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Water scarcity and the impact of improved irrigation management: A CGE analysis

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  • Calzadilla, Alvaro
  • Rehdanz, Katrin
  • Tol, Richard S.J.

Abstract

We use the new version of the GTAP-W model to analyze the economy-wide impacts of enhanced irrigation efficiency. The new production structure of the model, which introduces a differentiation between rainfed and irrigated crops, allows a better understanding of the use of water resources in agricultural sectors. The results indicate that a water policy directed to improvements in irrigation efficiency in water-stressed regions is not beneficial for all. For water-stressed regions the effects on welfare and demand for water are mostly positive. For non-water scarce regions the results are more mixed and mostly negative. Global water savings are achieved. Not only regions where irrigation efficiency changes are able to save water, but also other regions are pushed to conserve water.

Suggested Citation

  • Calzadilla, Alvaro & Rehdanz, Katrin & Tol, Richard S.J., 2008. "Water scarcity and the impact of improved irrigation management: A CGE analysis," Conference papers 331788, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331788
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    Cited by:

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    3. Magdalena ZACHLOD-JELEC & Piotr KARP, 2010. "Responses of the Polish Economy to Demand and Supply Shocks under Alternative Fiscal Rules," EcoMod2010 259600174, EcoMod.
    4. Ouraich, Ismail & Tyner, Wallace E., 2014. "Morocco's unique situation in the climate change arena: An analysis of climate forecasts and their link to agriculture," WIDER Working Paper Series 088, World Institute for Development Economic Research (UNU-WIDER).
    5. Ørum, Jens Erik & Boesen, Mads Vejlby & Jovanovic, Zorica & Pedersen, Søren Marcus, 2010. "Farmers' incentives to save water with new irrigation systems and water taxation--A case study of Serbian potato production," Agricultural Water Management, Elsevier, vol. 98(3), pages 465-471, December.
    6. Dritan Osmani, "undated". "A note on optimal transfer schemes, stable coalition for environmental protection and joint maximization assumption," Working Papers FNU-176, Research unit Sustainability and Global Change, Hamburg University.
    7. Calzadilla, Alvaro & Zhu, Tingju & Rehdanz, Katrin & Tol, Richard S.J. & Ringler, Claudia, 2013. "Economywide impacts of climate change on agriculture in Sub-Saharan Africa," Ecological Economics, Elsevier, vol. 93(C), pages 150-165.
    8. Ouraich, Ismail & Tyner, Wallace E., 2014. "Climate change impacts on Moroccan agriculture and the whole economy: An analysis of the impacts of the Plan Maroc Vert in Morocco," WIDER Working Paper Series 083, World Institute for Development Economic Research (UNU-WIDER).
    9. Ouraich, Ismail & Tyner, Wallace E., 2011. "A CGE Analysis of Economy-wide Impacts of Climate Change on Agriculture in Morocco," 2011 Conference: Impacts of Climate Change on Agriculture, December 6-7, 2011, Rabat, Morocco 188121, Moroccan Association of Agricultural Economics (AMAEco).
    10. Nicholas Kilimani, 2014. "Water Taxation and the Double Dividend Hypothesis," Working Papers 201451, University of Pretoria, Department of Economics.
    11. Oliva, Roberto D. Ponce & Moscoso, Ramiro F. Parrado, 2012. "Economy-wide Impacts of Climate Change on Water Resources in Africa: A CGE Approach," Conference papers 332235, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Na Li & Xiaojun Wang & Minjun Shi & Hong Yang, 2015. "Economic Impacts of Total Water Use Control in the Heihe River Basin in Northwestern China—An Integrated CGE-BEM Modeling Approach," Sustainability, MDPI, vol. 7(3), pages 1-19, March.
    13. Alvaro Calzadilla & Tingju Zhu & Katrin Rehdanz & Richard S.J. Tol & Claudia Ringler, "undated". "Economy-wide Impacts of Climate on Agriculture in Sub-Saharan Africa," Working Papers FNU-170, Research unit Sustainability and Global Change, Hamburg University.
    14. Descheemaeker, K. & Bunting, S. W. & Bindraban, P. & Muthuri, C. & Molden, D. & Beveridge, M. & van Brakel, Martin & Herrero, M. & Clement, Floriane & Boelee, Eline & Jarvis, D. I., 2013. "Increasing water productivity in Agriculture," Book Chapters,, International Water Management Institute.
    15. Amolegbe, Khadijat Busola & Fontep, Eugenie Rose & Ahodode, Bernadin Géraud Comlan & Pagal, Emmanuelle Dorcas Mbanga & Ardelkrim, Araar, 2023. "Gendered Effects of Crop Diversification and Climate Shocks on Household Food Security Status in Nigeria," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334551, Agricultural Economics Society - AES.
    16. Brockmeier, M. & Urban, K. & Yang, F., 2013. "Einfluß ökonomischer und politischer Faktoren auf den Handel in einer globalisierten Welt," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 48, March.
    17. Nana Yamoah, A.-A., 2018. "Who Benefits, Who Loses and What can be done? - An Assessment of the Economic Impacts of Climate Change with and without Adaptation on Smallholder Farmers in Ghana," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277224, International Association of Agricultural Economists.
    18. Cardenete, Manuel Alejandro & Hewings, Geoffrey, 2011. "Water Price and Water Sectoral Reallocation in Andalusia. A Computable General Equilibrium Approach1," 2011 Conference: Impacts of Climate Change on Agriculture, December 6-7, 2011, Rabat, Morocco 188124, Moroccan Association of Agricultural Economics (AMAEco).

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    More about this item

    Keywords

    Resource /Energy Economics and Policy; Agricultural and Food Policy;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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