Management of water resources sector to face climatic shocks in Algieria: A dynamic CGE model analysis
| Autor: | Mohammed Touitou, Yacine Laib, Ahmed Boudeghdegh |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Computable general equilibrium
Marginal cost Demand management Natural resource economics 0208 environmental biotechnology Geography Planning and Development Water supply Tariff 02 engineering and technology 010501 environmental sciences Management Monitoring Policy and Law water resources algeria 01 natural sciences sam cgem GE1-350 Average cost 0105 earth and related environmental sciences Nature and Landscape Conservation Average cost pricing business.industry Pollution 020801 environmental engineering Environmental sciences Urban Studies Water resources climate change business |
| Zdroj: | Environmental & Socio-economic Studies, Vol 8, Iss 1, Pp 48-55 (2020) |
| ISSN: | 2354-0079 |
| DOI: | 10.2478/environ-2020-0006 |
| Popis: | Climate change is a major global issue, which is becoming increasingly important on the international scene. As it has a direct impact on ecosystems and societies. Water is at the heart of these changes. The aim of this article was to capture all the microeconomic and macroeconomic effects of resource availability, and to propose a sequential dynamic computable general equilibrium (CGE) model that takes into account long-term changes in the availability of the primary resource (water supply) with regard to population growth (demand). The results show that the very negative effects on the economy of water shortages could be counteracted by the introduction of a marginal cost demand management policy. This makes it possible to better manage the scarcity of this resource. In fact, the model shows that when Algeria is facing water deficits, the marginal cost tariff policy reverses the trends of an economy that would maintain a tariff policy at average cost. Total investment increases, and total welfare deteriorates less. The drop in the price of water (input and final good), generated by the transition from an average cost pricing to a marginal cost pricing, generates an expansion of many sectors, and stimulates economic activity which reduces the rate of unemployment. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|