A Water-Focused Social Accounting Matrix for Jordan

The 2015 Water-Focused Social Accounting Matrix (WF-SAM) for Jordan represents a significant enhancement over the existing SAM introduced by (Raouf et al., 2021). This enhancement lies in its comprehensive integration of the water sector at the micro-account level. Constructed with thorough attention to detail, the 2015 WF-SAM for Jordan draws upon a triad of distinct data sources. Firstly, it incorporates micro-account data derived from the foundational SAM developed by Raouf et al. in 2021, acknowledged as the most contemporary SAM for Jordan, benefiting from current national and international data sources. Secondly, a contribution stems from the 2017 reports of the General Budget Department (GBD), furnishing actual financial allocations of Jordanian water utilities (General Budget Department, 2017a, 2017f, 2017e, 2017d, 2017c, 2017b). Adapting these allocations into novel account totals and deficits within the WF-SAM framework amplifies its comprehensiveness. The third data source comes from (MWI, 2015)and (Salamah, 2021), disclosing the nuanced cash flow interplay between the water-centric accounts and the entire economy, for instance, the municipal water sector allocates 12% of its total expenditures to the electricity commodity, establishing a symbiotic relationship. This calibrated interdependence of sectors elevates the precision and disaggregation of the 2015 WF-SAM for Jordan.

Out of the convention in this documentation, the 2015 JO SAM by (Raouf et al., 2021) is used in constructing proto-SAM and is identified as "Base-SAM." To enhance and modernize the representation of the water sector within the Base-SAM, budgetary components sourced from audited national public budget documents were carefully correlated with corresponding accounts within the SAM structure, adhering to the established ISIC standard economic classifications. This alignment resulted in the creation of a preliminary SAM, although it entailed further refinement to achieve equilibrium. Employing the cross-entropy SAM estimation algorithm, as set forth by (Robinson et al., 1998)), facilitated the fulfilment of the ultimate balanced state. The resultant Water-Focused Social Accounting Matrix (WF-SAM) is enclosed within the attached Excel workbook.

The WF-SAM for Jordan, includes 155 accounts, 57 activities, 63 commodities, one transaction cost account, 13-factor accounts, ten household accounts plus one enterprise account, and seven government-related accounts: one for the government itself and six for direct and indirect taxes and subsidies, with one saving and investment account and one currency exchange account, the rest of the world is represented in one account,” RoW.” The water sector is represented in three commodity accounts, two activity accounts, and one water subsidies account.

This dataset (WF-SAM) enables future research on an array of scenarios and shocks to assess policymakers in the ex-ante assessment of policy options and market conditions. The findings of this study provide valuable insights into the interplay between the water sector and the Jordanian economy and can inform policy decisions related to water resource management and development.