GTAP Resources: Resource Display
| GTAP Resource #7576 |
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"Modeling the Formalization of Water Provision in Lebanon: Economic Implications of Strategic Sectoral Investments Using a CGE Framework" by Khraizat, Zein and Alvaro Calzadilla Abstract Lebanon’s deepening water crisis—exacerbated by economic collapse and decades of underinvestment—has led to widespread dependence on informal water markets, where prices far exceed formal tariffs and disproportionately burden low-income households. To assess the economic and distributional implications of reversing this trend, a dynamic, country-specific computable general equilibrium model is developed, explicitly integrating formal and informal water provision into household consumption and production. Simulation of three investment scenarios—focused on non-revenue water reduction, network expansion, and storage infrastructure—demonstrates that formal supply can increase from 336 to 905 million m³/year by 2050, reducing informal reliance from 45% to below 5%. Real GDP rises by up to 3.35% relative to the baseline, with sectoral output expanding by 12% in agriculture, 2.0% in manufacturing, and over 2.1% in services. Household welfare improves across all income groups, with the greatest gains among the poorest, who reduce informal water expenditures by up to 12%. The results demonstrate that targeted investments in formal water infrastructure increase real GDP and improve welfare distribution, with the largest equivalent variation gains accruing to low-income households. |
| Resource Details (Export Citation) | GTAP Keywords | ||||||||||||||||
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- Environmental policies - Water availability - Other data bases and data issues - Domestic policy analysis - Economic growth - Infrastructure - Technological change - Dynamic modeling - Partial and general equilibrium models - Middle East |
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Public Access  Paper (158.5 KB) 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 2:05:45 PM
