GTAP Resources: Resource Display
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"Impact on Demand for Water upon Entering WTO - A Taiwanese Case Study " by Chou, Chang-Erh, Shih-Hsun Hsu and Ping Li Abstract The purposes of this paper are twofold: to build a multi-regional computable general equilibrium model for water resources and to investigate the impact of entering WTO on Taiwan¡¦s water demand among different sectors. In order to investigate the impact of water policies, we develop a multi-regional computable general equilibrium model for water resources, known as MR-WATERGEM. Due to the uneven distribution of water in regions, we divide Taiwan into four regions in MR-WATERGEM. The water resources included in the model are tap water, surface water and ground water. Water company is treated as a sector, surface water and ground water are treated as free primary inputs. The substitution among three water resources is also formulated. We use 1996 input-output tables of Taiwan to construct the base year data. Water resources are very limited in Taiwan. They are unevenly distributed in terms of season, region and user. While agricultural production has been decreasing, the sector still owns about 75% of water rights. Reallocation of water among users is necessary for solving the problem of water shortage in industrial and domestic sectors. However, due to the political and historical reasons, agriculture sector strongly opposites the idea of transferring water to the other sectors. On the other hand, agricultural sector is believed to reduce its production after entering WTO. If this is the case, there will be a surplus in water for agriculture, and a water transfer will become possible desirable. We investigate the impact of trade liberalization on demand for water in Taiwan. The results show that the output in agricultural sector decreases while the high-tech sectors will grow. In other words, the demand for water in agriculture sector will reduce and demand for water in some industrial sectors in some regions will increase. In this paper, we further discuss the mechanism for transferring water from agriculture sector to the other sectors. |
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Public Access  Presentation (1.6 MB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 1:05:45 PM
