Can a water market avert the "double-whammy" of trade reform and lead to a "win-win" outcome?
This paper focuses on the linkages between water and trade policies, using Morocco as a case. This country is typical of many in that policy protects its import competing agricultural and industrial sectors while water in irrigated agriculture is priced below its marginal value product. Changing wat...
| Main Authors: | , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Elsevier
2003
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/157759 |
| _version_ | 1855538655622332416 |
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| author | Diao, Xinshen Roe, Terry L. |
| author_browse | Diao, Xinshen Roe, Terry L. |
| author_facet | Diao, Xinshen Roe, Terry L. |
| author_sort | Diao, Xinshen |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This paper focuses on the linkages between water and trade policies, using Morocco as a case. This country is typical of many in that policy protects its import competing agricultural and industrial sectors while water in irrigated agriculture is priced below its marginal value product. Changing water policy without correcting for these other distortions leads to a more inefficient allocation of water. On the other hand, reforming trade policy alone can make farmers growing crops protected pre-reform worse off. Using an intertemporal, applied general equilibrium model, we find that trade reform actually creates an opportunity to pursue water policy reform. Creating a water user-rights market post trade reform not only compensates for the decline in farmers’ profits caused by the trade reform, but also raises the efficiency of water allocation and hence benefits the economy as a whole. -- Online Abstract |
| format | Journal Article |
| id | CGSpace157759 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2003 |
| publishDateRange | 2003 |
| publishDateSort | 2003 |
| publisher | Elsevier |
| publisherStr | Elsevier |
| record_format | dspace |
| spelling | CGSpace1577592025-04-08T18:33:00Z Can a water market avert the "double-whammy" of trade reform and lead to a "win-win" outcome? Diao, Xinshen Roe, Terry L. water use regulations markets trade policies economic indicators water markets equilibrium theory This paper focuses on the linkages between water and trade policies, using Morocco as a case. This country is typical of many in that policy protects its import competing agricultural and industrial sectors while water in irrigated agriculture is priced below its marginal value product. Changing water policy without correcting for these other distortions leads to a more inefficient allocation of water. On the other hand, reforming trade policy alone can make farmers growing crops protected pre-reform worse off. Using an intertemporal, applied general equilibrium model, we find that trade reform actually creates an opportunity to pursue water policy reform. Creating a water user-rights market post trade reform not only compensates for the decline in farmers’ profits caused by the trade reform, but also raises the efficiency of water allocation and hence benefits the economy as a whole. -- Online Abstract 2003-05 2024-10-24T12:51:43Z 2024-10-24T12:51:43Z Journal Article https://hdl.handle.net/10568/157759 en Limited Access Elsevier Diao, Xinshen; Roe, Terry L. 2003. Can a water market avert the "double-whammy" of trade reform and lead to a "win-win" outcome? Journal of Environmental Economics and Management 45(3): 708-723. https://doi.org/10.1016/S0095-0696(02)00019-0 |
| spellingShingle | water use regulations markets trade policies economic indicators water markets equilibrium theory Diao, Xinshen Roe, Terry L. Can a water market avert the "double-whammy" of trade reform and lead to a "win-win" outcome? |
| title | Can a water market avert the "double-whammy" of trade reform and lead to a "win-win" outcome? |
| title_full | Can a water market avert the "double-whammy" of trade reform and lead to a "win-win" outcome? |
| title_fullStr | Can a water market avert the "double-whammy" of trade reform and lead to a "win-win" outcome? |
| title_full_unstemmed | Can a water market avert the "double-whammy" of trade reform and lead to a "win-win" outcome? |
| title_short | Can a water market avert the "double-whammy" of trade reform and lead to a "win-win" outcome? |
| title_sort | can a water market avert the double whammy of trade reform and lead to a win win outcome |
| topic | water use regulations markets trade policies economic indicators water markets equilibrium theory |
| url | https://hdl.handle.net/10568/157759 |
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