A unified policy framework for energy and water would be beneficial considering the high interdependence of the two resources in China. In this paper, a recursive dynamic computable general equilibrium model is established to examine the existence of synergetic effects within water fee policy and energy related climate policy, i.e. carbon tax, and provide insights for Chinese integrative policy-making. The results show that water fee can contribute to industrial water conservation, whereas its effect is limited under current water fee level.
Peer-reviewed publication