Evaluation of Water Saving and Economy Impact for Tax Reform Policy Using CGE Model with Integrated Multiple Types of Water

As one of the important policy measures to promote water conservation and efficient utilization, evaluation resources tax reform regarding its saving economic impact (WSEI) is a fundamental prerequisite for implementation. In this study, multiple types production modules, including surface water, groundwater, unconventional were integrated into CGE model. Hebei Province, first pilot area in China, was used as case study. Through “with–without” comparative analysis scenario, three simulations designed address key issues, results showed that implementation would have certain negative on industry output short term, but it could effectively suppress use conventional utilization which beneficial long-term resource sustainability. The imposition higher differential rates high water-consuming industries more effective further promoting reducing achieve targets. Moreover, providing refunds subsidies water-using alleviate conservation. From perspectives quantity, efficiency, impact, optimal scenario (S3) selected, involving implementing 23% 18% general industries, coupled with sectors. Based this, corresponding recommendations terms rate setting, government regulation, agricultural collection provided. These findings can offer scientific reference formulation policies other regions.