Water Embedded CGE Model to Assess Impacts of South to North Water Transfer To Recipient Region

The article reports the social-economic impacts from China’s South to North Water Transfer project to recipient region, through a set of outcomes simulated by a water embedded computable general equilibrium model WCGE. Authors modeling efforts devoted focus on the skilful treatment of water in the WCGE framework as a type of factor input of various production functions to reflect its significant effect on the corresponding sector output. Therefore, the WCGE simulation outcomes show water use and adjusted water supply balances in various regions, and draw implications from the results in terms of water use levels by type of uses. The outcomes also interpret how constraining would water resource become under these scenario conditions to the region’s sustainable development.