Water - ENV-Linkages

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The market for water is somewhat similar to the land market. An aggregate supply curve is provided, and aggregate supply is then allocated to different uses using a nested CET structure. However, unlike land, water is in direct use in only the irrigated crop sectors. Demand for water in other sectors is specified using aggregate demand functions. The aggregate water supply curve is allowed to have four shapes - constant elasticity, a logistic curve with an upward asymptote, a generalized hyperbola also with an upward asymptote, and perfectly horizontal.

Alert-warning.png Note: The documentation of ENV-Linkages is 'in preparation' and is not yet 'published'!

Model Documentation - ENV-Linkages

Corresponding documentation
Previous versions
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Model information
Model link
Institution Organisation for Economic Co-operation and Development (OECD), France, https://www.oecd.org/.
Solution concept General equilibrium (closed economy)
Solution method Optimization
Anticipation The ENV-Linkages model is a recursive dynamic neo-classical general equilibrium model, meaning that decision-makers do not know the future when making a decision today. After it solves each period, the model then uses the resulting state of the world, including the consequences of decisions made in that period - such as resource depletion, capital stock retirements and installations, and changes to the landscape - and then moves to the next time step and performs the same exercise.