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	Impact analysis of government investment on water projects in the arid Gansu Province of China
	Wang Z.; Deng, X. Z.; Li, X. B.; Zhou, Q.; Yan, H. M.
	2015
关键词	Water project CGE Economic efficiency Factor mobility Government investment Gansu river-basin climate-change land-use management demand substitution scarcity morocco model
英文摘要	In this paper, we introduced three-nested Constant Elasticity of Substitution (CES) production function into a static Computable General Equilibrium (CGE) Model. Through four levels of factor productivity, we constructed three nested production function of land use productivity in the conceptual modeling frameworks. The first level of factor productivity is generated by the basic value-added land. On the second level, factor productivity in each sector is generated by human activities that presents human intervention to the first level of factor productivity. On the third level of factor productivity, water allocation reshapes the non-linear structure of transaction among first and second levels. From the perspective of resource utilization, we examined the economic efficiency of water allocation. The scenario-based empirical analysis results show that the three-nested CES production function within CGE model is well-behaved to present the economy system of the case study area. Firstly, water scarcity harmed economic production. Government investment on water projects in Gansu thereby had impacts on economic outcomes. Secondly, huge governmental financing on water projects bring depreciation of present value of social welfare. Moreover, water use for environment adaptation pressures on water supply. The theoretical water price can be sharply increased due to the increasing costs of factor inputs. Thirdly, water use efficiency can be improved by water projects, typically can be benefited from the expansion of watersaving irrigation areas even in those expanding dry area in Gansu. Therefore, increasing governmental financing on water projects can depreciate present value of social welfare but benefit economic efficiency for future generation. (C) 2015 Elsevier Ltd. All rights reserved.
出处	Physics and Chemistry of the Earth
卷	79-82
页	54-66
收录类别	SCI
语种	英语
ISSN号	1474-7065
内容类型	SCI/SSCI论文
源URL	[http://ir.igsnrr.ac.cn/handle/311030/38913]
专题	地理科学与资源研究所_历年回溯文献
推荐引用方式 GB/T 7714	Wang Z.,Deng, X. Z.,Li, X. B.,et al. Impact analysis of government investment on water projects in the arid Gansu Province of China. 2015.

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