IDEAS home Printed from https://ideas.repec.org/p/urv/wpaper/2072-3681.html
   My bibliography  Save this paper

Economic impacts of alternative water policy scenarios in the Spanish production system: an input-output analysis

Author

Listed:
  • Llop Llop, Maria

Abstract

The objective of this paper is to analyse the economic impacts of alternative water policies implemented in the Spanish production system. The methodology uses two versions of the input-output price model: a competitive formulation and a mark-up formulation. The input-output framework evaluates the impact of water policy measures on production prices, consumption prices, intermediate water demand and private welfare. Our results show that a tax on the water used by sectors considerably reduces the intermediate water demand, and increases the production and consumption prices. On the other hand, according to Jevons' paradox, an improvement in technical efficiency, which leads to a reduction in the water requirements of all sectors and an increase in water production, increases the amount of water consumed. The combination of a tax on water and improved technical efficiency takes the pressure off prices and significantly reduces intermediate water demand. JEL Classification: C67 ; D57 ; Q25. Keywords: Production prices; Consumption prices; Water uses; Water policy; Water taxation.

Suggested Citation

  • Llop Llop, Maria, 2006. "Economic impacts of alternative water policy scenarios in the Spanish production system: an input-output analysis," Working Papers 2072/3681, Universitat Rovira i Virgili, Department of Economics.
  • Handle: RePEc:urv:wpaper:2072/3681
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/2072/3681
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Garcia, Serge & Reynaud, Arnaud, 2004. "Estimating the benefits of efficient water pricing in France," Resource and Energy Economics, Elsevier, vol. 26(1), pages 1-25, March.
    2. Hughes, G A, 1986. "A New Method for Estimating the Effects of Fuel Taxes: An Application to Thailand," The World Bank Economic Review, World Bank, vol. 1(1), pages 65-101, September.
    3. Duarte, Rosa & Sanchez-Choliz, Julio & Bielsa, Jorge, 2002. "Water use in the Spanish economy: an input-output approach," Ecological Economics, Elsevier, vol. 43(1), pages 71-85, November.
    4. Catsambas, Thanos, 1982. "Distributional implications of changes in U.S. petroleum taxation," Journal of Policy Modeling, Elsevier, vol. 4(2), pages 211-222, June.
    5. Velazquez, Esther, 2006. "An input-output model of water consumption: Analysing intersectoral water relationships in Andalusia," Ecological Economics, Elsevier, vol. 56(2), pages 226-240, February.
    6. Llop, Maria & Pié, Laia, 2008. "Input-output analysis of alternative policies implemented on the energy activities: An application for Catalonia," Energy Policy, Elsevier, vol. 36(5), pages 1642-1648, May.
    7. Alcott, Blake, 2005. "Jevons' paradox," Ecological Economics, Elsevier, vol. 54(1), pages 9-21, July.
    Full references (including those not matched with items on IDEAS)

    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. Llop, Maria, 2018. "Measuring the influence of energy prices in the price formation mechanism," Energy Policy, Elsevier, vol. 117(C), pages 39-48.
    2. Llop, Maria, 2020. "Energy import costs in a flexible input-output price model," Resource and Energy Economics, Elsevier, vol. 59(C).
    3. Matías Piaggio & Vicent Alcántara Escolano & Emilio Padilla, 2012. "Economic structure and key sectors analysis of greenhouse gas emissions in Uruguay," Working Papers wpdea1204, Department of Applied Economics at Universitat Autonoma of Barcelona.
    4. Lenzen, Manfred & Bhaduri, Anik & Moran, Daniel & Kanemoto, Keiichiro & Bekchanov, Maksud & Geschke, Arne & Foran, Barney, 2012. "The role of scarcity in global virtual water flows," Discussion Papers 133478, University of Bonn, Center for Development Research (ZEF).
    5. Llop Llop, Maria, 2017. "Measuring the influence of energy prices within the price formation mechanism," Working Papers 2072/290764, Universitat Rovira i Virgili, Department of Economics.
    6. Sesma Martín, Diego & Rubio-Varas, Mª. del Mar, 2017. "Freshwater for Cooling Needs: A Long-Run Approach to the Nuclear Water Footprint in Spain," Ecological Economics, Elsevier, vol. 140(C), pages 146-156.
    7. Yu, Yang & Hubacek, Klaus & Feng, Kuishuang & Guan, Dabo, 2010. "Assessing regional and global water footprints for the UK," Ecological Economics, Elsevier, vol. 69(5), pages 1140-1147, March.
    8. Ana-Isabel Guerra & Ferran Sancho, 2013. "A Linear Price Model With Extractions," EcoMod2013 5113, EcoMod.
    9. Novo, P. & Garrido, A. & Varela-Ortega, C., 2009. "Are virtual water "flows" in Spanish grain trade consistent with relative water scarcity?," Ecological Economics, Elsevier, vol. 68(5), pages 1454-1464, March.
    10. Alexandros Gkatsikos & Konstadinos Mattas & Efstratios Loizou & Dimitrios Psaltopoulos, 2022. "The Neglected Water Rebound Effect of Income and Employment Growth," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 36(1), pages 379-398, January.
    11. Xiangzheng Deng & Fan Zhang & Zhan Wang & Xing Li & Tao Zhang, 2014. "An Extended Input Output Table Compiled for Analyzing Water Demand and Consumption at County Level in China," Sustainability, MDPI, vol. 6(6), pages 1-20, May.
    12. Rehkamp, Sarah & Canning, Patrick, 2018. "Measuring Embodied Blue Water in American Diets: An EIO Supply Chain Approach," Ecological Economics, Elsevier, vol. 147(C), pages 179-188.
    13. Fuente, David & Kabubo-Mariara, Jane & Kimuyu, Peter & Mwaura, Mbutu & Whittington, Dale, 2017. "Assessing the Performance of Alternative Water and Sanitation Tariffs: The Case of Nairobi, Kenya," EfD Discussion Paper 17-21, Environment for Development, University of Gothenburg.
    14. Cristina Sendra & Xavier Gabarrell & Teresa Vicent, 2006. "Análisis de los flujos de materiales de una región: Cataluña (1996-2000)," Revista Iberoamericana de Economía Ecológica, Red Iberoamericana de Economía Ecológica, vol. 4, pages 43-54.
    15. Alcott, Blake, 2008. "The sufficiency strategy: Would rich-world frugality lower environmental impact," Ecological Economics, Elsevier, vol. 64(4), pages 770-786, February.
    16. Dai, Jiangyu & Wu, Shiqiang & Han, Guoyi & Weinberg, Josh & Xie, Xinghua & Wu, Xiufeng & Song, Xingqiang & Jia, Benyou & Xue, Wanyun & Yang, Qianqian, 2018. "Water-energy nexus: A review of methods and tools for macro-assessment," Applied Energy, Elsevier, vol. 210(C), pages 393-408.
    17. Christopher Müller, 2015. "Welfare Effects of Water Pricing in Germany," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(04), pages 1-25, December.
    18. Adua, Lazarus, 2010. "To cool a sweltering earth: Does energy efficiency improvement offset the climate impacts of lifestyle?," Energy Policy, Elsevier, vol. 38(10), pages 5719-5732, October.
    19. Karen Turner, 2013. ""Rebound" Effects from Increased Energy Efficiency: A Time to Pause and Reflect," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    20. Ouyang, Jinlong & Long, Enshen & Hokao, Kazunori, 2010. "Rebound effect in Chinese household energy efficiency and solution for mitigating it," Energy, Elsevier, vol. 35(12), pages 5269-5276.

    More about this item

    Keywords

    Preus; Consum (Economia); Aigua-Utilització; Aigua-Polítiques de gestió; Aigua-Impostos;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

    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:urv:wpaper:2072/3681. 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: Ariadna Casals (email available below). General contact details of provider: https://edirc.repec.org/data/deurves.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.