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Combining the best of two worlds - An integrative water modelling approach

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Listed:
  • Luckmann, Jonas
  • Reznik, Ami
  • Feinerman, Eli
  • Finkelshtain, Israel
  • Grethe, Harald
  • Kan, Iddo

Abstract

This paper presents a generic and flexible modelling approach combining a water focused computable general equilibrium model (STAGE_W) with a non-linear mathematical programming model for the water sector (MYWAS). The advantage of this setup is that it allows to consider economy-wide effects of changes in the water sector, while considering topography and infrastructural limitations of water supply which affect regional provision costs. Further our approach considers a flexible set of different water qualities. The two models are linked by exchanging changes of result variable vectors in an iterative process. We apply our approach to study the case of the water-energy-food nexus in Israel. A large share of the potable water consumption in Israel stems from desalination and wastewater recycling. Although both activities are considered as viable means to reduce pressure on the already overused aquifers, they are highly energy intensive and thus expansive. Recently, three large gas fields have been discovered in the Mediterranean Sea close to the Israeli coast. Their exploitation is expected to considerably decrease domestic energy prices. This in turn will make the production of energy-intensive commodities including desalinated and recycled water cheaper. The economy wide effects of this shock are analyzed in this paper.

Suggested Citation

  • Luckmann, Jonas & Reznik, Ami & Feinerman, Eli & Finkelshtain, Israel & Grethe, Harald & Kan, Iddo, 2016. "Combining the best of two worlds - An integrative water modelling approach," Conference papers 332758, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
  • Handle: RePEc:ags:pugtwp:332758
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    References listed on IDEAS

    as
    1. Sherman Robinson & Arthur Gueneau, 2013. "An Integrated Modeling Framework for Analyzing Water-Economy Links," EcoMod2013 5499, EcoMod.
    2. Siddig, Khalid & Grethe, Harald, 2014. "No more gas from Egypt? Modeling offshore discoveries and import uncertainty of natural gas in Israel," Applied Energy, Elsevier, vol. 136(C), pages 312-324.
    3. Palatnik, Ruslana Rachel & Baum, Zvi & Kan, Iddo & Rapaport-Rom, Mickey, 2016. "Economic Impacts of Water Scarcity under Diverse Water Salinities," Conference papers 330173, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Zvi Baum & Ruslana Rachel Palatnik & Iddo Kan & Mickey Rapaport-Rom, 2016. "Economic Impacts of Water Scarcity Under Diverse Water Salinities," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 1-22, March.
    5. Reznik, Ami & Huber-Lee, Annette & Joyce, Brian & Feinerman, Eli & Finkelshtain, Israel & Kan, Iddo & Fisher, Franklin, 2014. "Understanding the Economics of Water in Israel: the Multi-Year Water Allocation System Model," Discussion Papers 290034, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
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