Simulating the Macroeconomic Impact of Future Water Scarcity an Assessment of Alternative Scenarios

Roberto Roson and Richard Damania

No 332687, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: In this paper we consider some of the economic implications of climate change scenarios as described in the Shared Socioeconomic Pathways (SSPs). By comparing potential water demand with estimates of (sustainable) water availability in different regions, we identify regions that are likely to be constrained in their future economic growth potential by the scarcity of water resources. We assess the macroeconomic impact of water scarcity under alternative allocation rules finding that, by assigning more water to sectors in which it has a higher value, shifting production to less water intensive sectors, and importing more water intensive goods, constrained regions can effectively neutralize these water related climate risks and adapt to a changing water environment. However, this adaptation effort is likely to imply some radical changes in water management policies.

Keywords: Research Methods/Statistical Methods; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Date: 2016
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https://ageconsearch.umn.edu/record/332687/files/7866.pdf (application/pdf)

Related works:
Working Paper: Simulating the Macroeconomic Impact of Future Water Scarcity: an Assessment of Alternative Scenarios (2016)
Working Paper: Simulating the Macroeconomic Impact of Future Water Scarcity: an Assessment of Alternative Scenarios (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332687

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