Impact of water price reform on water conservation and economic growth in China

Jing, Zhao; Ni, Hongzhen; Peng, Xiujian; Li, Jifeng; Chen, Genfa; Liu, Jinhua

doi:10.1016/j.eap.2016.06.003

Cited by 32 publications

(26 citation statements)

References 15 publications

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“…With constant elastic transformation equation (CET), foreign trade can be described as the distribution of products in domestic markets and exports optimized to maximize the export product margin in the model [18]. The model assumes that the export demand is the inverted function of the price with foreign currency pricing, which is described by a downward sloping curve of the fixed price elasticity [19].…”

Section: Foreign Tradementioning

confidence: 99%

Assessment of the Socio-Economic Impact of a Water Diversion Project for a Water-Receiving Area

Peng¹,

Yin²,

Zhang³

et al. 2020

Pol. J. Environ. Stud.

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Water is the foundation and lifeblood of social economic development and a healthy ecological system, with about 90% of global economic activities depending on water [1]. Water resources provide the means of production and means of livelihood. It is the motive force of economic development and the security of social progress. For a country, water scarcity due to the cumulative effects of various drivers can make food and energy security very uncertain even within one year [2].

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Section: Foreign Tradementioning

confidence: 99%

Assessment of the Socio-Economic Impact of a Water Diversion Project for a Water-Receiving Area

Peng¹,

Yin²,

Zhang³

et al. 2020

Pol. J. Environ. Stud.

Self Cite

View full text Add to dashboard Cite

show abstract

“…In the past, this type of model has been used to identify key water using sectors of the economy (Duarte et al, 2002), and the economic impacts of both technical improvements in water use and water price increases (Llop, 2008). More recently, computable general equilibrium models have been used to analyze the linkages between water prices, water conservation, and economic growth (Zhao et al, 2016). IMPLAN-based IO data have also been used to estimate the regional economic impacts of water cooperatives (Deller et al, 2009) and to estimate the employment impacts of recreational water use along the Colorado River (Douglas and Harpman, 1995).…”

Section: Input-output Datamentioning

confidence: 99%

“…While the impact of consumer spending in response to recessions has received research attention (Frank et al, 2010;Kamakura and Yuxing Du, 2011), there does not appear to be related literature on fluctuations in consumer spending with respect to changing water prices. Recent work, focused on China, utilized computable general equilibrium (CGE) models to analyze how water prices impact water conservation and economic growth (Zhao et al, 2016). However, there do not appear to be any studies related to water prices, changes in household spending patterns, and economic impacts at the regional level.…”

Section: Introductionmentioning

confidence: 99%

A Multi-Regional Input-Output (MRIO) Analytical Framework for Assessing the Regional Economic Impacts of Rising Water Prices

Credit¹,

Mack²,

Wrase³

2019

Review of Regional Studies

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Understanding the regional economic implications of rising water and wastewater services is important, because these services are household necessities. To date, however, there are few (if any) studies examining the link between water costs and indicators of economic vitality such as jobs, output, and regional income. To advance work on this particular topic, this paper proposes a novel methodology that estimates changes in household spending information from the Consumer Expenditure Survey (CES) for a particular change in water prices. This vector of final demand changes is then linked to multi-regional input-output (MRIO) models to estimate the regional economic impacts associated with changes in consumer spending patterns. To demonstrate this methodology, three water price increase scenarios are derived, and associated changes in final demand estimated.

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“…Theoretically, water price should be determined based on both the supply and demand of water resources under perfect market conditions, and thus measure the real value of water resources. However, in reality, water price usually deviates from its real value, since it is top-down administratively determined, rather than on the market [18]. As such, the water shadow price is defined as the marginal contribution of unit water resources to social and economic development after the optimized allocation, which makes it a scientific and reasonable measure of the real value and scarcity of water resources [19].…”

mentioning

confidence: 99%

Restrictive Effects of Water Scarcity on Urban Economic Development in the Beijing-Tianjin-Hebei City Region

Zhang

Shi

2019

Sustainability

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This study provides a scientific assessment of water scarcity in the Beijing-Tianjin-Hebei (BTH) city region and investigates its restrictive effects on urban economic development by quantifying economic loss caused by water scarcity based on an input–output optimization model. The results show that the water scarcity reflected by shadow prices has significant sectoral and regional heterogeneities. Southern Hebei faces the most severe water scarcity in the BTH city region and the situation is worsening. Water scarcity is shown to have a negative impact on the economy of the BTH city region that amounts to CNY 270.02 billion. Hebei has the largest potential economic loss caused by water scarcity, especially in southern Hebei, the potential GDP (gross domestic product) of which is decreased by 6.2%. This study also points out that the water scarcity in the BTH city region is underestimated in terms of actual water prices, and the scarcity of agricultural water use is mostly underestimated. The results contribute to a deeper understanding of the restrictive impact of water scarcity on regional economic development, and thus provide a scientific reference for policymaking in the BTH city region.

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Impact of water price reform on water conservation and economic growth in China

Cited by 32 publications

References 15 publications

Assessment of the Socio-Economic Impact of a Water Diversion Project for a Water-Receiving Area

Assessment of the Socio-Economic Impact of a Water Diversion Project for a Water-Receiving Area

A Multi-Regional Input-Output (MRIO) Analytical Framework for Assessing the Regional Economic Impacts of Rising Water Prices

Restrictive Effects of Water Scarcity on Urban Economic Development in the Beijing-Tianjin-Hebei City Region

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