Developing a Multi-Sectoral Dynamic Applied General Equilibrium Model to Simulate the Emission Reduction of Nitrogen and Phosphorus at a Catchment Extent

Lake eutrophication due to the accumulation of nitrogen and phosphorus has recently been identified as one of the great threats to water quality in lakes. In this paper, we developed a multi-sectoral dynamic applied general equilibrium model (MDAGEM) to explore the strategies to reduce the emission of nitrogen and phosphorus at the catchment extent. A case study was conducted in the Lake Wuliangsuhai Catchment (LWC) of Inner Mongolia by using MADGEM. According to the simulation results, we conclude that although reduction of nitrogen and phosphorus might play a negative effect on economy at a short term, the measures currently taken to control the emission of nitrogen and phosphorus will do well for the long-term effects. What we need to do now is to seek an equilibrium point between the emission reduction and economic development.