Simulating the Macroeconomic Impact of Future Water Scarcity: an Assessment of Alternative Scenarios

Roberto Roson and Richard Damania

No 84, IEFE Working Papers from IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy

Abstract: In this paper we consider some of the economic implications of climate change scenarios as described in the Shared Socioeconomic Pathways (SSPs). By comparing potential water demand with estimates of (sustainable) water availability in different regions, we identify regions that are likely to be constrained in their future economic growth potential by the scarcity of water resources. We assess the macroeconomic impact of water scarcity under alternative allocation rules finding that, by assigning more water to sectors in which it has a higher value, shifting production to less water intensive sectors, and importing more water intensive goods, constrained regions can effectively neutralize these water related climate risks and adapt to a changing water environment. However, this adaptation effort is likely to imply some radical changes in water management policies.

Keywords: Water; Economic Growth; Shared Socio-economic Pathways; Computable General Equilibrium; Virtual Water Trade. (search for similar items in EconPapers)
JEL-codes: C68 F18 F43 O11 Q01 Q25 Q32 Q56 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2016
New Economics Papers: this item is included in nep-agr and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://repec.unibocconi.it/iefe/bcu/papers/iefewp84.pdf (application/pdf)

Related works:
Working Paper: Simulating the Macroeconomic Impact of Future Water Scarcity an Assessment of Alternative Scenarios (2016)
Working Paper: Simulating the Macroeconomic Impact of Future Water Scarcity: an Assessment of Alternative Scenarios (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcu:iefewp:iefewp84

Access Statistics for this paper

More papers in IEFE Working Papers from IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy Via Röntgen, 1 - 20136 Milano - Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Carlotta Milani ().