Study on Application of Computable General Equilibrium Model in Water Resources Accounting

Abstract

Water resources accounting aims to objectively evaluate the contribution of water to economic and social development and the negative effects of water utilization of economic social on water resources, through the establishment of the relationship between water and the economy. The computable general equilibrium (CGE) model contains water information is an ideal way to establish this relationship. Based on the comprehensive analysis of the CGE model in the field of water resources application methods, the paper proposes that water resources information can be built into the CGE model in the form of production factors and industry sectors, in order to truly establish the relationship between the water resources account and the national economic account. The CGE model for water resources accounting was built, on the data basis of the social accounting matrix (SAM) containing water resources accounts, by setting the economic subject, assuming the equilibrium relationship, and creating the computing functions. The study has realized the convergence of water resources and national economic accounting system, will enrich the research content of water resources accounting system, provide a reference for other resource special accounts and comprehensive environmental economic accounting, and some services for strict management and policy development of water resources.