Water scarcity from climate change and adaptation response in an international river basin context

J.F. Levin-Koopman, O.J. Kuik, Richard S.J. Tol, Roy Brouwer

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

We simulate and analyze the direct and indirect economic impacts of climate change on water availability for irrigation on the economy of the Netherlands and the other EU countries which share the Rhine and Meuse river basin (France, Germany and Belgium), employing a computable general equilibrium (CGE) model. We make use of the GTAP-W model, distinguishing between rainfed and irrigated land and irrigation water as input factors in agricultural production. We assess the scope of market adaptation to climate change by comparing the CGE results with the direct agricultural damage costs estimated using hydrological and crop growth models. We find considerable scope for market adaptation in that total economic impacts on agriculture are much lower when accounting for substitution effects and cross-sectoral and cross-country interlinkages, while the impact on the nonagricultural sectors becomes larger when these substitution effects and interlinkages are accounted for.
LanguageEnglish
Number of pages22
JournalClimate Change Economics
Volume06
Issue number01
DOIs
Publication statusPublished - Feb 2015

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economic impact
substitution
irrigation
computable general equilibrium analysis
climate change
market
water availability
agricultural production
river basin
agriculture
water
damage
crop
cost
international river basin
effect
Interlinkage
Water
Economic impact
Irrigation

Cite this

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abstract = "We simulate and analyze the direct and indirect economic impacts of climate change on water availability for irrigation on the economy of the Netherlands and the other EU countries which share the Rhine and Meuse river basin (France, Germany and Belgium), employing a computable general equilibrium (CGE) model. We make use of the GTAP-W model, distinguishing between rainfed and irrigated land and irrigation water as input factors in agricultural production. We assess the scope of market adaptation to climate change by comparing the CGE results with the direct agricultural damage costs estimated using hydrological and crop growth models. We find considerable scope for market adaptation in that total economic impacts on agriculture are much lower when accounting for substitution effects and cross-sectoral and cross-country interlinkages, while the impact on the nonagricultural sectors becomes larger when these substitution effects and interlinkages are accounted for.",
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Water scarcity from climate change and adaptation response in an international river basin context. / Levin-Koopman, J.F.; Kuik, O.J.; Tol, Richard S.J.; Brouwer, Roy.

In: Climate Change Economics, Vol. 06, No. 01, 02.2015.

Research output: Contribution to JournalArticleAcademicpeer-review

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