Economic Implications of Policy Restrictions on Water Withdrawals From Surface and Underground Sources

López‐Morales, Carlos A.; Duchin, Faye

doi:10.1080/09535314.2014.980224

Cited by 27 publications

(14 citation statements)

References 28 publications

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“…This means that implicitly different ways of dealing with comparative advantage and scarcity were dealt with for different combinations of factors and/or technologies. In this regard, in many studies with WTM/RCOT different configurations or conceptualizations of the different factors and/or technologies [48][49][50][51][52][53][54][55] have been used, mostly without explicitly stating these differences (i.e., which factors were shared and which ones were technology specific) and the implications of this. In [26], furthermore, it was shown how technical and economic changes can impact the overall reserve estimates.…”

Section: Selected Issues In the Literature On Wtm Water And Dealing mentioning

confidence: 99%

Theoretical and Empirical Characterization of Water as a Factor: Examples and Related Issues with the World Trade Model

Cazcarro

Steenge

2021

Water

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This article originates from the theoretical and empirical characterization of factors in the World Trade Model (WTM), see Duchin (2005). It first illustrates the usefulness of this type of model for water research to address policy questions related to virtual water trade, water constraints and water scarcity. It also illustrates the importance of certain key decisions regarding the heterogeneity of water and its relation to the technologies being employed and the prices obtained. With regard to WTM, the global economic input–output model in which multiple technologies can produce a “homogeneous output”, Steenge et al. (2018) showed that two different mechanisms should be distinguished by which multiple technologies can arise, i.e., from “technology-specific” or from “shared” factors, which implies a mechanism-specific set of prices, quantities and rents. We discuss and extend these characterizations, notably in relation to the real-world characterization of water as a factor (for which we use the terms technology specific, fully shared and “mixed”). We propose that the presence of these separate mechanisms results in the models being sensitive to relatively small variations in specific numerical values. To address this sensitivity, we suggest a specific role for specific (sub)models or key choices to counter unrealistic model outcomes. To support our proposal we present a selection of simulations for aggregated world regions, and show how key results concerning quantities, prices and rents can be subject to considerable change depending on the precise definitions of resource endowments and the technology-specificity of the factors. For instance, depending on the adopted water heterogeneity level, outcomes can vary from relatively low-cost solutions to higher cost ones and can even reach infeasibility. In the main model discussed here (WTM) factor prices are exogenous, which also contributes to the overall numerical sensitivity of the model. All this affects to a large extent our interpretation of the water challenges, which preferably need to be assessed in integrated frameworks, to account for the main socioeconomic variables, technologies and resources.

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Section: Selected Issues In the Literature On Wtm Water And Dealing mentioning

confidence: 99%

Theoretical and Empirical Characterization of Water as a Factor: Examples and Related Issues with the World Trade Model

Cazcarro

Steenge

2021

Water

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“…Liu et al [41] applied an IO-LP approach to estimate water shadow prices for nine Chinese water basins. López-Morales and Duchin [42,43] applied an IO-LP approach (based on the World Trade Model, WTM) to 13 hydroeconomic regions in Mexico with the aim of minimizing factor use to satisfy final demand. López-Morales and Duchin [42] defined and quantified sustainable endowments of water under different scenarios relating to water withdrawals.…”

Section: Previous Economic Studiesmentioning

confidence: 99%

“…While this is a weakness of the methodology, it should be balanced against the advantage that it is a simple model that allows policy-makers to easily implement it for short-term assessments (which is most relevant during a drought event). Some approaches like the Rectangular Choice of Technology model allow for a choice among technologies [43]. However, in this research we assume that technology changes are only expected in the mid-and long-run, depending on the persistence of droughts.…”

Section: Generalized Input-output Optimization Modelmentioning

confidence: 99%

A Linear Programming Approach to Water Allocation during a Drought

Decker

2018

Water

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The economic impacts of a drought depend critically on how water is allocated to different users. Choices as to water allocation can often reflect wider economic policy, environmental, and social goals and constraints. This research applies a multi-objective linear programming input-output method to determine a suite of water supply allocations for different economic sectors in a drought. Using the UK as a case study, we develop estimates of the minimum potential economic impact associated with different water allocations under a range of climate and policy scenarios. Estimates of total impact range from −0.16% to −1.48% of total output depending on the drought scenarios tested. The approach offers the flexibility to set different policy objectives in terms of water allocations/ restrictions, employment or a range of other objectives, including constraints to rebalance the economic system. In allowing for the inclusion of other economic, social, and environmental constraints, it provides a framework for policymakers to assess how water allocation decisions interact with other policy goals to determine the economic impacts of a drought. Challenging decisions about how to allocate water during a drought are likely to remain important in the future.

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“…When the RCOT logic is included within the WTM [36], the resulting framework provides a realistically broad set of technology choices, namely among different options within each region as well as across all regions. The WTM and the RCOT model have been implemented in a variety of empirical inquiries regarding specific aspects of sustainable development [37][38][39][40][41][42][43][44][45][46].…”

Section: Comparative Advantagementioning

confidence: 99%

Resources for Sustainable Economic Development: A Framework for Evaluating Infrastructure System Alternatives

Duchin

2017

Sustainability

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Abstract:We are at an early stage of a massive global build-up of public infrastructure. Long lifetimes, high money costs and resource-intensity, and the rippling effects of the built environment on all aspects of daily life call for informed public conversation about the available choices before they become a fait accompli. Substantial literatures address the phenomenon in terms of economic development, resource scarcities, impacts on climate and ecosystems, technological options, human rights, funding sources, system governance, inter-governmental agreements. This paper describes a modeling framework that integrates some of these concerns about the differential impacts of large-scale centralized infrastructure systems, smaller-scale decentralized systems, and hybrid combinations. Building on existing collaborations between economists and engineers, the paper proposes a case-study research strategy to organize new types of technical information to supplement existing databases of the world economy. The paper describes needed model extensions to estimate money costs, resource requirements, resource recovery potential, and jobs and livelihoods under alternative infrastructure assumptions. The agenda supports the Sustainable Development Goals (SDGs) by identifying and evaluating globally relevant alternative infrastructure designs. The SDG process, in turn, provides both the global network and the concern to promote local development to which the proposed effort aims to contribute.

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Economic Implications of Policy Restrictions on Water Withdrawals From Surface and Underground Sources

Cited by 27 publications

References 28 publications

Theoretical and Empirical Characterization of Water as a Factor: Examples and Related Issues with the World Trade Model

Theoretical and Empirical Characterization of Water as a Factor: Examples and Related Issues with the World Trade Model

A Linear Programming Approach to Water Allocation during a Drought

Resources for Sustainable Economic Development: A Framework for Evaluating Infrastructure System Alternatives

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