Published online by Cambridge University Press: 21 April 2021
The chapter presents an economy-wide modeling framework that enables analyzing the direct and indirect impacts of policy interventions on sectors in the economy. The chapter reviews studies that model various policy interventions aimed at improving water allocation decisions within an economy-wide context. It focuses on the “macro-micro linkage” framework that facilitates assessment of various linkages among policies and their impacts within individual sectors and on the entire economy. Drawing on country-based studies in Morocco, South Africa, Turkey, and Mexico, the analysis reveals trade-offs among various policy objectives, including priorities placed on different sectors, regional advantages, and general economic efficiency gains versus broader social impacts.
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