Abstract
China is experiencing from serious water issues. There are many differences among the Nine Major Rivers basins of China in the construction of dikes, reservoirs, floodgates, flood discharge projects, flood diversion projects, water ecological construction, water conservancy management, etc. The shadow prices of water resources for Nine Major Rivers can provide suggestions to the Chinese government. This article develops a dynamic shadow prices approach based on a multiperiod input–output optimizing model. Unlike previous approaches, the new model is based on the dynamic computable general equilibrium (DCGE) model to solve the problem of marginal long-term prices of water resources. First, definitions and algorithms of DCGE are elaborated. Second, the results of shadow prices of water resources for Nine Major Rivers in 1949–2050 in China using the National Water Conservancy input–holding–output table for Nine Major Rivers in 1999 are listed. A conclusion of this article is that the shadow prices of water resources for Nine Major Rivers are largely based on the extent of scarcity. Selling prices of water resources should be revised via the usage of parameters representing shadow prices.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
D. Shen, R. Liang, Hao Wang and Xiaoliu Yang, Theory and Calculation on the Prices of Water, Science Press, Beijing, 2001, 33–35.
Q. Zhong, Input-Output Analysis, Zhongguo Caijing Press, Beijing, 1984, 64–70.
X. Chen, C. Yang and J. Xu, Water conservancy economy input-holding-output table of China and its application, International Journal of Development Planning Literature, 2003, 2(2): 48–54.
X. Liu and X. Chen, Input-output analysis applied in the calculation of Chinese shadow prices of water resource, Management Review, 2003, 15(3): 49–54.
J. Zhao, Analysis of the shadow prices, Economics and Education of the Leader, 1995, 2(3): 6–11.
H. O. Carter and D. Ireri, Linkage of California-Arizona input-output models to analyze water transfer pattern, Applications of Input-Output Analysis, 1970, 11(3): 139–168.
H. Bouhia, Incorporating water into the input-output table, Presented at the Twelfth International Input-Output Conference, NewYork, 1998.
M. Xie, G. Nie and X. Jin, Application of an Input-Output Analysis (ed. by Karen R. Polenske and Xikang Chen), Oxford University Press, Hong Kong, 1991, 239–257.
W. W. Leontief et al., Studies in the Structure of the American Economy, Oxford University Press, 1951, 1919–1939.
X. Liu, Input-Occupancy-Output Models for National Economy and Others, PhD thesis, Chinese Academy of Science, 1995.
Dorfman, Samuelson and Solow, Linear Programming and Economic Analysis, McGraw-Hill, 1958.
Author information
Authors and Affiliations
Corresponding author
Additional information
This work was supported in part by National Nature Science Foundation of China (No. 70472074, No. 70131002, and No. 60474063) and China Postdoctoral Science Foundation.
Rights and permissions
About this article
Cite this article
He, J., Chen, X. & Shi, Y. A Dynamic Approach to Calculate Shadow Prices of Water Resources for Nine Major Rivers in China. Jrl Syst Sci & Complex 19, 76–87 (2006). https://doi.org/10.1007/s11424-006-0076-6
Received:
Issue Date:
DOI: https://doi.org/10.1007/s11424-006-0076-6