Assessing the impacts of water policy in Beijing: A computable general equilibrium analysis

A computable general equilibrium model with detail types of water is applied to study the impacts of water pricing scheme, ground water protection and water transfer policy in Beijing. We compare the short-run and long run results. Water transfer project is advantageous to Beijing, which is able to offset the adverse effects of groundwater protection policy. Water price policy cause the decrease of water use by raising water price, which has limited negative impacts on other sectors of local economy. The package of these policies has positive implications on local economy.