Water in the Macro Economy

by Bouhia, Hynd

• ISBN13: 9780754614944
• ISBN10: 0754614948
• Format: Hardcover
• Copyright: 2001-06-01
• Publisher: Ashgate Pub Ltd

Summary

Providing a new methodology to analyze the fundamental interrelationship between the sustainable management of a country's water resources and the formulation of effective strategies for socio-economic development, this book captures the complex nature of water and its effect on a macro economy.

Table of Contents

List of Figures	ix
List of Tables	xi
Acknowledgements	xv
Preface	xvii
List of Abbreviations	xxi
Introduction	1	(6)
The Water Environment and National Planning	7	(20)
Water in the Economy	7	(8)
Priority of the Water Agenda	7	(1)
Investments in the Water Sector	8	(1)
How does the Water Sector Relate to the Economy as a Whole?	9	(1)
Need for a Multi-disciplinary Approach	10	(1)
Horizontal and Vertical Inter-linkages in Water Sector Planning	11	(1)
Towards Integrated Water Resource Strategies	11	(4)
Methodological Overview	15	(6)
Methodologies for Economic Planning	15	(4)
Environmental Accounts and Engineering Techniques	19	(2)
Study Focus: Trigger Effects of Water in the Economy	21	(1)
An Empirical Example: Morocco	22	(5)
The Methodology	27	(38)
Account Balances	28	(7)
Material Balances	28	(1)
The Hydrological Balance	28	(7)
Water Resource Planning and Management	35	(9)
River Basin Approach	36	(1)
Water Allocation System	37	(3)
Intersectoral Water Allocation	40	(1)
Shadow Price of Water	41	(1)
Incorporating Uncertainty into the Process	42	(2)
Integrating Water into the Macroeconomic System	44	(8)
Balancing Water-Related Activities	45	(2)
Water as Part of the Production Process of the Economic Sectors	47	(1)
Merging the Two Accounts: Water and the Economy	48	(4)
Economic Impact Analysis	52	(8)
Leontief's Input-Output Analysis	52	(2)
Multipliers and Ratios	54	(2)
Economy-Wide Value of Water	56	(4)
Framework for an Integrated Water Resource Strategy	60	(4)
Scenarios for Selected Water Policy Options	60	(3)
Towards an Action Plan	63	(1)
Conclusion	64	(1)
Application: Case Study of Morocco	65	(84)
Morocco	66	(1)
The Moroccan Economy	67	(1)
Overview of the Water Sector in Morocco	68	(8)
Water-Stress Situation	68	(2)
Oum Er Rbia, Bou Regrag and Sebou River Basins	70	(4)
Institutional Framework	74	(1)
The Social Account Matrix for Morocco	75	(1)
Macro-Economic Intgrated Analysis of Hydrology Model (MEIAH)	76	(7)
Modeling Approach	77	(1)
A User-Friendly Framework	77	(5)
The Moroccan Base Scenario	82	(1)
Base Scenario Results and Economic Framework	83	(40)
Analysis of the River Basin Approach	83	(4)
Urban Demand: Domestic and Industry	87	(1)
Agricultural Production and Trade	88	(8)
Water Accounts for the Base Scenario---Adjustment of Three-Basin Data to National Level	96	(9)
Water Input-Output Table for Morocco	105	(9)
Water Input-Output Table	114	(9)
Closed Matrix to Households	123	(16)
Multipliers and Ratios	128	(1)
Output Multipliers	128	(1)
Income Multipliers	129	(7)
Employment Multipliers	136	(1)
Water Use Multipliers	137	(2)
Macro-Economic Value of Water	139	(7)
Economic Effects	139	(1)
A Linear Programming Approach	139	(1)
Scenario Analysis	140	(1)
Sensitivity to Water Availability	141	(3)
Economy-Wide Demand Curve	144	(2)
Interpretation	146	(1)
Conclusion	146	(3)
Economic Analysis and Policy Implications	149	(30)
Moving Beyond the Scenario of the Present to Evaluate Possible Future Scenarios	149	(1)
Sustaining the Environment	150	(1)
Environmental Scenario Analysis	151	(3)
Domestic Policy Reforms	154	(8)
Not All Policy Options Are Analysed Here	155	(3)
Cropping-Pattern Policy---Scenario C	158	(1)
Global Balance and Inter-Basin Transfers	159	(2)
Cost to the Government and Pricing Policies	161	(1)
International Policies: Scenarios D and E	162	(3)
Scenario D: Free Trade with 50% Freeing of Cropping Patterns	162	(2)
Scenario E: The Relationship Among Water, Trade, and Food Security	164	(1)
Targeting Priority Investments	165	(11)
How Best to Invest a Million DH?	167	(1)
Investing in the Water Sector	168	(4)
Investing in Agriculture	172	(1)
Investing in Industry and Services	173	(3)
Choice of Investments	176	(1)
Strategic Conclusions	176	(3)
Conclusions and Future Development	179	(8)
Goals and Objectives of this Study	179	(1)
Conclusions and Recommendations	180	(2)
Implementation of the MEIAH Model	182	(2)
What Is the Model and Who Is It For?	182	(1)
How Can Such a Model Be Used?	183	(1)
Application of the Model to other Countries	184	(1)
Future Developments	184	(3)
For MEIAH as Applied to Morocco	184	(1)
Limitations of the Input-Output Model	185	(1)
Onward Creation of a Water CGE Model	186	(1)
Appendix 1: Case Study of Morocco	187	(30)
Appendix 2: The MEIAH-1 Model: A Decision Support System	217	(20)
Appendix 3: Background on the Input-Output Table Used in MEIAH, and on Parallel Work by Others	237	(10)
Appendix 4: Dealing with Uncertainty in Policy Decisions	247	(14)
Bibliography	261