Economy-wide analysis of water resource management : a cge model for Turkey

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2008

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Çırpıcı (Usanmaz), Yasemin Asu

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Water-related issues are gaining importance at both national and global level. Water resources are becoming insufficient in meeting the rising needs. As resources are distributed unevenly throughout the world, supply and demand correspondence is difficult to meet. The analysis of water related issues should be addressed within a comprehensive framework. CGE models offer this possibility. This study aims to construct a CGE model for Turkey which includes water as a factor of production. It relates water issues with another troublesome debate that is important for Turkey: trade liberalization in agriculture. Turkey as a member of WTO and a candidate country for the EU has to consider the effects of a further liberalization in agriculture on its economy. In this study a trade liberalization scenario and a water-policy scenario have been discussed. Additional simulations are conducted in the case of a productivity increase in agriculture. Results show that, trade liberalization in agriculture leads to an increase in GDP and income levels, but had a negative impact on the trade balance in agricultural products. Applying a “selective water tax” will result in a decrease in production and consumption in water-intensive sectors, as well as in the private income. For the first simulation, productivity increase in agriculture leads to a further increase in both GDP level and incomes, and it compensates the trade distortions resulting from the tariff reduction. In water simulation, private income increases with productivity increase and depletion in production and consumption of agricultural products reversed. Moreover, the net exports in agriculture improve significantly.

Subject Keywords

Economics.

URI

http://etd.lib.metu.edu.tr/upload/3/12609404/index.pdf
https://hdl.handle.net/11511/17612

Collections

Graduate School of Social Sciences, Thesis

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Citation Formats

Y. A. Çırpıcı (Usanmaz), “Economy-wide analysis of water resource management : a cge model for Turkey,” Ph.D. - Doctoral Program, Middle East Technical University, 2008.