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The Poverty and Distributional Impacts of Water Quality: A CGE-Micro Analysis for Egypt

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  • Osman, Rehab
  • Ferrari, Emanuele

Abstract

Exposure to contaminated food and water-borne diseases are common in Egypt. Deteriorating water quality has been an obstacle to the development of agricultural sector, where “[c]ontamination rates have reached unacceptable levels in some agricultural areas and have had negative effects on the ability of these areas to produce safe food acceptable to local inhabitants and suitable to export”, (MALR, 2009, p. 45). The Ministry of Water Resources and Irrigation (MWRI) estimates annual cost of using low quality water to be 1.8% of GDP (MWRI, 2005a). The study calibrates the single-country Computable General Equilibrium (CGE) STatic Applied General Equilibrium (STAGE 2) model to an extended and updated version of a Social Accounting Matrix (SAM) for Egypt 2012/13. The SAM has detailed accounts for the Egyptian agricultural and irrigation systems. Water quality indicators are incorporated using satellite accounts, allowing for modelling various agronomic features; e.g. water/land salinity, soil fertility and agricultural productivity. Furthermore, the SAM is augmented with multiple representative household types. The micro model is estimated based on the most recent household survey data for Egypt (i.e. Harmonized Household Income and Expenditure Surveys (HHIES) 2015)) (OAMDI, Harmonized Household Income and Expenditure Surveys (HHIES), 2017); and the most recent labour force survey data for Egypt (i.e. Harmonized Labor Force Surveys (HLFS) 2016), (OAMDI, Harmonized Labor Force Surveys (HLFS), 2017).

Suggested Citation

  • 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.
    • Handle: RePEc:ags:pugtwp:333119
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    References listed on IDEAS

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    1. Rashid Hassan & James Thurlow, 2011. "Macro–micro feedback links of water management in South Africa: CGE analyses of selected policy regimes," Agricultural Economics, International Association of Agricultural Economists, vol. 42(2), pages 235-247, March.
    2. 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.
    3. 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).
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    6. 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.
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