Economy Wide Modeling Of Water At Regional And Global Scales

This book deals with the economic modelling of water at the global, national and sub-national levels. It presents a multi-faceted analysis and, while it outlines the theories behind various models, its main purpose is to analyse policy issues and present insights arising from modelling, including a chapter analysing the macroeconomic implications of climate change. Arguably the most compelling reason for publishing a book on the economic modelling of water arises from the fact that agriculture accounts for approximately 70% of water used for economic purposes, while only contributing 4% of global income. Given that water is an essential commodity, this discrepancy may in part be symptomatic of an undervaluation of water due to immature and incomplete markets. In turn, this undervaluation has led to an ongoing misallocation of water. When economic models include water accounts that feed into production functions, they model impacts on the marginal product of water. Policies that improve the link between the marginal product and price of water will improve water allocation, while advanced economic models such as those presented here can enhance our ability to explore the possible impacts of improved policy.

This book deals with the economic modelling of water at the global, national and sub-national levels. It presents a multi-faceted analysis and, while it outlines the theories behind various models, its main purpose is to analyse policy issues and present insights arising from modelling, including a chapter analysing the macroeconomic implications of climate change. Arguably the most compelling reason for publishing a book on the economic modelling of water arises from the fact that agriculture accounts for approximately 70% of water used for economic purposes, while only contributing 4% of global income. Given that water is an essential commodity, this discrepancy may in part be symptomatic of an undervaluation of water due to immature and incomplete markets. In turn, this undervaluation has led to an ongoing misallocation of water. When economic models include water accounts that feed into production functions, they model impacts on the marginal product of water. Policies that improve the link between the marginal product and price of water will improve water allocation, while advanced economic models such as those presented here can enhance our ability to explore the possible impacts of improved policy.

This book contains detailed documentation of the CHINAGEM model - a large-scale dynamic computable general equilibrium (CGE) model of China and its applications. Specifically, this book documents the theory and database behind the CHINAGEM model. This book explores the closure development for the four simulation modes of the model including historical, decomposition, forecast and policy simulations, the detailed explanation of how to analyze simulation results, and the extensions of CHINAGEM and their applications. These extensions include several innovative modules and case studies as examples of the application of CHINAGEM. This book provides an entry point for CGE modellers to develop their analytical skills. This book can also be used as a platform for research institutes to develop CGE models suitable for their research portfolio. The module developments included in this book are designed to capture the specific features of the Chinese economy. The applications of these modules chosen in the book cover hot policy issues in China, and the simulation results have valuable policy implications. This book identifies that the CHINAGEM model itself and all the extensions can be used for analysing many new topics and policy issues such as the effects of the USA–China trade war, the effects of Made in China 2025 Plan as well as China’s commitment to the carbon neutrality before 2060 and its economic implications.

This contributed volume offers a state-of-the-art, holistic overview of the employment of a Water-Energy-Food (WEF) Nexus approach to implement the seventeen United Nations Sustainable Development Goals (SDGs), with a geographical focus on applications in different African regions. The book is divided into three sections, each composed of several chapters contributed by experts in their respective fields. Section I introduces the WEF Nexus and its role in the achievement of the 2030 Agenda and the SDGs. It highlights the attempt to connect different spheres of sustainability thanks to the Nexus, taking advantage of the existing interlinkages and interconnections among the Goals. Section II proposes a multi-scale and multi-stakeholder approach to various aspects of the Nexus and reviews existing quantitative tools. This section focuses on the issue of resource control and development aims and spotlights how Nexus dynamics influence the achievement of the SDGs as a whole. Section III applies the WEF Nexus to different African regions, which are balancing a rising population and an economic boom with severe vulnerability in the face of climate change. Chapter “Review of the Economic Impact of Water Availability on Food Security and the Related Ecosystems” is available open access under a Creative Commons Attribution 4.0 International License via link.springer.com.

The book details the innovative TERM (The Enormous Regional Model) approach to regional and national economic modeling, and explains the conversion from a comparative-static to a dynamic model. It moves on to an adaptation of TERM to water policy, including the additional theoretical and database requirements of the dynamic TERM-H2O model. In particular, it examines the contrasting economic impacts of water buyback policy and recurring droughts in the Murray-Darling Basin. South-east Queensland, where climate uncertainty has been borne out by record-breaking drought and the worst floods in living memory, provides a chapter-length case study. The exploration of the policy background and implications of TERM’s dynamic modeling will provide food for thought in policy making circles worldwide, where there is a pressing need for solutions to similarly intractable problems in water management.

This timely Handbook draws together insightful analyses of natural resource management challenges and solutions in the face of sustainable development targets and a changing global climate.

Growing global water stress caused by the combined effects of growing populations, increasing economic development, and climate change elevates the importance of managing and allocating water resources in ways that are economically efficient and that account for interdependencies between food production, energy generation, and water networks—often referred to as the “food-energy-water (FEW) nexus.” To support these objectives, this report outlines a replicable hydro-economic methodology for assessing the value of water resources in alternative uses across the FEW nexus–including for agriculture, energy production, and human consumption—and maximizing the benefits of these resources through optimization analysis. The report’s goal is to define the core elements of an integrated systems-based modeling approach that is generalizable, flexible, and geographically portable for a range of FEW nexus applications. The report includes a detailed conceptual framework for assessing the economic value of water across the FEW nexus and a modeling framework that explicitly represents the connections and feedbacks between hydrologic systems (e.g., river and stream networks) and economic systems (e.g., food and energy production). The modeling components are described with examples from existing studies and applications. The report concludes with a discussion of current limitations and potential extensions of the hydro-economic methodology.