Policy Research Working Paper Series 3550, The World Bank.
- Gill, Tania & Punt, Cecilia, 2010. "The Potential Impact of Increased Irrigation Water Tariffs in South Africa," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96425, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Africa (AEASA).
- Anthony Letsoalo & James Blignaut & Theuns de Wet & Martin de Wit & Sebastiaan Hess & Richard S.J. Tol & Jan van Heerden, 2005. "Triple Dividends Of Water Consumption Charges In South Africa," Working Papers FNU-62, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2005.
- Adam Rose & Shu-Yi Liao, 2005. "Modeling Regional Economic Resilience to Disasters: A Computable General Equilibrium Analysis of Water Service Disruptions," Journal of Regional Science, Wiley Blackwell, vol. 45(1), pages 75-112.
- Olga DIUKANOVA & James LENNOX, . "Modelling Regional General Equilibrium Effects and Irrigation in Canterbury," EcoMod2008 23800030, EcoMod.
- Dwyer, Gavan & Loke, Paul & Appels, David & Stone, Susan F. & Peterson, Deborah C., 2005. "Integrating rural and urban water markets in south east Australia: Preliminary analysis," Conference/Workshop Proceedings 31909, Productivity Commission.
- Dolores Tirado & Carlos M. Gómez & Javier Lozano, 2006. "Efficiency improvements and water policy in the balearic islands: a general equilibrium approach," Investigaciones Economicas, Fundación SEPI, vol. 30(3), pages 441-463, September.
- R. Maria Saleth & Ariel Dinar, 2004. "The Institutional Economics of Water : A Cross-Country Analysis of Institutions and Performance," World Bank Publications, The World Bank, number 14884, December.
- Juana, James S. & Strzepek, Kenneth M. & Kirsten, Johann F., 2008. "Householdsâ€™ welfare analyses of the impact of global change on water resources in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(3), September.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:6068. 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: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.