Economic impacts of regional water scarcity in the São Francisco River Basin, Brazil: an application of a linked hydro-economic model

Torres, Marcelo; Maneta, Marco P.; Howitt, Richard E.; Vosti, Stephen A.; Wallender, W. W.; Bassoi, L. H.

doi:10.1017/s1355770x11000362

Cited by 35 publications

(19 citation statements)

References 23 publications

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“…PMP has also been used to evaluate economic and spatial impacts of scarcity and to assess policies relating irrigation agriculture in México and in other countries [55][56][57][58]. Likewise, new methodologies and variations that use PMP have been developed [59,60] to improve some shortcomings of the methodology, such as maximum entropy [61].…”

Section: Methodsmentioning

confidence: 99%

Insights from a Calibrated Optimization Model for Irrigated Agriculture under Drought in an Irrigation District on the Central Mexican High Plains

Rodríguez-Flores

Medellín–Azuara

Alcalá

et al. 2019

Water

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An economic assessment of the value of agricultural water was conducted at the subdistrict (module) level within the Alto Rio Lerma Irrigation District 011 in Guanajuato, Mexico. The assessment employed positive mathematical programming (PMP), a deductive valuation methodology, which self-calibrates to baseline production input use. Production and water use values for the 2016–2017 agricultural year, and the averages of the 2014 to 2017 agricultural years for yields, agricultural commodity prices, and production costs were employed disaggregated per irrigation module. Results indicate that the economic value of water is 1.8 to 4.7 times higher than the rate currently paid by users, about US$7.89 dam−3 (cubic decameters). The differences among the rate and shadow prices could create a pricing water policy focused on water conservation and its efficient use. This work also conducts an assessment of a formal water market in the irrigation district as way to achieve economically efficient water allocations and reduce the potential economic impacts of water shortage during droughts. Modeling results show that an active water market would allow the irrigation district to adapt to scarcer water conditions by shifting cropping patterns and trading water among subdistricts, by reducing loss in net income at the irrigation district. A successful implementation of this system would be feasible, provided that the irrigation modules are able to import and export water, under water scarcity scenarios considered for the water market model. Potential distributional effects and policy insights from this assessment are discussed.

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Section: Methodsmentioning

confidence: 99%

Insights from a Calibrated Optimization Model for Irrigated Agriculture under Drought in an Irrigation District on the Central Mexican High Plains

Rodríguez-Flores

Medellín–Azuara

Alcalá

et al. 2019

Water

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“…Particularly, the impact of the expected increase of world market prices for biofuel commodities on sugarcane production and profits of small and large farms (Torres et al 2012) and soybean land use changes under drier conditions (Maneta et al 2009) has been studied. Unsurprisingly owing to the growing interest in biofuels in Brazil and the US, much of this work focuses on these and similar regions (Torres et al 2012;Maneta et al 2009). …”

Section: Node-based River Basin Hemsmentioning

confidence: 99%

“…Price and supply relationships as well as nonlinear production costs functions are considered in the model. The basic model has also been adapted for application to the San Francisco River Basin in Brazil (Maneta et al 2009;Torres et al 2012). It includes separate production functions for irrigated and rain-fed crops, and does accommodate substitution among capital, labor, and water use inputs, using a CES formulation.…”

Section: River Basin Hem Clustersmentioning

confidence: 99%

Review of hydro-economic models to address river basin management problems: structure, applications and research gaps

Bekchanov¹,

Sood²,

Jeuland³

2015

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1671985 2015 Working PapersThe publications in this series record the work and thinking of IWMI researchers, and knowledge that the Institute's scientific management feels is worthy of documenting. This series will ensure that scientific data and other information gathered or prepared as a part of the research work of the Institute are recorded and referenced. Working Papers could include project reports, case studies, conference or workshop proceedings, discussion papers or reports on progress of research, country-specific research reports, monographs, etc. Working Papers may be copublished, by IWMI and partner organizations.Although most of the reports are published by IWMI staff and their collaborators, we welcome contributions from others. Each report is reviewed internally by IWMI staff. The reports are published and distributed both in hard copy and electronically (www.iwmi.org) and where possible all data and analyses will be available as separate downloadable files. Reports may be copied freely and cited with due acknowledgment. About IWMIIWMI's mission is to provide evidence-based solutions to sustainably manage water and land resources for food security, people's livelihoods and the environment. IWMI works in partnership with governments, civil society and the private sector to develop scalable agricultural water management solutions that have a tangible impact on poverty reduction, food security and ecosystem health. IWMI Working Paper 167 Review of Hydro-economic Models to Address River

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“…The mismatched water resource and socio-economic distribution has cost the region ecologically, environmentally and economically and has hindered regional sustainability. Like any other regions in the world that face water scarcity [6][7][8][9][10], the challenge of economic development and water shortage in Beijing, Tianjin and Hebei has received on-going concern [11][12][13][14][15][16][17][18][19].…”

Section: Introductionmentioning

confidence: 99%

Industrial Structure of Beijing-Tianjin-Hebei Region: Multiplier Analysis Based on a Water-Incorporated Social Accounting Matrix

Lin

Sha

Yan

et al. 2016

Preprint

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The integrated and coordinated development of Beijing-Tianjin-Hebei region has been put forward as a national strategy. Yet the present regional economy is facing not only the imbalance between the three provincial administrative districts but also severe water scarcity. The purpose of this study is to investigate the regional economic structure with focus on the impacts of water resources on the regional economic development. This study compiles a social accounting matrix (SAM) for the Beijing-Tianjin-Hebei region incorporating water both as a prime factor of production and a production sector. The regional SAM (SAMBTHW) is further applied to the multiplier model to analyze the effects of the regional water sector on the other accounts. The results show that 1) the regional water sector has limited effects on the regional economic output and on the other sectors, and 2) the region has a relatively reasonable economic structure regarding water use, but 3) this economic structure shows labor-and capital-intensive features rather than technological intensity. The policy implication of our findings is that the integration efforts in the Beijing-Tianjin-Hebei region, which aimed at alleviating the stress from water scarcity and increasing regional sustainability, should concentrate on upgrading industrial structure with technological advancement.

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Economic impacts of regional water scarcity in the São Francisco River Basin, Brazil: an application of a linked hydro-economic model

Cited by 35 publications

References 23 publications

Insights from a Calibrated Optimization Model for Irrigated Agriculture under Drought in an Irrigation District on the Central Mexican High Plains

Insights from a Calibrated Optimization Model for Irrigated Agriculture under Drought in an Irrigation District on the Central Mexican High Plains

Review of hydro-economic models to address river basin management problems: structure, applications and research gaps

Industrial Structure of Beijing-Tianjin-Hebei Region: Multiplier Analysis Based on a Water-Incorporated Social Accounting Matrix

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