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Modeling the effects of population growth on water resources: a CGE analysis of the South Platte River Basin in Colorado
Abstract This research examines the general equilibrium implications of economic and population growth on a fixed (or exogenously determined) total supply of available water in the South Platte River Basin in Colorado. Instead of looking at the effects of increased demand for water on a fixed allocation regime, we allow for transfers of water between agricultural and municipal water users based on the respective factor demand for water across the economy. The study utilizes an 18-sector computable general equilibrium (CGE) model, where water is incorporated as a primary factor of production for agricultural operations and for a municipal water supply sector, but as an intermediate input for all other sectors. It is determined that, by allowing for water transfers with a fixed supply of water, the projected 50% increase in population from 2002 to 2030 will result in a 5.7% shift in water allocation from agriculture to other sectors. However, the total real value of agricultural sales is expected to increase slightly over this same period. The price of municipal water is expected to increase by 8.4% and the price of agricultural water is expected to increase by 10.4%. This result is contrasted to a scenario where significant barriers to water transfers are enacted. In this case the price of municipal water increases by 25% and agricultural water prices remain constant.
Modeling the effects of population growth on water resources: a CGE analysis of the South Platte River Basin in Colorado
Abstract This research examines the general equilibrium implications of economic and population growth on a fixed (or exogenously determined) total supply of available water in the South Platte River Basin in Colorado. Instead of looking at the effects of increased demand for water on a fixed allocation regime, we allow for transfers of water between agricultural and municipal water users based on the respective factor demand for water across the economy. The study utilizes an 18-sector computable general equilibrium (CGE) model, where water is incorporated as a primary factor of production for agricultural operations and for a municipal water supply sector, but as an intermediate input for all other sectors. It is determined that, by allowing for water transfers with a fixed supply of water, the projected 50% increase in population from 2002 to 2030 will result in a 5.7% shift in water allocation from agriculture to other sectors. However, the total real value of agricultural sales is expected to increase slightly over this same period. The price of municipal water is expected to increase by 8.4% and the price of agricultural water is expected to increase by 10.4%. This result is contrasted to a scenario where significant barriers to water transfers are enacted. In this case the price of municipal water increases by 25% and agricultural water prices remain constant.
Modeling the effects of population growth on water resources: a CGE analysis of the South Platte River Basin in Colorado
Watson, Philip S. (author) / Davies, Stephen (author)
2009
Article (Journal)
Electronic Resource
English
BKL:
83.64$jRegionalwirtschaft
/
74.12
Stadtgeographie, Siedlungsgeographie
/
38.00$jGeowissenschaften: Allgemeines
/
38.00
Geowissenschaften: Allgemeines
/
83.64
Regionalwirtschaft
/
74.12$jStadtgeographie$jSiedlungsgeographie
RVK:
ELIB39
/
ELIB18
/
ELIB45
Local classification FBW:
oek 4450
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