Skip to main content

Distributing Water Between Competing Users in the Netherlands

  • Chapter
  • First Online:
Economy-Wide Modeling of Water at Regional and Global Scales

Abstract

The Netherlands is a delta country where water is usually abundant. Large investments in water infrastructure aim to prevent flooding, maintain shipping transport routes, irrigate farmland and ensure the health of polder lands and nature. During the limited periods when water is scarce, agriculture is low on the priority list for water allocation : farmers may be restricted in expanding irrigation operations or be even temporarily forbidden from using the equipment already installed. This comes at a cost to agricultural production . Water in this context is a unique economic input that is not privately owned, not always scarce, and not always allocated according to market principles. Nonetheless, the framework of a computable general equilibrium model (CGE ) can be very effective in assessing economy-wide changes from periods of water scarcity and weighing this against policy initiatives to reduce water scarcity . In this chapter we explore adaptation possibilities to water scarcity from climate change with a particular focus on the challenges of interpretation of the CGE methodology for water in the context of the Netherlands .

This chapter reproduces with permission substantial portions of Koopman et al. (2015, 2017).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Armington PS (1969) A theory of demand for products distinguished by place of production. Staff Papers-Int Monetary Fund 16:159–178

    Article  Google Scholar 

  • Berck P, Robinson S, Goldman GE (1990) The use of computable general equilibrium models to assess water policies. Working paper 545, Department of Agricultural and Resource Economics, University of California at Berkeley, Berkeley, CA

    Google Scholar 

  • Briscoe J (2005) Water as an economic good. In: Brouwer R, Pearce D (eds) Cost-benefit analysis and water resources management. Edward Elgar, Cheltenham, pp 46–70

    Google Scholar 

  • Brouwer R, Hofkes M (2008) Integrated hydro-economic modelling: approaches, key issues and future research directions. Ecol Econ 66:16–22

    Google Scholar 

  • Brouwer R, Hofkes M, Linderhof V (2008) General equilibrium modelling of the direct and indirect economic impacts of water quality improvements in the Netherlands at national and river basin scale. Ecol Econ 66:127–140

    Article  Google Scholar 

  • Calzadilla A, Rehdanz K, Tol RSJ (2010) The economic impact of more sustainable water use in agriculture: a computable general equilibrium analysis. J Hydrology 384:292–305

    Article  Google Scholar 

  • Calzadilla A, Rehdanz K, Tol RSJ (2011a) The GTAP-W model: accounting for water use in agriculture. Kiel Working Papers 1745

    Google Scholar 

  • Calzadilla A, Rehdanz K, Tol RSJ (2011b) Water scarcity and the impact of improved irrigation management: a computable general equilibrium analysis. Agricultural Econ 42:305–323

    Article  Google Scholar 

  • Collins R, Kristensen P, Thyssen N (2009) Water resources across Europe-confronting water scarcity and drought. EEA Report No. 2/2009, Office for Official Publications of the European Communities

    Google Scholar 

  • Coumou D, Di Capua G, Vavrus S, Wang L, Wang S (2018) The influence of Arctic amplification on mid-latitude summer circulation. Nat Comm 9:2959

    Article  Google Scholar 

  • Dellink R, Brouwer R, Linderhof V, Stone K (2011) Bio-economic modeling of water quality improvements using a dynamic applied general equilibrium approach. Ecol Econ 71:63–79

    Article  Google Scholar 

  • Diao X, Roe T, Doukkali R (2005) Economy-wide gains from decentralized water allocation in a spatially heterogenous agricultural economy. Environ Develop Econ 10:249–269

    Article  Google Scholar 

  • Diao X, Dinar A, Roe T, Tsur Y (2008) A general equilibrium analysis of conjunctive ground and surface water use with an application to Morocco. Agric Econ 38:117–135

    Article  Google Scholar 

  • Dimaranan BV (ed) (2006) Global trade, assistance, and production: the GTAP 6 data base. Center for Global Trade Analysis, Purdue University, West Lafayette

    Google Scholar 

  • Dupont DP, Renzetti S (2001) The role of water in manufacturing. Environ Resour Econ 18:411–432

    Article  Google Scholar 

  • Eurostat (2012) Annual detailed enterprise statistics on manufacturing subsections DA-DE and total manufacturing (NACE Rev. 1.1, D). http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database Code:sbs_na_2a_dade

  • Eurostat (2014) Annual freshwater abstraction by source and sector. http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database Code: env_wat_abs

  • Goodman DJ (2000) More reservoirs or transfers? A computable general equilibrium analysis of projected water shortages in the Arkansas river basin. J Agric Resource Econ 25:698–713

    Google Scholar 

  • Gomez CM, Tirado D, Rey-Maquieira J (2004). Water exchanges versus water works: insights from a computable general equilibrium model for the Balearic Islands. Water Resour Res 40 (W10502)

    Google Scholar 

  • Harou JJ, DE Pulido-VelazquezM Rosenberg, Medellin-Azuara J, Lund JR, Howitt RE (2009) Hydro-economic models: concepts, design, applications, and future prospects. J Hydrol 375:627–643

    Article  Google Scholar 

  • Hertel TW (1997) Global trade analysis: modeling and applications. Cambridge University Press, Cambridge, MA

    Google Scholar 

  • Hoogewoud JC, Prinsen GF, Hunink JC, Veldhuizen AA, van der Bolt FJE, de Lange WJ (2013) Toetsingsrapportage NHI 3.0. Deltares, Delft

    Google Scholar 

  • Hughes G, Chinowsky P, Strzepek K (2010) The costs of adaptation to climate change for water infrastructure in OECD countries. Util Poli 18:142–153

    Article  Google Scholar 

  • IPCC (2014) Annex XX: Glossary. In: Agard J, Schipper ELF, Birkmann J, Campos M, Dubeux C, Nojiri Y, Olsson L, Osman-Elasha B, Pelling M, Prather MJ, Rivera-Ferre MG, Ruppel OC, Sallenger A, Smith KR, St Clair AL, Mach KJ, Mastrandrea MD, Bilir TE, Barros VR, Field CB, Dokken DJ, Mastrandrea MD, Mach KJ, Bilir TE, Chatterjee M, Ebi KL, Estrada YO, Genova RC, Girma B, Kissel ES, Levy AN, MacCracken S, Mastrandrea PR, White LL (eds) Climate change 2014: impacts, adaptation, and vulnerability. Part B: regional aspects. Contribution of working group II to the fifth assessment report of the intergovernmental panel on climate change, p 1. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA

    Google Scholar 

  • Klijn F, van Velzen E, ter Maat J, Hunink J (2012) Zoetwatervoorziening in Nederland Deltaresrapport, Delft

    Google Scholar 

  • Koopman JFL, Kuik OJ, Tol RDJ, Brouwer R (2015) Water scarcity from climate change and adaptation response in an international river basin context. Climate Change Econ 6(1)

    Google Scholar 

  • Koopman JFL, Kuik OJ, Tol RDJ, Brouwer R (2017) The potential of water markets to allocate water between industry, agriculture, and public water utilities as an adaptation mechanism to climate change. Mitig Adapt Strat Glob Change 22:325–347

    Article  Google Scholar 

  • Koopman JFL, Kuik OJ, van der Vat M, Hunink J, Brouwer R (2018) The economic impact of irrigation water scarcity from climate change: a CGE analysis distinguishing between surface and ground water. In Preparation.

    Google Scholar 

  • Liu J, Hertel T, Taheripour F (2016) Analyzing future water scarcity in computable general equilibrium models. Water Econ Policy 2(4)

    Google Scholar 

  • Ministerie van Verkeer en Waterstaat (2009) Waterbesluit—Besluit houdende regels met betrekking tot het beheer en gebruik van watersystemen (ontwerp)

    Google Scholar 

  • Mulder HM, Veldhuizen AA (2017). AGRICOM 2.05 Theorie en gebuikershandleiding. Altera-rapport 2576d. Altera onderdeel van Wageningen UR, Wageningen

    Google Scholar 

  • Ponce R, Bosello F, Giupponi C (2012) Integrating water resources into computable general equilibrium models—a survey. FEEM Working Paper 57, Fondazione Eni Enrico Matte, Milan

    Google Scholar 

  • Renzetti S (1992) Estimating the structure of industrial water demands: the case of Canadian manufacturing. Land Econ 68:396–404

    Article  Google Scholar 

  • Rosegrant M, Cai X, Cline S (2002) World water and food to 2025: dealing with scarcity. International Food Policy Research Institute

    Google Scholar 

  • Scharf D, Burke D, Villeneuve M, Leigh L (2002) Industrial water use, 1996. Minister of Public Works and Government Services Canada

    Google Scholar 

  • Smit B, Burton I, Klein RJT, Wandel J (2000) An anatomy of adaptation to climate change and variability. Clim Change 45:223–251

    Article  Google Scholar 

  • te Linde AH (2007) Effect of climate change on the rivers Rhine and Meuse: applying the KNMI 2006 scenarios using the HBV model. Report Q4286. WL Delft Hydraulics, Delft

    Google Scholar 

  • Teeples R, Glyer D (1987) Production functions for water delivery systems: analysis and estimation using dual cost function and implicit price specifications. Water Resour Res 23:765–773

    Article  Google Scholar 

  • van den Hurk B, Klein Tank A, Lenderink G, van Ulden A, Van Oldenborgh GJ, Katsman C, Van den Brink H, Keller F, Bessembinder J, Burgers G (2006) KNMI climate change scenarios 2006 for the Netherlands. KNMI De Bilt

    Google Scholar 

  • Young RA, Haveman RH (1985) Economics of water resources: a survey. In: Kneese AV, Sweeney JL (eds) Handbook of natural resources and energy economics, vol II. Elsevier Science Publishers, Amsterdam

    Google Scholar 

  • Zhu X, van Ierland E (2012) Economic modelling for water quantity and quality management: a welfare program approach. Water Resour Manag 26:2491–2511

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Jason F. L. Koopman .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Singapore Pte Ltd.

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Koopman, J.F.L., Kuik, O., Tol, R.S.J., van der Vat, M.P., Hunink, J.C., Brouwer, R. (2019). Distributing Water Between Competing Users in the Netherlands. In: Wittwer, G. (eds) Economy-Wide Modeling of Water at Regional and Global Scales. Advances in Applied General Equilibrium Modeling. Springer, Singapore. https://doi.org/10.1007/978-981-13-6101-2_8

Download citation

  • DOI: https://doi.org/10.1007/978-981-13-6101-2_8

  • Published:

  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-13-6100-5

  • Online ISBN: 978-981-13-6101-2

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics