The Model Analysis of Water Resource Policy Based On CGE Model

Water resources must exist in the forms of water factors and water commodities. Based on this feature as well as the actual situation of water resource remuneration collection of our country, this thesis has included water production and supply industry, factors reward of water resources and the computable general equilibrium model of water resources of production water supply subsidy. Three scenes have been established, they are the rise in price of water factors, adjustment of production water supply subsidy and technical progress. Setting Jiangxi Province as an example, this thesis has manufactured SAM form, utilized CGE model to simulate the impacts possessed by various scenes on the economy and society and conducted comparable analysis of the simulation results of these three scenes under the same water-saving target. The research result indicates: Raising the price of water factors, cutting down the production water supply subsidy as well as the technical progress can all promote the improvement of water-use efficiency and decrease the total demand of water-use. However, whether analysed from indexes like the total output, GDP, employment, price level or the income of residents or enterprises, the former two scenes will definitely generate negative impact on economy, besides, the negative impact will be larger if cutting down the production water supply subsidy. Technical progress can promote economic development when reaching the water-saving target at the same time.