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Water Scarcity and Virtual Water Trade in the Mediterranean

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  • Roberto Roson

    ()
    (Department of Economics, University Of Venice Cà Foscari)

  • Martina Sartori

    ()
    (University of Milan)

Abstract

Virtual water trade refers to the implicit content of water in the production of goods and services. When trade is undertaken, there is an implicit exchange of water. Furthermore, when water gets scarce, water intensive goods become more expensive to produce and the economy compensates through higher water imports.This paper is about applying the concept of virtual water to the problem of future water scarcity in the Mediterranean area, also induced by the climate change. The aim is assessing to what extent water trade is a viable adaptation option to the problem of water scarcity. To this end, a computable general equilibrium model is extended with satellite data on sectoral water consumption, and used to assess future scenarios of water availability.It is found that virtual trade may curb the negative effect of water scarcity, yet the consequences in terms of income and welfare remain quite significant, especially for some regions.

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File URL: http://www.unive.it/media/allegato/DIP/Economia/Working_papers/Working_papers_2010/WP_DSE_roson_sartori_08_10.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2010_08.

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Length: 13
Date of creation: 2010
Date of revision:
Handle: RePEc:ven:wpaper:2010_08

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Related research

Keywords: Computable General Equilibrium Models; Water; Virtual Water; Water Scarcity; Climate Change;

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  1. Maria Berrittella & Katrin Rehdanz & Roberto Roson & Richard S.J. Tol, 2006. "The Economic Impact Of Water Pricing: A Computable General Equilibrium Analysis," Working Papers FNU-96, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2006.
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Cited by:
  1. Roberto Ponce & Francesco Bosello & Carlo Giupponi, 2012. "Integrating Water Resources into Computable General Equilibrium Models - A Survey," Working Papers 2012.57, Fondazione Eni Enrico Mattei.
  2. Roberto Roson & Martina Sartori, 2012. "Climate Change, Tourism and Water Resources in the Mediterranean:a General Equilibrium Analysis," Working Papers 2012_05, Department of Economics, University of Venice "Ca' Foscari".

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