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China is experiencing from serious water issues.There are many differences among theNine Major Rivers basins of China in the construction of dikes,reservoirs,floodgates,flood dischargeprojects,flood diversion projects,water ecological constrnction,water consevancy management,etc.The shadow prices of water resources for Nine Major Rivers can provide suggestions to the Chinese gov-ernment.This article develops a dynamic shadow prices approach based on a muhiperiod input-outputoptimizing model.Unlike previous approaches,the new model is based on the dynamic computable gen-eral equilibrium(DCGE)model to solve the problem of marginal long-term prices of water resources.First,definitions and algorithms of DCGE are elaborated.Second,the results of shadow prices ofwater resources for Nine Major Rivers in 1949 2050 in China using the National Water Conservancyinput-holding output table for Nine Major Rivers in 1999 are listed.A conclusion of this article is thatthe shadow prices of water resources for Nine Major Rivers are largely based on the extent of searcity.Selling prices of water resources should be revised via the usage of parameters representing shadowprices.
China is experiencing from serious water issues. There are many differences among theNine Major Rivers basins of China in the construction of dikes, reservoirs, floodgates, flood dischargeprojects, flood diversion projects, water ecological constrction, water consevancy management, etc.The shadow prices of water resources for Nine Major Rivers can provide suggestions to the Chinese gov-ernment. This article develops a dynamic shadow prices approach based on a muhiperiod input-output optimization model. Uniarchy approaches approaches, the new model is based on the dynamic computable gen-eral equilibrium (DCGE) model to solve the problem of marginal long-term prices of water resources. First, definitions and algorithms of DCGE are elaborated. Second, the results of shadow prices of water resources for Nine Major Rivers in 1949 2050 in China using the National Water Conservancy input-holding output table for Nine Major Rivers in 1999 are listed. A conclusion of this article is that the shadow prices of water resour ces for Nine Major Rivers are largely based on the extent of searcity. Sale prices of water resources should be revised via the usage of parameters representing shadowprices.