Impact of Water Policy on Chinese Economy Using DCGE Model Based on SEEA

China's water resource problem is much more serious following rapid economic growth. To sustain development of water resource and balance economic system, it is necessary to investigate the effect of water resources on the economic in the long term. This paper demonstrates the water resource flow in China using Social Accounting Matrix (SAM) based on System of Environmental-Economic Accounting (SEEA) in 2017. The trend of water consumption and economy development of China is evaluated from 2017 to 2020. Meanwhile the impact of water policy change on economic growth is assessed by taking advantage of Dynamic Computable General Equilibrium (DCGE) model. The results indicate that China's economy is subject to negative effect under water control policy. The price policy change on ground water and underground water has apparent difference on sectors for a period of four years. Moreover, the water resource demand keeps rising with the social development.