Gross domestic product

Abstract

The regional economic simulation model RIWU (Regional Industrial Water Use) forms the basis for the DANUBIA model Economy presented in this chapter. RIWU allows for the modelling of economic development, expressed as the gross domestic product (GDP), and industrial water consumption at the level of the district. The gross domestic product is the decisive variable for measuring economic performance and serves as both the basis for estimating the volume of industrial water consumption and quantifi cation of the effects of climate-induced changes in the usable water supply on economic development. A central goal of the model is to explain spatial structures of economic development for different water supplies. Industrial water abstraction (WAUF) is positively associated with the level of economic activity, represented by the value added (WI), and is negatively associated with the price of water (PEWA). The results for the gross domestic product by district as modelled by RIWU are mapped and refl ect quite well the spatial distribution of gross domestic product.