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Virtual Water Trade in North America - Il commercio di “acqua virtuale” nell’America del Nord

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Abstract

The concept of virtual water – the amount of water used during the entire production chain of goods – represents a new tool for policymakers in water-scarce countries to shape policies in ways that improve water use efficiency. The present study extends work on the virtual water concept by testing a causality relationship between national water savings and economic growth of a water scarce country. Results of this study are twofold: (1) average annual precipitations explain the virtual water trade pattern in Mexico, and (2) there exists a Granger-causality relationship between agricultural and industrial growth and the annual volume of water saved in Mexico due to its acquisition of water-intensive crops from its North American Free Trade Agreement partners – Canada and the United States. -Il concetto di “acqua virtuale”, cioè la quantità d’acqua utilizzata durante il ciclo produttivo delle merci, rappresenta un nuovo strumento a disposizione dei governi dei paesi con scarse riserve idriche per delineare politiche atte a migliorare l’efficienza idrica. In questo studio tale concetto viene esaminato sottoponendo a test di relazione di causalità la variabile risparmio idrico (nei paesi con scarse riserve) e la variabile crescita economica. I risultati dello studio sono: (1) la media delle precipitazioni annuali spiega l’andamento del commercio di acqua virtuale; (2) esiste una relazione di Granger-causalità tra la crescita sia agricola che industriale e il risparmio annuo di acqua effettuato in Messico attraverso l’importazione dai suoi partner NAFTA, il Canada e gli Stati Uniti, di produzioni alimentari che necessitano di molta acqua.

Suggested Citation

  • Affuso, Ermanno & Mixon, Jr., Franklin G., 2014. "Virtual Water Trade in North America - Il commercio di “acqua virtuale” nell’America del Nord," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 67(3), pages 319-336.
  • Handle: RePEc:ris:ecoint:0722
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    More about this item

    Keywords

    Virtual Water Trade; International Trade Theory; NAFTA; Granger-Causality;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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