Measurement of the Impact of Water Reduction on Economic Sectors Production using Social Accounting Matrix (SAM)

Document Type : Research Article-en

Authors

• A. Parvar ¹
• H.R. Mirzaei Khalil Abadi ²
• H. Mehrabi Boshrabadi ²
• M.R. Zare Mehrjerdi ²

¹ Agricultural Economics, Shahid Bahonar University of Kerman, Kerman, Iran and Department of Agriculture, Faculty Member of Jiroft Branch, Islamic Azad University, Jiroft, Iran

² Department of Agricultural Economics, Faculty of Agriculture, Shahid Bahonar University of Kerman, Kerman, Iran

https://doi.org/10.22067/jead.2021.17773.0

Abstract

Water is one of the most valuable resources available to mankind. Today, international communities are aware of the importance of water for sustainable economic growth in the present and future. In this study, the effect of reducing water resources on economic sectors and agricultural sub-sectors was investigated through a social accounting matrix model. The results are presented in the form of absolute and relative effects. The direct and indirect impacts of a 10 and 50 percent reduction in water resources have been a decrease in the production of 3.4 and 22 percent from the viewpoint of a demanding, 4.7 and 24 percent from the viewpoint of a supplier, for agricultural products. From the perspective of a demanding, a 10 percent reduction in water resources has led to 10.5 percent production reduction of other economic sectors. The relative effects of 10 percent water reduction from a supplier’s point of view indicate that the greatest reduction was in water and other resources sectors. The relative reduction in water resources from the viewpoint of demanding has the greatest impact on water and veterinary sectors. From the perspective of the absolute effects on the demanding and the supplier, the vulnerability of urban households as a result of water resource reduction has been greater than that of rural households. Considering the relative impacts on a supplier, the impact of reduced income is greatr on urban low-income households than low-income rural households. Relative reduction of water resources from the perspective of demanding has a greater impact on capital factor than on labor factor

Keywords

• Social Accounting Matrix
• Production
• Water Resources Classification JEL: C67
• E23
• O13

20.1001.1.20084722.1400.35.4.1.7

Main Subjects

• Agricultural Economics

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