Simulating the Macroeconomic Impact of Future Water Scarcity
In this paper we consider some of the economic implications of climate change scenarios as described in the Shared Socioeconomic Pathways (SSPs). By comparing potential water demand with estimates of (sustainable) water availability in different re...
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| Language: | English en_US |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/846471486646385694/Simulating-the-macroeconomic-impact-of-future-water-scarcity http://hdl.handle.net/10986/26027 |
| Summary: | In this paper we consider some of the
economic implications of climate change scenarios as
described in the Shared Socioeconomic Pathways (SSPs). By
comparing potential water demand with estimates of
(sustainable) water availability in different regions, we
identify regions that are likely to be constrained in their
future economic growth potential by the scarcity of water
resources. We assess the macroeconomic impact of water
scarcity under alternative allocation rules finding that, by
assigning more water to sectors in which it has a higher
value, shifting production to less water intensive sectors,
and importing more water intensive goods, constrained
regions can effectively neutralize these water related
climate risks and adapt to a changing water environment.
However, this adaptation effort is likely to imply some
radical changes in water management policies. |
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