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Assessing the economic impact of North China's water scarcity mitigation strategy: a multi-region, water-extended computable general equilibrium analysis

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  • Changbo Qin
  • Z.(Bob) Su
  • Hans Th.A. Bressers
  • Yangwen Jia
  • Hao Wang

Abstract

This paper describes a multi-region computable general equilibrium model for analyzing the effectiveness of measures and policies for mitigating North China's water scarcity with respect to three different groups of scenarios. The findings suggest that a reduction in groundwater use would negatively affect economic growth and household incomes. A planned water-transfer project would improve economic development and reduce the over-exploitation of local water resources, while water demand management policies would improve water-use efficiency through reallocating water to those sectors having a higher marginal product value. Several important policy implications are drawn from these findings.

Suggested Citation

  • Changbo Qin & Z.(Bob) Su & Hans Th.A. Bressers & Yangwen Jia & Hao Wang, 2013. "Assessing the economic impact of North China's water scarcity mitigation strategy: a multi-region, water-extended computable general equilibrium analysis," Water International, Taylor & Francis Journals, vol. 38(6), pages 701-723, October.
    • Handle: RePEc:taf:rwinxx:v:38:y:2013:i:6:p:701-723
    DOI: 10.1080/02508060.2013.823070
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    References listed on IDEAS

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    1. Oecd, 2009. "Climate Change and Africa," OECD Journal: General Papers, OECD Publishing, vol. 2009(1), pages 5-35.
    2. Fang, Xiangming & Roe, Terry L. & Smith, Rodney B.W., 2006. "Water Shortages, Water Allocation and Economic Growth: The Case of China," Conference Papers 6629, University of Minnesota, Center for International Food and Agricultural Policy.
    3. Xiao-guang Zhang, 2006. "Armington Elasticities and Terms of Trade Effects in Global CGE Models," Staff Working Papers 0601, Productivity Commission, Government of Australia.
    4. Juana, James S. & Strzepek, Kenneth M. & Kirsten, Johann F., 2009. "The Socio-Economic Consequences Of The Impact Of Climate Change On Water Resources In South Africa," 2009 Conference, August 16-22, 2009, Beijing, China 51927, International Association of Agricultural Economists.
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    Cited by:

    1. Dennis Wichelns, 2015. "Water productivity and water footprints are not helpful in determining optimal water allocations or efficient management strategies," Water International, Taylor & Francis Journals, vol. 40(7), pages 1059-1070, November.
    2. Khampheng Boudmyxay & Shuai Zhong & Lei Shen, 2019. "Designing Optimum Water-Saving Policy in China Using Quantity and Price Control Mechanisms," Sustainability, MDPI, vol. 11(9), pages 1-20, May.
    3. Yuanjie Li & Zhuoying Zhang & Minjun Shi, 2019. "Restrictive Effects of Water Scarcity on Urban Economic Development in the Beijing-Tianjin-Hebei City Region," Sustainability, MDPI, vol. 11(8), pages 1-23, April.

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