File(s) not publicly available
The Economic Impact of Water Taxes: A Computable General Equilibrium Analysis with an International Data Set
journal contribution
posted on 2023-06-08, 11:06 authored by Maria Berrittella, Katrin Rehdanz, Roberto Roson, Richard TolRichard TolWater is scarce in many countries. One instrument for improving the allocation of a scarce resource is (efficient) pricing or taxation. However, water is implicitly traded on international markets, particularly through food and textiles, so that the impacts of water taxes cannot be studied in isolation, but require an analysis of international trade implications. We include water as a production factor in a multi-region, multi-sector computable general equilibrium model (GTAP), to assess a series of water tax policies. We find that water taxes reduce water use and lead to shifts in production, consumption and international trade patterns. Countries that do not levy water taxes are nonetheless affected by other countries' taxes. Taxes on agricultural water use drive most of the economic and welfare impacts. Reductions in water use (welfare losses) are less (more) than linear with the price of water. The results are sensitive to the assumed ability to substitute other production factors for water. A water tax on production would have different effects on water use, production and trade patterns and the size and distribution of welfare losses than would a water tax on final consumption. © IWA Publishing 2008.
History
Publication status
- Published
Journal
Water PolicyISSN
1366-7017Publisher
IWA PublishingExternal DOI
Issue
3Volume
10Page range
259-271Department affiliated with
- Economics Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2012-04-17Usage metrics
Categories
No categories selectedKeywords
Licence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC