IDEAS home Printed from https://ideas.repec.org/p/cba/wpaper/wp1122.html
   My bibliography  Save this paper

‘A Systems Approach to Analyse the Impacts of Water Policy Reform in the Murray-Darling Basin: a conceptual and an analytical framework’

Author

Listed:
  • Maheshwar Rao

    (NATSEM, University of Canberra)

  • Robert Tanton

    (NATSEM, University of Canberra)

  • Yogi Vidyattama

    (NATSEM, University of Canberra)

Abstract

The water policy reform under the Murray-Darling Basin (MDB) Plan will have a range of implications for the ecology, the economy and the community of the Basin – given the interdependent nature of the three systems. In this paper, an integrative or a systems approach is proposed to analyse the impacts of water policy reform in the MDB. The first part of the paper focuses on developing a conceptual framework, which identifies the main interdependencies and interactions among the three systems in the MDB. The second part of the paper attempts to operationalize the conceptual framework by identifying the suitable analytical tools or models that link the three systems. The ecology is linked to the economy via the water policy reform, that is, the change in the quantity of water that flows from the ecology to the economy (ecology-economic nexus). The economy is linked to the social system via computable general equilibrium (CGE) and microsimulation models (economy-social/community nexus). Finally, social/community is linked to the ecological system via agent-based models to investigate emergent socio-ecological phenomena. The third part of the paper shows how all the models can be linked in a top down fashion to develop a operational analytical framework, as a starting to point to analyse the macro, sectoral and distributional impacts of the water policy reform in the MDB.

Suggested Citation

  • Maheshwar Rao & Robert Tanton & Yogi Vidyattama, 2013. "‘A Systems Approach to Analyse the Impacts of Water Policy Reform in the Murray-Darling Basin: a conceptual and an analytical framework’," NATSEM Working Paper Series 13/22, University of Canberra, National Centre for Social and Economic Modelling.
    • Handle: RePEc:cba:wpaper:wp1122
    as

    Download full text from publisher

    File URL: http://www.natsem.canberra.edu.au/files/download?id=1129
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. George Verikios & Xiao-guang Zhang, 2013. "The distributional effects of the Hilmer reforms on the Australian gas industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(2), pages 159-177, April.
    2. John Cockburn, 2002. "Trade Liberalisation and Poverty in Nepal: A Computable General Equilibrium Micro Simulation Analysis," CSAE Working Paper Series 2002-11, Centre for the Study of African Economies, University of Oxford.
    3. G. A. Meagher & Nisha Agrawal, 1986. "Taxation Reform and Income Distribution in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 19(3), pages 33-56, September.
    4. Buchholz, Thomas S. & Volk, Timothy A. & Luzadis, Valerie A., 2007. "A participatory systems approach to modeling social, economic, and ecological components of bioenergy," Energy Policy, Elsevier, vol. 35(12), pages 6084-6094, December.
    5. John Cockburn & Luc Savard & Luca Tiberti, 2015. "Macro-Micro Models," Cahiers de recherche 15-08, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    6. Luc Savard, 2003. "Poverty and Income Distribution in a CGE-Household Micro-Simulation Model: Top-Down/Bottom Up Approach," Cahiers de recherche 0343, CIRPEE.
    7. François Bourguignon & Anne-Sophie Robilliard & Sherman Robinson, 2003. "Representative versus real households in the macro-economic modeling of inequality," Working Papers DT/2003/10, DIAL (Développement, Institutions et Mondialisation).
    8. François Bourguignon & Maurizio Bussolo & Luis Pereira, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution," PSE-Ecole d'économie de Paris (Postprint) halshs-00754864, HAL.
    9. Lin Crase, 2012. "How Holistic Should Economic Measurement Be? A Cautionary Note on Valuing Ecosystem Services as Part of the Murray–Darling Basin Plan," Economic Papers, The Economic Society of Australia, vol. 31(2), pages 182-191, June.
    10. Jann Lay, 2010. "Sequential macro-micro modelling with behavioural microsimulations," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 24-34.
    11. John Cockburn & Erwin Corong & Caesar Cororaton, 2010. "Integrated Computable General Equilibrium (CGE) microsimulation approach," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 60-71.
    12. Selim Raihan, 2010. "Case Study: Welfare and poverty impacts of trade liberalization: a dynamic CGE microsimulation analysis," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 123-126.
    13. N. Hérault, 2006. "Building And Linking A Microsimulation Model To A Cge Model For South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 74(1), pages 34-58, March.
    14. Nicolas Hérault, 2010. "Sequential linking of Computable General Equilibrium and microsimulation models: a comparison of behavioural and reweighting techniques," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 35-42.
    15. Giulia Colombo, 2010. "Linking CGE and microsimulation models: a comparison of different approaches," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 72-91.
    16. George Verikios & Xiao-guang Zhang, 2012. "Microeconomic Reform and Income Distribution: The case of Australian Ports and Rail Freight Industries," Centre of Policy Studies/IMPACT Centre Working Papers g-230, Victoria University, Centre of Policy Studies/IMPACT Centre.
    17. John Creedy & Alan S. Duncan & Mark Harris & Rosanna Scutella, 2002. "Microsimulation Modelling of Taxation and the Labour Market," Books, Edward Elgar Publishing, number 2796.
    18. John Cockburn & Luc Savard & Luca Tiberti, 2014. "Macro-Micro Models," Contributions to Economic Analysis, in: Handbook of Microsimulation Modelling, volume 127, pages 275-304, Emerald Group Publishing Limited.
    19. Robert Tanton & Yogi Vidyattama & Justine McNamara & Quoc Ngu Vu & Ann Harding, 2009. "Old, Single and Poor: Using Microsimulation and Microdata to Analyse Poverty and the Impact of Policy Change among Older Australians," Economic Papers, The Economic Society of Australia, vol. 28(2), pages 102-120, June.
    20. Adams, Philip D. & Dixon, Peter B. & McDonald, Daina & Meagher, G. A. & Parmenter, Brian R., 1994. "Forecasts for the Australian economy using the MONASH model," International Journal of Forecasting, Elsevier, vol. 10(4), pages 557-571, December.
    21. repec:bla:ecorec:v:62:y:1986:i:179:p:427-41 is not listed on IDEAS
    22. Naqvi, Farzana & Peter, Matthew W, 1996. "A Multiregional, Multisectoral Model of the Australian Economy with an Illustrative Application," Australian Economic Papers, Wiley Blackwell, vol. 35(66), pages 94-113, June.
    23. Nicolas Herault, 2007. "Trade Liberalisation, Poverty and Inequality in South Africa: A Computable General Equilibrium‐Microsimulation Analysis," The Economic Record, The Economic Society of Australia, vol. 83(262), pages 317-328, September.
    24. Robert Tanton & Yogi Vidyattama & Binod Nepal & Justine McNamara, 2011. "Small area estimation using a reweighting algorithm," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 174(4), pages 931-951, October.
    25. repec:dau:papers:123456789/5130 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yogi Vidyattama & Maheshwar Rao & Itismita Mohanty & Robert Tanton, 2014. "Modelling the impact of declining Australian terms of trade on the spatial distribution of income," International Journal of Microsimulation, International Microsimulation Association, vol. 7(1), pages 100-126.
    2. Buyani Nkabinde & Lawrence Mpele Lekhanya & Nirmala Dorasamy, 2018. "The Rural Immigration Effects on Urban Service Delivery in South Africa (SA)," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 11-24.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van Ruijven, Bas J. & O’Neill, Brian C. & Chateau, Jean, 2015. "Methods for including income distribution in global CGE models for long-term climate change research," Energy Economics, Elsevier, vol. 51(C), pages 530-543.
    2. Andrew Feltenstein & Luciana Lopes & Janet Porras Mendoza & Sally Wallace, 2013. "“The Impact of Micro-simulation and CGE modeling on Tax Reform and Tax Advice in Developing Countries”: A Survey of Alternative Approaches and an Application to Pakistan," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1309, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    3. Colombo, Giulia, 2008. "Linking CGE and Microsimulation Models: A Comparison of Different Approaches," ZEW Discussion Papers 08-054, ZEW - Leibniz Centre for European Economic Research.
    4. Andreas Peichl, 2009. "The Benefits and Problems of Linking Micro and Macro Models — Evidence from a Flat Tax Analysis," Journal of Applied Economics, Taylor & Francis Journals, vol. 12(2), pages 301-329, November.
    5. Zhang, Xiao-Guang, 2016. "Solving a partial equilibrium model in a CGE framework: the case of a BMS model," Conference papers 332742, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Céline DE QUATREBARBES & Luc SAVARD & Dorothée BOCCANFUSO, 2011. "Can the removal of VAT Exemptions support the Poor? The Case of Niger," Working Papers 201106, CERDI.
    7. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2009. "Electricity Reforms In Mali: A Macro–Micro Analysis Of The Effects On Poverty And Distribution," South African Journal of Economics, Economic Society of South Africa, vol. 77(1), pages 127-147, March.
    8. Samir Cury & Euclides Pedrozo, 2016. "Cash Transfer Policies, Taxation and the Fall in Inequality in Brazil An Integrated Microsimulation-CGE Analysis [equilibrium model, microsimulation model, Brazil. Classification-JEL: C68, D58, I38," International Journal of Microsimulation, International Microsimulation Association, vol. 9(1), pages 55-85.
    9. James B Davies, 2009. "Combining microsimulation with CGE and macro modelling for distributional analysis in developing and transition countries," International Journal of Microsimulation, International Microsimulation Association, vol. 2(1), pages 49-56.
    10. Ole Boysen & Alan Matthews, 2008. "The Impact of Developed Country Agricultural Trade Liberalization on Poverty: A Survey," Working Papers hal-03416399, HAL.
    11. Andrew Feltenstein & Luciana Lopes & Janet Porras-Mendoza & Sally Wallace, 2014. "Modeling tax reform in developing countries," Chapters, in: Richard M. Bird & Jorge Martinez-Vazquez (ed.), Taxation and Development: The Weakest Link?, chapter 3, pages 69-102, Edward Elgar Publishing.
    12. Maurizio Bussolo & Rafael E De Hoyos & Denis Medvedev, 2010. "Economic growth and income distribution: linking macro-economic models with household survey data at the global level," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 92-103.
    13. George Verikios & Xiao-guang Zhang, 2010. "Structural Change in the Australian Electricity Industry During the 1990s and the Effect on Household Income Distribution," Centre of Policy Studies/IMPACT Centre Working Papers g-207, Victoria University, Centre of Policy Studies/IMPACT Centre.
    14. George Verikios & Xiao-guang Zhang, 2016. "Structural change and income distribution: the case of Australian telecommunications," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 21(4), pages 549-570, October.
    15. Peichl, Andreas, 2008. "The benefits of linking CGE and Microsimulation Models - Evidence from a Flat Tax analysis," FiFo Discussion Papers - Finanzwissenschaftliche Diskussionsbeiträge 08-6, University of Cologne, FiFo Institute for Public Economics.
    16. Zhang, Xiao-Guang, 2015. "Incorporating household survey data into a CGE model," Conference papers 332628, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Liyanaarachchi, Tilak S. & Naranpanawa, Athula & Bandara, Jayatilleke S., 2016. "Impact of trade liberalisation on labour market and poverty in Sri Lanka. An integrated macro-micro modelling approach," Economic Modelling, Elsevier, vol. 59(C), pages 102-115.
    18. N. Hérault, 2006. "Building And Linking A Microsimulation Model To A Cge Model For South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 74(1), pages 34-58, March.
    19. Rana Hendy & Chahir Zaki, 2013. "Assessing the Effects of Trade Liberalization on Wage Inequalities in Egypt: A Microsimulation Analysis," The International Trade Journal, Taylor & Francis Journals, vol. 27(1), pages 63-104, March.
    20. Horváth, Michal & Senaj, Matúš & Siebertová, Zuzana & Švarda, Norbert & Valachyová, Jana, 2019. "The end of the flat tax experiment in Slovakia: An evaluation using behavioural microsimulation in a dynamic macroeconomic framework," Economic Modelling, Elsevier, vol. 80(C), pages 171-184.

    More about this item

    Keywords

    Murray-Darling Basin plan; water policy reform; systems approach; distributional analyses; computable general equilibrium; spatial microsimulation; microsimulation;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I20 - Health, Education, and Welfare - - Education - - - General
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cba:wpaper:wp1122. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Trueman (email available below). General contact details of provider: https://edirc.repec.org/data/natseau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.