The Transboundary Impacts of Trade Liberalization and Climate Change on the Nile Basin Economies and Water Resource Availability

Tewodros Negash Kahsay (), Onno Kuik, Roy Brouwer () and Pieter Zaag
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Tewodros Negash Kahsay: Addis Ababa University
Pieter Zaag: IHE Delft

Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), 2018, vol. 32, issue 3, No 7, 935-947

Abstract: Abstract A multi-country, multi-sector computable general equilibrium (CGE) model is used for the first time to evaluate the economic and water resource availability effects of trade liberalization (removal of import tariffs) and facilitation (reducing non-tariff barriers) under climate change in the Nile Basin. The analysis uses the GTAP 9 Database and the GTAP-W model that distinguishes between rainfed and irrigated agriculture and implements water as a factor of production directly substitutable in the production process of irrigated agriculture. A full trade liberalization and improved trade facilitation scenario is considered with and without climate change. The study reveals that trade liberalization and facilitation generates substantial economic benefits and enhances economic growth and welfare in the Nile basin. The effect of instituting a free trade policy on water savings is found to be limited, while climate change improves water supply and hence irrigation water use, enhancing economic growth and welfare in the basin.

Keywords: Computable general equilibrium model; Climate change; Trade liberalization; Nile River Basin (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s11269-017-1847-7

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