Andalusian agricultural sectors are relatively small, but consume by 90% of the available water resources. More than 50% of the final demands for agricultural products are exported to other Spanish regions or abroad. Using a virtual water concept with an input-output framework, we find that a substantial part of the Andalusian water consumption is necessary for exports. Considering the water content of its trade, Andalusia is found to be a net exporter of water, whereas it is an extremely arid region. Examining regional policy aspects, a reduction in the exports abroad of agricultural products yields considerable benefits in terms of water savings and only moderate costs.
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Paper provided by Universidad Pablo de Olavide, Departamento de Economía in its series Working Papers with number
06.06.
Find related papers by JEL classification: R15 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
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