Efficiency improvements and water policy in the balearic islands: a general equilibrium approach

Dolores Tirado, Carlos M. Gómez and Javier Lozano
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Dolores Tirado: Universidad de las Islas Baleares
Carlos M. Gómez: Universidad de Alcalá
Javier Lozano: Universidad de las Islas Baleares

Investigaciones Economicas, 2006, vol. 30, issue 3, pages 441-463

Abstract: We use an Applied General Equilibrium Model of the Balearic Islands to explore the impact of increasing the technical efficiency of water use in the tourism sector. We show that water efficiency measures do not reduce economic pressures on water ecosystems. Consequently water price increases and reductions in water withdrawals are needed as ancillary measures. This water policy package opens a menu of possible outcomes in terms of conservation of water resources and the production of market goods. We also provide information about distributional impacts that should be considered to determine the convenience of implementing water saving programs.

Keywords: Applied general equilibrium; water economics. (search for similar items in EconPapers)
JEL-codes: Q25 D58 (search for similar items in EconPapers)
Date: 2006

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