THE IMPACT OF TRADE LIBERALISATION ON WATER USE: A COMPUTABLE GENERAL EQUILIBRIUM ANALYSIS

Maria Berrittella, Katrin Rehdanz, Richard S.J. Tol () and Jian Zhang

No FNU-142, Working Papers from Research unit Sustainability and Global Change, Hamburg University

Abstract: We used that GTAP-W model – GTAP5 with water resources added – to estimate the impact of hypothetical Doha-like liberalization of agricultural trade on water use. Three conclusions emerge. First, the change in regional water use is less than 10%, even if agricultural tariffs are reduced by 75%. Second, patterns are non-linear. Water use may go up for partial liberalization, and down for more complete liberalization. This is because different crops respond differently to tariff reductions, but also because trade and competition matter too. Third, trade liberalization tends to reduce water use in water scarce regions, and increase water use in water abundant regions, even though there no water markets in most countries.

Keywords: Computable General Equilibrium; Trade Liberalization; Water Policy; Water Scarcity (search for similar items in EconPapers)
JEL-codes: D58 F13 Q17 Q25 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-cmp and nep-int
Date: 2007-08, Revised 2007-08
View list of references View citations in EconPapers

Forthcoming, Journal of Economic Integration

Downloads: (external link)
http://www.fnu.zmaw.de/fileadmin/fnu-files/publica ... s/cgewaterdohawp.pdf First version, 2007 (application/pdf)

Related works:
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: http://EconPapers.repec.org/RePEc:sgc:wpaper:142

Access Statistics for this paper

More papers in Working Papers from Research unit Sustainability and Global Change, Hamburg University
Contact information at EDIRC.
Series data maintained by Richard Tol ().