IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-21-00276.html
   My bibliography  Save this article

Assessment of interstate dynamics of virtual water trade flows in primary crops production: Empirical evidence from India

Author

Listed:
  • Rita Rani Chopra

    (Indian Institute of Technology Ropar, Punjab, India)

  • Smruti Ranjan Behera

    (Indian Institute of Technology Ropar, Punjab, India)

Abstract

This study examines the interstate virtual water trade flows embodied in wheat and rice products across India's different states and union territories during 1994–2017. Using the extended Leontief's input-output model, this study links the net virtual water trade flows with water scarcity concentration in Indian states. The input-output analyses decompose the water consumption into domestic demand and exports by the states. Empirical results show that the northern states have massive wheat and rice production, leading to the highest virtual water outflows to western and southern water-scarce states in India. Further, results exhibit that virtual water trade has substantial pressure on water-scarce states to become water-saving states. However, we find that water endowments, unsustainable water flows, and diversity lead to water scarcity concentration in water-abundant states.

Suggested Citation

  • Rita Rani Chopra & Smruti Ranjan Behera, 2021. "Assessment of interstate dynamics of virtual water trade flows in primary crops production: Empirical evidence from India," Economics Bulletin, AccessEcon, vol. 41(3), pages 1860-1875.
  • Handle: RePEc:ebl:ecbull:eb-21-00276
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2021/Volume41/EB-21-V41-I3-P158.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Michael Webber & Britt Crow-Miller & Sarah Rogers, 2017. "The South–North Water Transfer Project: remaking the geography of China," Regional Studies, Taylor & Francis Journals, vol. 51(3), pages 370-382, March.
    2. Nordhagen, Stella & Pascual, Unai, 2013. "The Impact of Climate Shocks on Seed Purchase Decisions in Malawi: Implications for Climate Change Adaptation," World Development, Elsevier, vol. 43(C), pages 238-251.
    3. Uris L. C. Baldos & Thomas W. Hertel & Frances C. Moore, 2019. "Understanding the Spatial Distribution of Welfare Impacts of Global Warming on Agriculture and its Drivers," American Journal of Agricultural Economics, John Wiley & Sons, vol. 101(5), pages 1455-1472, October.
    4. Taraz, Vis, 2018. "Can farmers adapt to higher temperatures? Evidence from India," World Development, Elsevier, vol. 112(C), pages 205-219.
    5. Uris L C Baldos & Thomas W Hertel & Frances C Moore, 2019. "Understanding the Spatial Distribution of Welfare Impacts of Global Warming on Agriculture and Its Drivers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(5), pages 1455-1472.
    6. Ercin, A. Ertug & Mekonnen, Mesfin M. & Hoekstra, Arjen Y., 2013. "Sustainability of national consumption from a water resources perspective: The case study for France," Ecological Economics, Elsevier, vol. 88(C), pages 133-147.
    7. Banerji, A. & Meenakshi, J.V. & Khanna, Gauri, 2012. "Social contracts, markets and efficiency: Groundwater irrigation in North India," Journal of Development Economics, Elsevier, vol. 98(2), pages 228-237.
    8. Lenzen, Manfred & Moran, Daniel & Bhaduri, Anik & Kanemoto, Keiichiro & Bekchanov, Maksud & Geschke, Arne & Foran, Barney, 2013. "International trade of scarce water," Ecological Economics, Elsevier, vol. 94(C), pages 78-85.
    9. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, J.S. & Chen, G.Q. & Hayat, T. & Alsaedi, A., 2015. "Mercury emissions by Beijing׳s fossil energy consumption: Based on environmentally extended input–output analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1167-1175.
    2. Veeshan Rayamajhee & Wenmei Guo & Alok K. Bohara, 2021. "The Impact of Climate Change on Rice Production in Nepal," Economics of Disasters and Climate Change, Springer, vol. 5(1), pages 111-134, April.
    3. Zhang, Chao & Anadon, Laura Diaz, 2014. "A multi-regional input–output analysis of domestic virtual water trade and provincial water footprint in China," Ecological Economics, Elsevier, vol. 100(C), pages 159-172.
    4. Arjen Y. Hoekstra, 2017. "Water Footprint Assessment: Evolvement of a New Research Field," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(10), pages 3061-3081, August.
    5. Kan, Siyi & Chen, Bin & Chen, Guoqian, 2019. "Worldwide energy use across global supply chains: Decoupled from economic growth?," Applied Energy, Elsevier, vol. 250(C), pages 1235-1245.
    6. Xueting Zhao, 2014. "China's Inter-regional Trade of Virtual Water: a Multi-regional Input-output Modeling," Working Papers Working Paper 2014-04, Regional Research Institute, West Virginia University.
    7. Gouel, Christophe & Laborde, David, 2021. "The crucial role of domestic and international market-mediated adaptation to climate change," Journal of Environmental Economics and Management, Elsevier, vol. 106(C).
    8. Kan, S.Y. & Chen, B. & Wu, X.F. & Chen, Z.M. & Chen, G.Q., 2019. "Natural gas overview for world economy: From primary supply to final demand via global supply chains," Energy Policy, Elsevier, vol. 124(C), pages 215-225.
    9. Han, M.Y. & Chen, G.Q. & Mustafa, M.T. & Hayat, T. & Shao, Ling & Li, J.S. & Xia, X.H. & Ji, Xi, 2015. "Embodied water for urban economy: A three-scale input–output analysis for Beijing 2010," Ecological Modelling, Elsevier, vol. 318(C), pages 19-25.
    10. Liu, Yating & Chen, Bin, 2020. "Water-energy scarcity nexus risk in the national trade system based on multiregional input-output and network environ analyses," Applied Energy, Elsevier, vol. 268(C).
    11. Xueting Zhao & Randall W. Jackson, 2016. "China’s Inter-Regional Trade of Virtual Water — A Multi-Regional Input–Output Table Based Analysis," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 1-28, June.
    12. Duan, Cuncun & Chen, Bin, 2020. "Driving factors of water-energy nexus in China," Applied Energy, Elsevier, vol. 257(C).
    13. Meng, Jing & Zhang, Zengkai & Mi, Zhifu & Anadon, Laura Diaz & Zheng, Heran & Zhang, Bo & Shan, Yuli & Guan, Dabo, 2018. "The role of intermediate trade in the change of carbon flows within China," Energy Economics, Elsevier, vol. 76(C), pages 303-312.
    14. Guangyao Deng & Liujuan Wang & Yanan Song, 2015. "Effect of Variation of Water-Use Efficiency on Structure of Virtual Water Trade - Analysis Based on Input–Output Model," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(8), pages 2947-2965, June.
    15. Kharrazi, Ali & Sato, Masahiro & Yarime, Masaru & Nakayama, Hirofumi & Yu, Yadong & Kraines, Steven, 2015. "Examining the resilience of national energy systems: Measurements of diversity in production-based and consumption-based electricity in the globalization of trade networks," Energy Policy, Elsevier, vol. 87(C), pages 455-464.
    16. Court, Christa D., 2012. "Enhancing U.S. hazardous waste accounting through economic modeling," Ecological Economics, Elsevier, vol. 83(C), pages 79-89.
    17. Chang, Yuan & Ries, Robert J. & Wang, Yaowu, 2013. "Life-cycle energy of residential buildings in China," Energy Policy, Elsevier, vol. 62(C), pages 656-664.
    18. Arunima Malik & Jun Lan, 2016. "The role of outsourcing in driving global carbon emissions," Economic Systems Research, Taylor & Francis Journals, vol. 28(2), pages 168-182, June.
    19. Arik Levinson, 2009. "Technology, International Trade, and Pollution from US Manufacturing," American Economic Review, American Economic Association, vol. 99(5), pages 2177-2192, December.
    20. Daniel Moran & Richard Wood, 2014. "Convergence Between The Eora, Wiod, Exiobase, And Openeu'S Consumption-Based Carbon Accounts," Economic Systems Research, Taylor & Francis Journals, vol. 26(3), pages 245-261, September.

    More about this item

    Keywords

    Virtual water trade; Water footprint; Water consumption; Agriculture and Environment; Water efficiency; Input-Output analysis;
    All these keywords.

    JEL classification:

    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-21-00276. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.