摘要

This paper describes a multi-region computable general equilibrium model for analyzing the effectiveness of measures and policies for mitigating North China%26apos;s water scarcity with respect to three different groups of scenarios. The findings suggest that a reduction in groundwater use would negatively affect economic growth and household incomes. A planned water-transfer project would improve economic development and reduce the over-exploitation of local water resources, while water demand management policies would improve water-use efficiency through reallocating water to those sectors having a higher marginal product value. Several important policy implications are drawn from these findings.