IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i5p2978-d513574.html
   My bibliography  Save this article

The Paradox of the Virtual Water Trade Balance in the Mediterranean Region

Author

Listed:
  • Alexandros Gkatsikos

    (Department of Agriculture, Faculty of Agriculture, Forestry and Natural Environment, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

  • Konstadinos Mattas

    (Department of Agriculture, Faculty of Agriculture, Forestry and Natural Environment, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

Abstract

Climate change, water shortages and desertification threaten the economic and environmental sustainability in the Mediterranean. Limited rainfall and higher temperatures put agricultural production, which relies on water availability, in jeopardy. Thereupon, Mediterranean countries pursue agri-food resilience and water preservation through efficient water policies. Hence, water-deprived areas ought to import rather than produce water-intensive products to maintain water inventories and sustainability consequently. As this study examines the water sustainability for a Mediterranean water-scarce region with a particular focus on agriculture, the virtual water trade balance explores this hypothesis. A regional input–output model is constructed, and then total water consumption and the virtual water flows for each economic sector are estimated to determine the virtual water trade balance of the economy. Results indicate that the study area has a trade deficit and struggles economically but is a net importer of virtual water and secures water sustainability. As this virtual water deficit relies heavily on agriculture and originates in vast total water consumption rather than a large trade deficit, a paradox occurs; water-intensive cultivations and animals that consume 91.75% of water resources end up appearing to be water-saving. Further research is needed to strike a balance between economic growth and environmental protection.

Suggested Citation

  • Alexandros Gkatsikos & Konstadinos Mattas, 2021. "The Paradox of the Virtual Water Trade Balance in the Mediterranean Region," Sustainability, MDPI, vol. 13(5), pages 1-14, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:5:p:2978-:d:513574
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/5/2978/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/5/2978/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kathrin Specht & Rosemarie Siebert & Susanne Thomaier & Ulf B. Freisinger & Magdalena Sawicka & Axel Dierich & Dietrich Henckel & Maria Busse, 2015. "Zero-Acreage Farming in the City of Berlin: An Aggregated Stakeholder Perspective on Potential Benefits and Challenges," Sustainability, MDPI, vol. 7(4), pages 1-13, April.
    2. Ehsan Qasemipour & Farhad Tarahomi & Markus Pahlow & Seyed Saeed Malek Sadati & Ali Abbasi, 2020. "Assessment of Virtual Water Flows in Iran Using a Multi-Regional Input-Output Analysis," Sustainability, MDPI, vol. 12(18), pages 1-18, September.
    3. Loizou, Efstratios & Karelakis, Christos & Galanopoulos, Konstantinos & Mattas, Konstadinos, 2019. "The role of agriculture as a development tool for a regional economy," Agricultural Systems, Elsevier, vol. 173(C), pages 482-490.
    4. Llop, Maria, 2008. "Economic impact of alternative water policy scenarios in the Spanish production system: An input-output analysis," Ecological Economics, Elsevier, vol. 68(1-2), pages 288-294, December.
    5. Zhao, X. & Chen, B. & Yang, Z.F., 2009. "National water footprint in an input–output framework—A case study of China 2002," Ecological Modelling, Elsevier, vol. 220(2), pages 245-253.
    6. Mubako, Stanley & Lahiri, Sajal & Lant, Christopher, 2013. "Input–output analysis of virtual water transfers: Case study of California and Illinois," Ecological Economics, Elsevier, vol. 93(C), pages 230-238.
    7. Aubry, Christine & Kebir, Leïla, 2013. "Shortening food supply chains: A means for maintaining agriculture close to urban areas? The case of the French metropolitan area of Paris," Food Policy, Elsevier, vol. 41(C), pages 85-93.
    8. Roberto Roson & Martina Sartori, 2010. "Water Scarcity and Virtual Water Trade in the Mediterranean," Working Papers 2010_08, Department of Economics, University of Venice "Ca' Foscari".
    9. Nathaly M. Rivera, 2016. "Disaggregation of sectors in social accounting matrices using a customized Wolsky method: a comment on its estimation bias," Applied Economics Letters, Taylor & Francis Journals, vol. 23(11), pages 785-789, July.
    10. Bae, Jinwon & Dall'erba, Sandy, 2018. "Crop Production, Export of Virtual Water and Water-saving Strategies in Arizona," Ecological Economics, Elsevier, vol. 146(C), pages 148-156.
    11. Wolsky, Alan Martin, 1984. "Disaggregating Input-Output Models," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 283-291, May.
    12. Camps-Calvet, Marta & Langemeyer, Johannes & Calvet-Mir, Laura & Gómez-Baggethun, Erik, 2016. "Ecosystem services provided by urban gardens in Barcelona, Spain: Insights for policy and planning," Environmental Science & Policy, Elsevier, vol. 62(C), pages 14-23.
    13. Lampiris, Georgios & Karelakis, Christos & Loizou, Efstratios, 2018. "Evaluation of the impacts of CAP policy measures on a local economy: The case of a Greek region," Land Use Policy, Elsevier, vol. 77(C), pages 745-751.
    14. Erik Dietzenbacher & Esther Velazquez, 2007. "Analysing Andalusian Virtual Water Trade in an Input-Output Framework," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 185-196.
    15. Chittaranjan Ray & David McInnes & Matthew Sanderson, 2018. "Virtual water: its implications on agriculture and trade," Water International, Taylor & Francis Journals, vol. 43(6), pages 717-730, August.
    16. Georgios Lampiris & Christos Karelakis & Efstratios Loizou, 2020. "Comparison of non-survey techniques for constructing regional input–output tables," Annals of Operations Research, Springer, vol. 294(1), pages 225-266, November.
    17. 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)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alexandros Gkatsikos & Dimitrios Natos & Christos Staboulis & Konstadinos Mattas & Michail Tsagris & Apostolos Polymeros, 2022. "An Impact Assessment of the Young Farmers Scheme Policy on Regional Growth in Greece," Sustainability, MDPI, vol. 14(5), pages 1-12, March.
    2. Xiuli Liu & Rui Xiong & Pibin Guo & Lei Nie & Qinqin Shi & Wentao Li & Jing Cui, 2022. "Virtual Water Flow Pattern in the Yellow River Basin, China: An Analysis Based on a Multiregional Input–Output Model," IJERPH, MDPI, vol. 19(12), pages 1-24, June.

    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. Alexandros Gkatsikos & Konstadinos Mattas & Efstratios Loizou & Dimitrios Psaltopoulos, 2022. "The Neglected Water Rebound Effect of Income and Employment Growth," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 36(1), pages 379-398, January.
    2. 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.
    3. Martina Artmann & Katharina Sartison, 2018. "The Role of Urban Agriculture as a Nature-Based Solution: A Review for Developing a Systemic Assessment Framework," Sustainability, MDPI, vol. 10(6), pages 1-32, June.
    4. Jordan Hristov & Aleksandra Martinovska-Stojcheska & Yves Surry, 2016. "The Economic Role of Water in FYR Macedonia: An Input–Output Analysis and Implications for the Western Balkan Countries," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(04), pages 1-37, December.
    5. Abdeslam Boudhar & Said Boudhar & Aomar Ibourk, 2017. "An input–output framework for analysing relationships between economic sectors and water use and intersectoral water relationships in Morocco," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-25, December.
    6. Sun, J.X. & Yin, Y.L. & Sun, S.K. & Wang, Y.B. & Yu, X. & Yan, K., 2021. "Review on research status of virtual water: The perspective of accounting methods, impact assessment and limitations," Agricultural Water Management, Elsevier, vol. 243(C).
    7. Xia Xu & Fengping Wu & Qianwen Yu & Xiangnan Chen & Yue Zhao, 2022. "Invisible Effect of Virtual Water Transfer on Water Quantity Conflict in Transboundary Rivers—Taking Ili River as a Case," IJERPH, MDPI, vol. 19(15), pages 1-25, July.
    8. Ehsan Qasemipour & Ali Abbasi & Farhad Tarahomi, 2020. "Water-Saving Scenarios Based on Input–Output Analysis and Virtual Water Concept: A Case in Iran," Sustainability, MDPI, vol. 12(3), pages 1-16, January.
    9. Court, Christa D. & Munday, Max & Roberts, Annette & Turner, Karen, 2015. "Can hazardous waste supply chain ‘hotspots’ be identified using an input–output framework?," European Journal of Operational Research, Elsevier, vol. 241(1), pages 177-187.
    10. Chen, G.Q. & Chen, Z.M., 2011. "Greenhouse gas emissions and natural resources use by the world economy: Ecological input–output modeling," Ecological Modelling, Elsevier, vol. 222(14), pages 2362-2376.
    11. Stanislav Shmelev & Harrison Roger Brook, 2021. "Macro Sustainability across Countries: Key Sector Environmentally Extended Input-Output Analysis," Sustainability, MDPI, vol. 13(21), pages 1-46, October.
    12. 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.
    13. Alexandros Gkatsikos & Dimitrios Natos & Christos Staboulis & Konstadinos Mattas & Michail Tsagris & Apostolos Polymeros, 2022. "An Impact Assessment of the Young Farmers Scheme Policy on Regional Growth in Greece," Sustainability, MDPI, vol. 14(5), pages 1-12, March.
    14. White, David J. & Feng, Kuishuang & Sun, Laixiang & Hubacek, Klaus, 2015. "A hydro-economic MRIO analysis of the Haihe River Basin's water footprint and water stress," Ecological Modelling, Elsevier, vol. 318(C), pages 157-167.
    15. Lenzen, Manfred & Bhaduri, Anik & Moran, Daniel & Kanemoto, Keiichiro & Bekchanov, Maksud & Geschke, Arne & Foran, Barney, 2012. "The role of scarcity in global virtual water flows," Discussion Papers 133478, University of Bonn, Center for Development Research (ZEF).
    16. Guiliang Tian & Xiaosheng Han & Chen Zhang & Jiaojiao Li & Jining Liu, 2020. "Virtual Water Flows Embodied in International and Interprovincial Trade of Yellow River Basin: A Multiregional Input-Output Analysis," Sustainability, MDPI, vol. 12(3), pages 1-21, February.
    17. Chen, Zhan-Ming, 2014. "Inflationary effect of coal price change on the Chinese economy," Applied Energy, Elsevier, vol. 114(C), pages 301-309.
    18. Stanislav Edward Shmelev (ODID), "undated". "Environmentally Extended Input-Output Analysis of the UK Economy: Key Sector Analysis," QEH Working Papers qehwps183, Queen Elizabeth House, University of Oxford.
    19. Valeria Cosmo & Marie Hyland & Maria Llop, 2014. "Disentangling Water Usage in the European Union: A Decomposition Analysis," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(5), pages 1463-1479, March.
    20. Piotr Jurga & Efstratios Loizou & Stelios Rozakis, 2021. "Comparing Bioeconomy Potential at National vs. Regional Level Employing Input-Output Modeling," Energies, MDPI, vol. 14(6), pages 1-17, March.

    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:gam:jsusta:v:13:y:2021:i:5:p:2978-:d:513574. See general information about how to correct material in RePEc.

    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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.