The Value of the High Aswan Dam to the Egyptian Economy
ECOLOGICAL ECONOMICS 66 (2008) 117– 126 available at www.sciencedirect.com www.elsevier.com/locate/ecolecon The value of the high Aswan Dam to the Egyptian economy Kenneth M. Strzepeka,b,c, Gary W. Yohed, Richard S.J. Tole,f,g,⁎, Mark W. Rosegrantb aDepartment of Civil Engineering, University of Colorado, Boulder, CO, USA bInternational Food Policy Research Institute, Washington, DC, USA cInternational Max Planck Research School of Earth System Modelling, Hamburg, Germany dDepartment of Economics, Wesleyan University, Middletown, CT, USA eEconomic and Social Research Institute, Dublin, Ireland fInstitute for Environmental Studies, Vrije Universiteit, Amsterdam, The Netherlands gDepartment of Engineering and Public Policy, Carnegie Mellon University, Pittsburgh, PA, USA ARTICLE INFO ABSTRACT Article history: The High Aswan Dam converted a variable and uncertain flow of Nile river water into a Received 21 November 2006 predictable and controllable water supply stored in Lake Nasser. We use a computable Received in revised form 3 June 2007 general equilibrium model of the Egyptian economy to estimate the economic impact of the Accepted 26 August 2007 High Aswan Dam. We compare the actual 1997 economy to the 1997 economy as it would Available online 25 October 2007 have been if historical pre-dam Nile flows (drawn from a 72 year portrait) had applied (i.e., the Dam had not been built). The steady water supply sustained by the High Aswan Dam Keywords: increased transport productivity, and year round availability of predictable and adequate Egypt water sustained a shift towards more valuable summer crops. These static effects are worth High Aswan Dam EGP 4.9 billion.
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