Estimating the Potential Water Transfer Prices Using Price Endogenous Theory

Chi-Chung Chen () and Shih-Hsun Hsu

Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), 2010, vol. 24, issue 12, 3237-3256

Abstract: The purpose of this paper is to estimate the potential market price for the transfer of water among sectors in the Northern Taiwan region. This region is the major semiconductor and information technology product manufacturing area in Taiwan and plays an important role in contributing to domestic GDP. To this end, a regional water endogenous price economic model using a nonlinear programming approach is adopted in which the activity of transferring water from the agricultural sector to the non-agricultural sector in a water market is taken into consideration. In addition, the potential water transfer price is estimated using this empirical model under the assumption of social welfare maximization. The scenario results prove that the activity of transferring water from the agricultural sector to the non-agricultural sector could improve the benefits both in the water market and the agricultural sector. Copyright Springer Science+Business Media B.V. 2010

Keywords: Water transfer; Endogenous price; Spatial equilibrium model (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:spr:waterr:v:24:y:2010:i:12:p:3237-3256

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DOI: 10.1007/s11269-010-9604-1

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