Impacts of Water Pollution and Shortage on Economic Development of the Haihe River Basin
海河流域水污染及水资源短缺对经济发展的影响

Haihe River Basin is one of seven major river basin with important ecological function in China.With the country's economic development,ecological environment in the region is becoming more and more worse and its ecosystem is getting extremely fragile which is inconsistent with the country's rapid economic development.CGE model(Computable General Equilibrium) originated from the general equilibrium theory of Walrus in western economics can be used for analyzing the impact of the policy on economic development.Environmental policies taken to reduce pollutants disposal and water consumption directly influencing product price and production cost as well as economic structure,therefore,environment and resource elements can be brought into CGE model to simulate general economic system of equilibrium and to identify the key elements,which determine the general mechanisms of resource distribution and income distribution in market economy.This paper analyze the impact of water pollution and water shortage on basin's economic development through using CGE model while regarding water resource as one of the production factor and water pollution treatment as an independent entity at the same time to analyses the relationship between input and output among water resource,water pollution control and other economic activities.The analysis results revealed that,first,through water pollution harness,the traditional GDP will decrease,but the green GDP will increase,and the economic in the basin increases to the sustainable way;Second,compare to water shortage crisis,water pollution crisis is more urgent.Through water diversion from south to north project and technique index promotion,water shortage crisis will get alleviate,but water pollution need great effort.