Long-Term Economy-Wide Impacts of the Grand Ethiopian Renaissance Dam on Sudan

Khalid Siddig, Mohammed Basheer and Jonas Luckmann
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Mohammed Basheer: The University of Manchester
Jonas Luckmann: Humboldt University of Berlin

No 1427, Working Papers from Economic Research Forum

Abstract: The Grand Ethiopian Renaissance Dam (GERD) is expected to increase Ethiopia's electricity generation and affect water users in Egypt and Sudan. We analyze potential economy-wide impacts on Sudan of the steady-state operation of the GERD using a computable general equilibrium model coupled with hydrological, water allocation, and crop models. Results show that the increase in hydropower generation and irrigated agriculture in Sudan due to the flow regulation effect of the GERD would increase Sudan's accumulated GDP by US$ 27-29 billion over 2020-2060. The choice of cropping pattern for Sudan's new irrigation schemes is key to maximizing the county's macro-economic benefits.

Pages: 22
Date: 2020-11-20, Revised 2020-11-20
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Published by The Economic Research Forum (ERF)

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Related works:
Working Paper: Long-term economy-wide impacts of the Grand Ethiopian Renaissance Dam on Sudan (2019)
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