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Economy-Wide Implications of Direct and Indirect Policy Interventions in the Water Sector : Lessons from Recent Work and Future Research Needs

AGRICULTURAL PRODUCTION ALLOCATION OF WATER AQUIFER ARID REGIONS AVAILABILITY OF WATER AVAILABLE WATER AVAILABLE WATER RESOURCES BASINS CALIBRATION CHANNELS CHEAPER WATER CLIMATE CHANGE CLIMATIC CONDITIONS COMMERCIAL FARMING COMPETITION FOR WATER CONJUNCTIVE USE CONSTRUCTION COST OF WATER CROP PRODUCTION CROP ROTATION CROPPING SYSTEM CULTIVATED AREA DAMS DECISION MAKING DECISION MAKING PROCESS DECISION PROCESS DELIVERY COSTS DEMAND FOR WATER DROUGHT EXPORT FARMERS FOOD PRODUCTION FOOD SECURITY FRESH WATER GROUND WATER GROUNDWATER GROUNDWATER PUMPING HOUSEHOLDS IMPORTS INDUSTRIAL SECTOR IRRIGATION IRRIGATION DISTRICT IRRIGATION SYSTEMS IRRIGATION WATER IRRIGATORS LAKES LIVESTOCK PRODUCTION MANAGEMENT OF WATER MARGINAL COST METROPOLITAN AREAS MUNICIPALITIES PERFORMANCE INDICATORS POLLUTION POPULATION GROWTH PRESSURE PRICE DISTORTIONS PRICE OF WATER PROGRAMS PROVISION OF WATER PUBLIC OWNERSHIP PUMPING QUANTITY OF WATER RAIN RAINFALL REGIONAL WATER PROJECTS RENEWABLE WATER RESOURCES RESOURCE CONSERVATION RIPARIAN RIPARIAN STATES SCARCE WATER SCARCITY OF WATER SCIENCES SNOW SNOW MELT SURFACE SOURCES SURFACE WATER SURFACE WATER SUPPLY URBAN CENTERS URBAN WATER URBAN WATER SUPPLY USE OF WATER WATER AFFAIRS WATER ALLOCATION WATER ALLOCATIONS WATER APPLICATION WATER AUTHORITIES WATER AUTHORITY WATER AVAILABILITY WATER CHARGES WATER CONSUMPTION WATER CONVEYANCE WATER DEMAND WATER DISTRICTS WATER EXTRACTION WATER LAW WATER MANAGEMENT WATER MANAGEMENT POLICY WATER MARKET WATER MARKETS WATER POLICIES WATER POLICY WATER POLLUTANTS WATER PRICING WATER PRICING METHODS WATER PROJECTS WATER RESOURCE WATER RESOURCES WATER RESOURCES DEVELOPMENT WATER RESOURCES MANAGEMENT WATER RIGHTS WATER SCARCITY WATER SECTOR WATER SUPPLIES WATER SUPPLY WATER SUPPLY DEMAND WATER TRANSFER WATER USE WATER USER WATER WITHDRAWAL WELLS
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World Bank, Washington, DC
Latin America & Caribbean | Middle East and North Africa | Africa | Europe and Central Asia | Turkey | Morocco | Mexico
2012-06-29T21:58:37Z | 2012-06-29T21:58:37Z | 2012-05

Water is increasingly becoming a limiting factor for sustainable economic growth and development in many countries. Its allocation has significant impacts on overall economic efficiency, particularly with growing physical scarcity in certain regions. Greater water supply variability further increases vulnerability in affected regions. Water also has become a strategic resource involving conflicts among those who may be affected differently by various policies. This paper analyzes various policy interventions aimed at improving water allocation decisions, using a novel approach that incorporates macro and micro level considerations in a unified analytical framework. The framework facilitates assessment of various linkages among policies and their impacts within individual sectors and economy-wide. Drawing on country based studies in Morocco, South Africa, Turkey, and Mexico, the analysis reveals difficult tradeoffs among various policy objectives, including priorities placed on different sectors, regional advantages, and general economic efficiency gains versus broader social impacts. The comparison of policy impacts demonstrates the usefulness of the framework in information that policy makers can use to rank the policy interventions according to the emphasis placed on different policy objectives. The paper also compares approaches used in other studies that apply computable general equilibrium models in various contexts of water, environment and agriculture.

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