Jing HE;Xikang CHEN;Yong SHI
Journal of Systems Science and Complexity. 2006, 19(1): 76-087.
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.