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.
|Title of host publication||Economic Modeling of Water: The Australian CGE Experience|
|Place of Publication||Dordrecht Netherlands|
|Pages||79 - 98|
|Number of pages||20|
|Publication status||Published - 2012|