Integrating Water Resources into Computable General Equilibrium Models - A Survey

30 Pages Posted: 13 Oct 2012 Last revised: 26 Oct 2012

See all articles by Robert Ponce

Robert Ponce

Ca Foscari University of Venice

Francesco Bosello

University of Milan - Department of Economics, Business and Statistics; CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici

Carlo Giupponi

Ca Foscari University of Venice - Dipartimento di Economia; Fondazione Eni Enrico Mattei (FEEM)

Date Written: October 12, 2012

Abstract

Water resources are facing several stresses in terms of quantity and quality. These pressures are closely related to the human interventions in fields like: agriculture, land-use/land use change, construction/management of reservoirs, pollutant emissions, and water/wastewater treatment, among others. Considering the critical role that water plays for agricultural production, any shock in water availability will have great implications for agricultural production, and through agricultural markets these impacts will reach the whole economy with economy-wide consequences. The aim of this report is to present a literature review about the state of the art methodology regarding the study of water issues using the CGE approach at global and national scale. The analysis of the different studies confirms the economy wide consequences of changes in water allocation, irrigation policies, and climate change, among others water related issues.

Keywords: Computable General Equilibrium Models, Water, Irrigation, Agricultural Policy, Water Allocation

JEL Classification: C68, Q18, Q25, Q54

Suggested Citation

Ponce, Robert and Bosello, Francesco and Giupponi, Carlo, Integrating Water Resources into Computable General Equilibrium Models - A Survey (October 12, 2012). FEEM Working Paper No. 57.2012, CMCC Research Paper No. 0140, Available at SSRN: https://ssrn.com/abstract=2160652 or http://dx.doi.org/10.2139/ssrn.2160652

Robert Ponce

Ca Foscari University of Venice

Dorsoduro 3246
Veneto 30123

Francesco Bosello (Contact Author)

University of Milan - Department of Economics, Business and Statistics

Via Festa del Perdono, 7
Milan, 20122
Italy

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Carlo Giupponi

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy

Fondazione Eni Enrico Mattei (FEEM) ( email )

Corso Magenta 63
20123 Milan
Italy

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