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

Maria Berrittella, Katrin Rehdanz, Richard Tol and Jian Zhang
Authors registered in the RePEc Author Service: Jian Zhang 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)
Pages: 27 pages
Date: 2007-08, Revised 2007-08
New Economics Papers: this item is included in nep-agr, nep-cmp and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Forthcoming, Journal of Economic Integration

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Journal Article: The Impact of Trade Liberalization on Water Use: A Computable General Equilibrium Analysis (2008)
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