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The relation between international trade and freshwater scarcity

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  • Hoekstra, Arjen

Abstract

It is becoming increasingly important to put freshwater issues in a global context. Local water depletion and pollution are often closely tied to the structure of the global economy. With increasing trade between nations and continents, water is more frequently used to produce exported goods. International trade in commodities implies long-distance transfers of water in virtual form, where virtual water is understood as the volume of water that has been used to produce a commodity and that is thus virtually embedded in it. Knowledge about the virtual-water flows entering and leaving a country can cast a completely new light on the actual water scarcity of a country. For example, Jordan imports about 5 to 7 billion m3 of virtual water per year, which is in sharp contrast with the 1 billion m3 of water withdrawn annually from domestic water sources. This means that people in Jordan apparently survive owing to the import of water-intensive commodities from elsewhere, for example the USA.

Suggested Citation

  • Hoekstra, Arjen, 2010. "The relation between international trade and freshwater scarcity," WTO Staff Working Papers ERSD-2010-05, World Trade Organization (WTO), Economic Research and Statistics Division.
    • Handle: RePEc:zbw:wtowps:ersd201005
    DOI: 10.30875/3563958d-en
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    References listed on IDEAS

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    Cited by:

    1. Elina Lehikoinen & Tuure Parviainen & Juha Helenius & Mika Jalava & Arto O. Salonen & Matti Kummu, 2019. "Cattle Production for Exports in Water-Abundant Areas: The Case of Finland," Sustainability, MDPI, vol. 11(4), pages 1-20, February.
    2. Pier Paolo Miglietta & Domenico Morrone, 2018. "Managing Water Sustainability: Virtual Water Flows and Economic Water Productivity Assessment of the Wine Trade between Italy and the Balkans," Sustainability, MDPI, vol. 10(2), pages 1-19, February.
    3. Alexandre Le Vernoy & Patrick Messerlin, 2010. "Water and the WTO: Don’t kill the messenger," Sciences Po publications info:hdl:2441/5l6uh8ogmqi, Sciences Po.
    4. Niemeyer, Insa & Garrido, Alberto, 2011. "Latin American Agricultural Trade: The Role of the WTO in Sustainable Virtual Water Flows," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114615, European Association of Agricultural Economists.
    5. Marta Antonelli & Martina Sartori, 2014. "Unfolding the Potential of the Virtual Water Concept. What is still under debate?," IEFE Working Papers 74, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    6. Rodolfo Metulini & Stefania Tamea & Francesco Laio & Massimo Riccaboni, 2016. "The Water Suitcase of Migrants: Assessing Virtual Water Fluxes Associated to Human Migration," PLOS ONE, Public Library of Science, vol. 11(4), pages 1-13, April.
    7. Reimer, Jeffrey J., 2012. "On the economics of virtual water trade," Ecological Economics, Elsevier, vol. 75(C), pages 135-139.
    8. Ankai Xu, 2018. "Trade in Virtual Water: Do Property Rights Matter?," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 32(8), pages 2585-2609, June.
    9. Temmerman, Fitzgerald, 2011. "Virtual Water Trade and International Trade Law," Papers 212, World Trade Institute.
    10. repec:spo:wpecon:info:hdl:2441/5l6uh8ogmqildh09h2qa1ccc1 is not listed on IDEAS
    11. Alexandre Le Vernoy & Patrick Messerlin, 2010. "Water and the WTO: Don’t kill the messenger," SciencePo Working papers Main hal-03461720, HAL.
    12. repec:hal:spmain:info:hdl:2441/5l6uh8ogmqildh09h2qa1ccc1 is not listed on IDEAS
    13. Patrick MESSERLIN, 2011. "Climate, trade and water: A “grand coalition”?," Working Papers P23, FERDI.
    14. Duarte, Rosa & Pinilla, Vicente & Serrano, Ana, 2014. "The effect of globalisation on water consumption: A case study of the Spanish virtual water trade, 1849–1935," Ecological Economics, Elsevier, vol. 100(C), pages 96-105.
    15. Duarte, Rosa & Pinilla, Vicente & Serrano, Ana, 2019. "Long Term Drivers of Global Virtual Water Trade: A Trade Gravity Approach for 1965–2010," Ecological Economics, Elsevier, vol. 156(C), pages 318-326.
    16. Patrick MESSERLIN, 2011. "Climate, trade and water: A “grand coalition”?," Working Papers P23, FERDI.
    17. repec:hal:wpspec:info:hdl:2441/5l6uh8ogmqildh09h2qa1ccc1 is not listed on IDEAS
    18. Gawel, Erik & Bernsen, Kristina, 2011. "What is wrong with virtual water trading?," UFZ Discussion Papers 1/2011, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).

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