The Economic Impact of Increased Water Demand in Australia: A Computable General Equilibrium Analysis

Qureshi, Muhammad Ejaz; Proctor, Wendy; Young, Mike; Wittwer, Glyn

doi:10.1111/j.1759-3441.2011.00160.x

Cited by 17 publications

(18 citation statements)

References 17 publications

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“…One is to take water as a production factor (substitutable by other production factors such as capital and labor) [14,25]. The other is to take it as an intermediate input (non-substitutable by capital or labor, Leontief relationship) [11,15,[33][34][35][36]. It is more important to analyze the specific case before choosing a method.…”

Section: The Cge Modelmentioning

confidence: 99%

Economic Impacts of Total Water Use Control in the Heihe River Basin in Northwestern China—An Integrated CGE-BEM Modeling Approach

Wang

Shi

et al. 2015

Sustainability

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This paper develops an integrated modeling approach combined with a top-down dynamic computable general equilibrium (CGE) model and a bottom-up bio-economic model (BEM) to study the economic impact of a total water use control policy in the Heihe river basin, northwestern China. The integrated CGE-BEM model is regionally disaggregated with a variety of crops and livestock, and includes the responses of farmers and consequent feedback effects in the regional economic system. The results show that under the total water use control scenario, the water use structure is changed and water use efficiency is improved. The total water use control policy has limited negative impact on the regional economic growth with only a slightly lower growth rate of 13.38% compared with a growth rate of 14% by 2020 under a business as usual water use scenario. However, the total water use control policy has significant negative impacts on several sectors, especially agriculture and food processing. It is expected cropping systems will change through a replacement of water-intensive crops with water-efficient crops. Farmers' incomes will decrease by 3.14%. In order to alleviate farmers' income loss and deal with water use conflicts across different sectors and regions, the promotion of migration of surplus labor OPEN ACCESSSustainability 2015, 7 3461 from agriculture to non-agricultural sectors and the improvement of water use efficiency in agriculture are needed.

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Section: The Cge Modelmentioning

confidence: 99%

Economic Impacts of Total Water Use Control in the Heihe River Basin in Northwestern China—An Integrated CGE-BEM Modeling Approach

Wang

Shi

et al. 2015

Sustainability

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“…For instance, Robinson et al (2012) analyzed a package of climate change adaptation options including infrastructural improvements and construction of water storage facilities under conditions of reduced water availability in Ethiopia. Qureshi et al (2012) analyzed the effects of water rights trading and desalination investment on water use, employment, sectoral economic output and interregional migration, in the context of growing water demand in Australia. The effects of a variety of changes in policy (including water taxation, liberalization of international trade, and irrigation efficiency improvement) and water supply on income, water use, virtual water flow, and welfare have been addressed by Berrittella et al (2007Berrittella et al ( , 2008aBerrittella et al ( , 2008b and Calzadilla et al (2010Calzadilla et al ( , 2011aCalzadilla et al ( , 2011b Although the core of the CGE model is often similar across studies, applications to water problems often require additional components to produce accurate representations of the behavior and responses of hydrological and biological systems.…”

Section: Cge Modelsmentioning

confidence: 99%

“…Other efforts have led to consideration of water use tradeoffs between the forestry and other production sectors (van Heerden et al 2008), between recreation and irrigation Seung et al 2000), as well as those induced by expansion of aquaculture production (Kaliba et al 2007). Poverty reduction (Kaliba et al 2007) and interregional migration (Qureshi et al 2012) due to change in water availability and water policies have also been addressed within the CGE framework.…”

Section: Cge Modelsmentioning

confidence: 99%

“…These integrated models allow analysis of the impacts of production decisions on ecological systems. The work has also been extended to include model subcomponents dealing with labor use and trade, which can be used for analysis of the impacts of water and economic policies on interregional migration and the flow of goods (Qureshi et al 2012).…”

Section: Economy-wide Hem Clustersmentioning

confidence: 99%

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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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“…Wittwer and Griffith modeled the economy-wide small regional effects of reduced water supply during periods of severe droughts in the Murray Darling basin [21]. Ejaz Qureshi et al explored the impact of increased population and water demand and reduced water supply on sectoral and regional output and employment in Australia [22].…”

Section: A Review On Economic Models Of Water Usementioning

confidence: 99%

Modeling the Impacts of Urbanization and Industrial Transformation on Water Resources in China: An Integrated Hydro-Economic CGE Analysis

Jiang

Liu

et al. 2014

Sustainability

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Pressure on existing water resources in China is expected to increase with undergoing rapid demographic transformation, economic development, and global climate changes. We investigate the economy-wide impacts of projected urban population growth and economic structural change on water use and allocation in China. Using a multi-regional CGE (Computable General Equilibrium) model, TERM (The Enormous Regional Model), we explore the implications of selected future water scenarios for China's nine watershed regions. Our results indicate that urbanization and industrial transformation in China will raise the opportunity cost of water use and increase the competition for water between non-agricultural users and irrigation water users. The growth in water demand for domestic and industrial uses reduces the amount of water allocated to agriculture, particularly lower-value and water-intensive field crops. As a response, farmers have the incentive to shift their agricultural operations from traditional field crop production to higher-value livestock or intensive crop production. In addition, our results suggest that growing water OPEN ACCESSSustainability 2014, 6 7587 demand due to urbanization and industrial transformation will raise the shadow price of water in all nine river basins. Finally, we find that national economic growth is largely attributable to urbanization and non-agricultural productivity growth.

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The Economic Impact of Increased Water Demand in Australia: A Computable General Equilibrium Analysis

Cited by 17 publications

References 17 publications

Economic Impacts of Total Water Use Control in the Heihe River Basin in Northwestern China—An Integrated CGE-BEM Modeling Approach

Economic Impacts of Total Water Use Control in the Heihe River Basin in Northwestern China—An Integrated CGE-BEM Modeling Approach

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

Modeling the Impacts of Urbanization and Industrial Transformation on Water Resources in China: An Integrated Hydro-Economic CGE Analysis

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