Changes in Water Resources Systems:
Methodologies to Maintain Water Security and Ensure Integrated Management
(Proceedings of Symposium HS3006 at IUGG2007, Perugia, July 2007). IAHS Publ. 315, 2007, 303-309.
Impacts
of water pollution and shortage on the economic development of the Haihe River
basin
Huang Hao1 & Xia Jun2
1 The Third Institute of Oceanography, SOA, 178A Daxue Road,
Xiamen 361005, China
2 Key Laboratory of Water Cycle & Related Surface Process, Institute of Geographical Sciences and Natural Resources Research, CAS, 11A Datun Road, Anwai Beijing 100101, China
Abstract The Haihe River basin is one of the
seven major river basins, which are of great ecological importance to China. On
one hand, the Haihe River basin’s economy is developing rapidly, but on the other hand, the ecological
environment in this region is increasingly worse, and its ecosystem is becoming
extremely fragile, which is not harmonious with its rapid economic development.
Coming from the general equilibrium theory of Walrus, the CGE model (Computable
General Equilibrium) can be applied to analyse the impact of government policy
on economic development. Environmental policies taken to reduce pollutant
disposal and water consumption directly influence product price, production
cost, and even economic structure. In this paper, by building a CGE model, we
will analyse the impact of water pollution and water shortage on economic
development in the basin region. By viewing water resource as one of the
production factors and water pollution treatment as an independent entity, we
will also analyse the relationship between input and output of water resource, and
between water
pollution control and other economic activities. The analysis comes to the
following points. First, through water pollution control the traditional GDP decreases, but
the green GDP increases. Second, compared to water shortage, the water
pollution crisis is more urgent. Through the water diversion project from the south to the north of
China and technique
index promotion, water shortage is alleviated, but water pollution needs
further effort.
Key
words CGE Model; Haihe River basin; water pollution;
water shortage