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Evaluating the economic loss induced by water pollution based on multi-regional CGE Model: a case study of Yangtze River Delta Basin |
ZHANG Wei1,2, LIU Yu3, JIANG Ling4, WANG Jin-nan1,2, WU Wen-jun1,2, BI Jun2 |
1. State Environmental Protection Key Laboratory of Environmental Planning and Policy Simulation, Chinese Academy for Environmental Planning, Beijing 100012, China;
2. State Key Laboratory of Pollution Control & Resource Reuse, School of Environment, Nanjing University, Nanjing 210093, China;
3. Institute of Policy and Management, Chinese Academy of Sciences, Beijing 100190, China;
4. School of Government, Central University of Finance and Economics, Beijing 100081, China |
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Abstract Taking Yangtze River Delta Basin as an example, indirect economic impacts of water pollution in 2011 on sub-regions (Shanghai, Zhejiang and Jiangsu) were simulated based on a basin scale multi-regional computable general equilibrium (CGE) model. Moreover, an indirect effect coefficient (IDE) was been built to reflect the degree of indirect effect of water pollution on each sub-region and sector. The results indicated that economic impacts of water pollution had significant differences in three sub-regions of Yangtze River Delta Basin. The loss in GDP in Shanghai was the highest (16.13 billion Yuan), whereas the ratio of GDP loss in Zhejiang decreased most significantly (2.84%). In addition, the IDE of Shanghai, Zhejiang and Jiangsu were 3.47, 1.98 and 0.92 respectively, which means that the economy of Shanghai was most sensitive to water pollution occurred in the Yangtze River Delta Basin than other two regions.
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Received: 15 January 2016
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