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

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

Abstract

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.

Suggested Citation

  • Calzadilla, Alvaro & Rehdanz, Katrin & Tol, Richard S.J., 2011. "The GTAP-W model: Accounting for water use in agriculture," Kiel Working Papers 1745, Kiel Institute for the World Economy (IfW Kiel).
  • Handle: RePEc:zbw:ifwkwp:1745
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    Cited by:

    1. Zhong, Shuai & Okiyama, Mitsuru & Tokunaga, Suminori, 2015. "Impacts of Water Management System on Agricultural Production and Household Welfare within Urbanization of China: a Computable General Equilibrium Analysis," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 17, pages 1-6.
    2. Jason F.L. Koopman & Onno Kuik & Richard S.J. Tol & Roy Brouwer, 2015. "Water Scarcity From Climate Change And Adaptation Response In An International River Basin Context," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 1-22.
    3. Pérez-Blanco, C. D & Standardi, G., 2019. "Farm waters run deep: a coupled positive multi-attribute utility programming and computable general equilibrium model to assess the economy-wide impacts of water buyback," Agricultural Water Management, Elsevier, vol. 213(C), pages 336-351.
    4. Liu, Jing & Taheripour, Farzad & Hertel, Thomas W., 2012. "Water Availability and Global Land Use Change," Conference papers 332228, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Garnache, Cloé & Mérel, Pierre R. & Lee, Juhwan & Six, Johan, 2017. "The social costs of second-best policies: Evidence from agricultural GHG mitigation," Journal of Environmental Economics and Management, Elsevier, vol. 82(C), pages 39-73.
    6. C. D. Pérez-Blanco & E. E. Koks & E. Calliari & J. Mysiak, 2018. "Economic Impacts of Irrigation-Constrained Agriculture in the Lower Po Basin," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-38, January.
    7. Osman, Rehab & Ferrari, Emanuele & McDonald, Scott, 2019. "Is improving Nile water quality ‘fruitful’?," Ecological Economics, Elsevier, vol. 161(C), pages 20-31.
    8. Osman, Rehab & Ferrari, Emanuele & McDonald, Scott, 2015. "Water Quality Assessment SAM/CGE and Satellite Accounts Integrated Framework-Egypt," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204292, Agricultural Economics Society.
    9. Feng Wu & Jinyan Zhan & Qian Zhang & Zhongxiao Sun & Zhan Wang, 2014. "Evaluating Impacts of Industrial Transformation on Water Consumption in the Heihe River Basin of Northwest China," Sustainability, MDPI, vol. 6(11), pages 1-14, November.
    10. Perez Blanco, C.D., 2018. "Waters run deep: A coupled Revealed Preference and CGE model to assess the economy-wide impacts of agricultural water buyback," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277028, International Association of Agricultural Economists.
    11. Rehab Osman & Emanuele Ferrari & Scott McDonald, 2016. "Water Scarcity and Irrigation Efficiency in Egypt," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(04), pages 1-28, December.
    12. Osman, Rehab & Ferrari, Emanuele & McDonald, Scott, 2015. "Water Quality Assessment SAM/CGE and Satellite Accounts Integrated Framework," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204291, Agricultural Economics Society.
    13. Xiangzheng Deng & Fan Zhang & Zhan Wang & Xing Li & Tao Zhang, 2014. "An Extended Input Output Table Compiled for Analyzing Water Demand and Consumption at County Level in China," Sustainability, MDPI, vol. 6(6), pages 1-20, May.
    14. Osman, Rehab & Ferrari, Emanuele, 2019. "The Poverty and Distributional Impacts of Water Quality: A CGE-Micro Analysis for Egypt," Conference papers 333119, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Tewodros Negash Kahsay & Onno Kuik & Roy Brouwer & Pieter Zaag, 2018. "The Transboundary Impacts of Trade Liberalization and Climate Change on the Nile Basin Economies and Water Resource Availability," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 32(3), pages 935-947, February.
    16. Wolfgang Britz & Roberto Roson, 2018. "Exploring Long Run Structural Change with a Dynamic General Equilibrium Model," Working Papers 2018: 12, Department of Economics, University of Venice "Ca' Foscari".
    17. Siddig, Khalid & Basheer, Mohammed & Luckmann, Jonas & Grethe, Harald, 2019. "Long-term economy-wide impacts of the Grand Ethiopian Renaissance Dam on Sudan," Conference papers 333118, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    18. Nechifor, Victor & Winning, Matthew, 2017. "The impacts of higher CO2 concentrations over global crop production and irrigation water requirements," Conference papers 332837, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Souha El Khanji, 2017. "An exploration of the interaction between socio-economic productivity and water withdrawal," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(2), pages 653-677, April.
    20. Haqiqi, Iman & Hertel, Thomas W., 2016. "Decomposing Irrigation Water Use Changes in Equilibrium Models," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236185, Agricultural and Applied Economics Association.
    21. Fouda Ekobena, Par Simon Yannick, 2014. "Commerce intra-regional et croissance economique: quels enjeux pour la securite alimentaire dans lespace CEMAC?," Conference papers 332559, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    22. Britz, Wolfgang & Pérez-Dominguez, Ignacio & Narayanan, Gopalakrishnan Badri, 2015. "Analyzing Results from Agricultural Large-scale Economic Simulation Models: Recent Progress and the Way Ahead," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 64(02), June.

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    More about this item

    Keywords

    computable general equilibrium; irrigation; water policy;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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