Reflections About the Food–Energy–Water Nexus in a World …
21
4.3 Calibration
Our multiregion CGE model requires a consistent database that describes the
economic status quo of the four countries. The database is necessary for the calibration of the missing parameters. For our four countries, we developed the Social
Accounting Matrices (SAM) [64] accounting for the three economic sectors:
Sector 1: Food–Energy–Water (FEW)
Sector 2: Industry production
Sector 3: Public and private services.
The social accounting matrix is a structured representation of all relevant data. This
includes consumer demand or the use of private income for example. The database
must be consistent in the sense that the consumer spends its income on consumption
and savings without leaving money on the table according to our model equations.
This applies to values and quantities for all our economic agents.
We further assume that the initial data of country A is identical to the data set of
country D, and likewise countries B and C are initially identical, see Tables 6 and 7.
Table 6 Social accounting matrix countries A and D
Country A + D, initial data
FEW
Industry
Service
Sum
Consumer demand
70
120
185
375
Investment
5
40
100
145
Capital stock
50
60
100
210
Labor demand
20
90
200
310
Export
15
20
50
85
Import
20
30
35
85
Source Authors (2020) based on ECOMOD [21] and IEK-STE/SRH (2020)
Table 7 Social accounting matrix countries B and C
Country B + C, initial data
FEW
Industry
Service
Sum
Consumer demand
125
210
415
750
Investment
250
420
200
870
Capital stock
20
160
400
580
Labor demand
200
240
400
840
Export
20
360
35
415
Import
15
80
50
145
Source Authors (2020) based on ECOMOD [21] and IEK-STE/SRH (2020)