The theory of TERM-H2O

Peter Bishop Dixon, Maureen Rimmer, Glyn Wittwer

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    TERM-H2O is a dynamic variant of TERM with agricultural detail adapted to include regional water accounts. This chapter describes: (a) the technology assumptions in TERM-H2O for farm industries, (b) the creation of an input-output database for farm industries including inputs of water, (c) the derivation of input demand functions for farm industries and their calibration using farm sector input-output data, and (d) assumptions concerning mobility of capital, land, owner-operator labour and hired labour between farm industries. A key assumption is that irrigable land in TERM-H2O can be used either as an input of irrigated land or an input of dryland, with the division determined endogenously via water availability.
    Original languageEnglish
    Title of host publicationEconomic Modeling of Water: The Australian CGE Experience
    EditorsGlyn Wittwer
    Place of PublicationDordrecht Netherlands
    Pages79 - 98
    Number of pages20
    ISBN (Print)9789400728752
    Publication statusPublished - 2012

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