Author(s): Angela Valle-Garcia; Nazaret M. Montilla-Lopez; Julio Berbel; Carlos Gutierrez-Martin
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Keywords: No Keywords
Abstract: Hydro-economic modelling combines biophysical and socioeconomic factors for water management. At best, the economic effects in hydro-economic models only take into account the microeconomic scale, ignoring the changes that the general economy of the region may have. The main objective of this work is to develop a link between a hydro-economic model and Computable General Equilibrium (CGE) model, using the Guadalquivir River Basin (GRB) in Spain as a case study. We apply the drought management plan of the GRB at micro and macro-economic scale in drought situation. Our results show that the economic impact of droughts decreases when macroeconomic effects are considered due to the increase in crop prices when crop area is reduced.
Year: 2024