The economic impact of water tax charges in China: a static computable general equilibrium analysis |
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| Authors: | Changbo Qin Yangwen Jia Z Su Hans TA Bressers Hao Wang |
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| Affiliation: | 1. State Key Laboratory of Simulation and Regulation of River Basin Water Cycle , China Institute of Water Resources and Hydropower Research (IWHR) , Beijing , China;2. Faculty of Geo-Information Science and Earth Observation , University of Twente , Enschede , the Netherlands;3. Center for Clean Technology and Environmental Policy (CSTM) , University of Twente , Enschede , the Netherlands;4. Environmental Strategy Institute , Chinese Academy for Environmental Planning (CAEP) , Beijing , China qincb@caep.org.cn;6. State Key Laboratory of Simulation and Regulation of River Basin Water Cycle , China Institute of Water Resources and Hydropower Research (IWHR) , Beijing , China;7. Faculty of Geo-Information Science and Earth Observation , University of Twente , Enschede , the Netherlands;8. Center for Clean Technology and Environmental Policy (CSTM) , University of Twente , Enschede , the Netherlands |
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| Abstract: | This paper presents a static computable general equilibrium model of the Chinese economy with water as an explicit factor of production. This model is used to assess the broad economic impact of a policy based on water demand management, using water tax charges as a policy-setting tool. It suggests that imposing water taxes can redistribute sectoral water use and lead to shifts in production, consumption, value added, and trade patterns. Another important finding is that water taxes imposed on the agricultural sector drive most of the effects. |
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| Keywords: | Computable general equilibrium water allocation water pricing water tax water scarcity China |
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