Review of CGE models on water resources

We briefly introduce the computable general equilibrium (CGE) model, and review the water resource CGE models on several study fields: water pricing, the optimal allocation of water resources, water rights and water market transactions, as well as other issues such as sustainability and flood. The time span of the reviewed CGE models is more than 20 years, and its spatial scale spreads from a small watershed at the county level to global water resource issue. On the other hand, the water issue is an important component of the socio-economic system, the impacts of water resource issues would spread to other sectors of the socio-economic system, so we think that CGE model is suitable to the study of water resource issue, summarize the fundamental characteristics of water resource CGE models, and work out three methods about water resource issues are linked to the CGE model. However, because of the linkage problems between water resource and the CGE model, as well as the data collection and other reasons, water resource CGE models are still at its immature and active development stage