Kiel Working Papers, Kiel Institute for World Economics
No 1436:
Water scarcity and the impact of improved irrigation management: A CGE analysis
Alvaro Calzadilla, Katrin Rehdanz and Richard S.J. Tol
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
Keywords: Computable General Equilibrium, Irrigation, Water Policy, Water Scarcity, Irrigation efficiency; (follow links to similar papers)
JEL-Codes: D58,; Q17,; Q25; (follow links to similar papers)
49 pages, July 2008
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