Abstract
The water quality improvement policies are urgently demanded in closed water areas today. There are, however, some conflicts of interests among economic agents, where application of comprehensive evaluation is required in order to check the feasibility of the policies. In this paper, we build the computable general equilibrium (CGE) model that catches the accumulation of the pollutant load, and analyze the incidence benefits induced by the water quality improvement policies in the closed water area. We formulate the mathematical programming with the equilibrium constraint that is CGE model and with the objective function that is the maximization of the social welfare. We distribute the reduction pollutant load in each regions and in each economic agents for water quality improvement by solving the MPEC with genetic algorithm (GA).
