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GTAP Resource #4211

"Nile Water Availability and Agricultural Productivity in Egypt: A CGE Approach"
by Ferrari, Emanuele, Scott McDonald and Rehab Osman

Since their independency in the 1960s, the upstream Nile riparian states have been challenging the validity of the historical 1959 Nile Waters Treaty whereby Egypt and Sudan allocate over 95% of the Nile waters to themselves. The dilemma in the Nile context is that the upstream riparian states that generate 86 percent of Nile water use less than 5 percent of it. In order to establish more equitable regime for Nile water, Entebbe Agreement, signed in 2010, allows upstream states to use higher shares of Nile water for irrigation and hydropower generating activities. In April 2011, Ethiopia has launched the construction of the Grand Ethiopian Renaissance Dam, GERD. With water storage capacity of 63 billion cubic metres and energy generation capacity of 6,000 MW, the GERD is anticipated to be the biggest hydroelectric power plant and one of the largest water reservoirs in the continent.
The inevitable reduction of Nile waters for the agricultural and industrial sectors and private consumption in Egypt will require a re-assessment of the productivity of irrigation water and land, efficiency of irrigation system and optimal allocation of irrigation water. Agriculture is by far the major water-consuming sector in Egypt. Irrigated agriculture absorbs 89 percent of Nile flows, which is the major source of freshwater. The urgent tasks are, therefore, to examine the current and potential water supply and uses and to evaluate their implications for agricultural productivity in Egypt.
Despite its major importance, the area of irrigation water allocation and agricultural productivity is still deficient and has potential for further research. Dudu and Chumi (2008) and Ponce, Bosello and Giupponi (2012) review the partial and general equilibrium literature on modelling water issues at both country and global levels. Several studies have examined the implications of water availability on the Egyptian economy as part of climate change models. Examples are Strzepek et al. (1995...

Resource Details (Export Citation) GTAP Keywords
Category: 2013 Conference Paper
Status: Published
By/In: Presented at the 16th Annual Conference on Global Economic Analysis, Shanghai, China
Date: 2013
Created: Osman, R. (4/15/2013)
Updated: Osman, R. (6/11/2013)
Visits: 1,705
- Calibration and parameter estimation
- Water availability
- Other data bases and data issues
- Africa (North)

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