A Study on the productive effects of the Project of Taleghan water transfer to Tehran and Alborz provinces, with a general equilibrium model

Document Type : Research Paper

Authors

1 Ph.D. Student, Department of Agricultural Economics, Faculty of Agriculture University of Tabriz, Tabriz, Iran

2 Professor, Department of Agricultural Economics, Faculty of Agriculture University of Tabriz, Tabriz, Iran

3 Professor, Department of Agricultural Economics, University of Tehran, Karaj, Iran

4 Visiting Professor, Department of Administrative Studies, Faculty of Liberal Arts and Professional Studies, York University, ON, Canada

Abstract

Today due to the unbalanced distribution of water resources as well as the unbalanced distribution of the population, it is necessary that the justly distribution of water, the allocation and optimal utilization of water resources for the needs of different parts and in different areas  be done.Water transfer plans are one of the water supply and development projects, which on the one hand is a response to the problem of imbalance with the distribution of the population and its related activities, and on the other hand, is the spatial distribution of water. These plans are a solution to the water crisis and has economic, social, and environmental effects. This study investigates the productive effects of the project of Taleghan water transfer to Tehran and Alborz provinces in the form of a general equilibrium model. For this purpose, the input-output table of each province designed and implemented using the general equilibrium model of water transfer scenario. Based on the results, with increasing 114 million cubic meters and 35 million cubic meters of drinking water respectively for Tehran and Alborz provinces, with a tariff of 4,000 Rials, household expenditure for Tehran and Alborz provinces, respectively, grows by 37 and 108 percent. Due to the growth of household expenditures, the production of various economic sectors, except for the product and treatment sector of water, had a small growth in the rest of the sectors.

Keywords


  1. Annabi, N., Cissé, F., Cockburn, J., & Decaluwe, B. (2005). Trade liberalisation, growth and poverty in Senegal: A dynamic microsimulation CGE model analysis. Center Etudes Prospective Et Information Internationale(CEPII) .Working Paper 05-12.
  2. Ali Mohammadi, R. (2013). Inter-basin water transfer and solution. National Conference on Inter-basin Water Transfer (Challenges and Opportunities). Shahrekord University, Islamic Azad University, Kurdistan. (In Farsi)
  3. Alcamo, J., Henrichs, T., & Rösch, T. (2000). World water in 2025: Global modeling and scenario analysis for the world commission on water. World water series report, 2
  4. Basiratzadeh, H., Minaei, S. & Shahidi, A. (2008). Evaluation of Water Transfer to Zayandehrud Basin through Beheshtakad Tunnel. 2nd National Conference on Irrigation and Drainage Networks Management, Ahvaz, Chamran University. (In Farsi)
  5. Chen, C. C., & Hsu, S. H. (2010). Estimating the potential water transfer prices using price endogenous theory. Water Resources Management, 24(12), 3237-3256.
  6. Caramooz, M., Iraqi Nejad, Sh. & Ahmadi, A. (2004). Challenges facing water management and water planning in Khuzestan province with emphasis on inter-basin water transmission and sustainable development. National conference, water inter-basin water transfer and its role in sustainable development of the country.In Iran (In Farsi)
  7. Dixon, P. B. (1990). A general equilibrium approach to public utility pricing: determining prices for a water authority. Journal of Policy Modeling 12(4), 745-767.
  8. Fiorillo, F., Palestrini, A., Polidori, P., & Socci, C. (2007). Modelling water policies with sustainability constraints: a dynamic accounting analysis. Ecological Economics 63(2-3), 392-402.
  9. Flegg, A. T., Huang, Y., & Tohmo, T. (2015). Using CHARM to adjust for cross-hauling: the case of the province of Hubei, China. Economic Systems Research 27(3), 391-413
  10. Falkenmark, M., & Widstrand, C. (1992). Population and water resources: a delicate balance. Population bulletin, 47(3), 1-36.
  11. Ghassemi, F., & White, I. (2007). Inter-basin water transfer: case studies from Australia, United States, Canada, China and India. Cambridge University Press.
  12. Golbaz, M., Heidari, B., Hoseinzad Firoozi, J., Hayati, B,. & Riahi Dareh, F. (2017). Assessment of the economic, social and environmental impacts of the dam and irrigation network of Tangab Firouzabad, Fars. Journal of Agricultural Economics and Development, 2, 179-195. (In Farsi)
  13. Hosoe, N., Gasawa, K., & Hashimoto, H. (2010). Textbook of computable general equilibrium modeling: programming and simulations. Palgrave Macmillan London. Springer
  14. Johansen, L. (1960). A multi-sectoral study of economic growth, JSTOR. Economica, 174-176.
  15. Kumar, R., & Young, C. (1996). Economic policies for sustainable water use in Thailand. International Institute for Environment and Development. CREED Working Paper Series No 4
  16.  
  17. Kronenberg, T. (2012). Regional input-output models and the treatment of imports in the European System of Accounts (ESA). Jahrbuch für Regionalwissenschaft, 32(2), 175-191.
  18. Lofgren, H., Harris, R. L., & Robinson, S. (2002). A standard computable general equilibrium (CGE) model in GAMS (Vol. 5). Intl Food Policy Res Inst.
  19. Miller, R. E., & Blair, P. D. (2009). Input-output analysis: foundations and extensions. Cambridge university press.
  20. Ministry of Energy . (2012).Office macro planning of water and ABFA in Iran, Water comprehensive plan, 2010. and statistical Annual report of surface currents and water volume in reservoirs
  21. Narayanan, B. G., Taheripour, F., Hertel, T. W., Sahin, S., & Escurra, J. J. (2015). Water Scarcity in South Asia: A Dynamic Computable General Equilibrium Analysis. In 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California (No. 205651). Agricultural and Applied Economics Association & Western Agricultural Economics Association.
  22. Pahizkari, A., Taqizadeh Ranjbari, H., Shaukat Fadaei, M. & Mahmoudi, A. (2016). Evaluation of Economic Damage Transfer of Water between Pools on Cropping Pattern and Income Status of Farmers in the Basin (Case Study: Alumetrood Transfer to Qazvin Plain). Journal of Agricultural Economics and Development 3, 333-319. (In Farsi)
  23. Roozbahani, R., Schreider, S., & Abbasi, B. (2015). Optimal water allocation through a multi-objective compromise between environmental, social, and economic preferences. Environmental Modelling & Software 64, 18-30.
  24. Rivers, N., & Groves, S. (2013). The welfare impact of self-supplied water pricing in Canada: a computable general equilibrium assessment. Environmental and Resource Economics 55(3), 419-445.
  25. Statistical Center of Iran) .2011( & )2016 .(Public Census of Population and Housing, www.amar.org.ir/
  26. Sadeghi, H., Kazemi Kia, S., Khairfam, H. & Hasebawi, Z. (2017). Experiences and Consequences of Inter-basin water transfer in the World, Water Resources Research, 2 (12), 120-140. (In Farsi)
  27. Thamipour Zarandi,M., & Yazdan, S.(2016). Role of Economic Instruments in Integrated Water Resources Management: A Case Study of Irrigation Water pricing in the western watersheds of Iran. Journal of Agricultural Economics and Development, 2, 545-556. (In Farsi)
  28. Tien Bui, D., Talebpour Asl, D., Ghanavati, E., Al-Ansari, N., Khezri, S., Chapi, K., ... & Thai Pham, B. (2020). Effects of inter-basin water transfer on water flow condition of destination basin. Sustainability, 12(1), 338.
  29. Zhou, Q., Deng, X., & Wu, F. (2017). Impacts of water scarcity on socio-economic development: A case study of Gaotai County, China. Physics and Chemistry of the Earth, Parts A/B/C 101, 204-213.
  30. Yousefi, A., Khalilian, S. & Bilali, H. (2012). A Study of the Strategic Importance of Water Resources in Iran's Economy Using General Equilibrium Model. Economics and Agricultural Development (Agricultural Industries Science), 1, 109-120.
  31. Water Resources Management Centre  In Iran, (2018). Annual report of precipitation, surface currents and water volume in reservoirs www.wrm.ir
  32. Water: The Environmental Outlook to 2050. (2011). Organization for Economic Co-operation and Development (OECD).www.oecd.org/g20/topics/energy-environment-green-growth/oecdenvironmentaloutlookto2050theconsequencesofinaction.htm