IDEAS home Printed from https://ideas.repec.org/p/ags/iaae09/51048.html
   My bibliography  Save this paper

Can virtual water 'trade' reduce water scarcity in semi-arid countries? The case of Spain

Author

Listed:
  • Garrido, Alberto
  • Novo, Paula
  • Rodriguez Casado, Roberto
  • Varela-Ortega, Consuelo

Abstract

Agricultural trade is by far the largest vehicle to ‘move’ water virtually around the world. Observing that most countries import and export water embedded in the exchanged products, the objective of this study is to assess the virtual water ‘trade’ in Spain for the period 1997-2006. We differentiate between the green and blue components of virtual water from a hydrological and economic perspective. The combination of spatial and time dimensions offers a unique empirical setting to determine whether virtual water ‘trade’ can contribute to reduce water scarcity. The study reveals that Spain is a net ‘importer’ of virtual water. By far the largest virtual water ‘imports’ are linked to cereals and animal feed products whilst the virtual water ‘exports’ are linked to exports of animal products, fruits and vegetables. Virtual water ‘trade’ is one way to reduce the vulnerability of the agri-food sector to climate instability. It reinforces the competitive advantages of its natural endowments capital investments in agriculture. The econometric analysis using provincial water exports water exports are invariable to cyclical water scarcity, and largely explained by fixed factors. Virtual water ‘trade’ does not exacerbate water scarcity, though it is certainly a source of pressure for resources management.

Suggested Citation

  • Garrido, Alberto & Novo, Paula & Rodriguez Casado, Roberto & Varela-Ortega, Consuelo, 2009. "Can virtual water 'trade' reduce water scarcity in semi-arid countries? The case of Spain," 2009 Conference, August 16-22, 2009, Beijing, China 51048, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51048
    DOI: 10.22004/ag.econ.51048
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/51048/files/Contributed%20paper%20330.IAAE%202009.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.51048?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Varela-Ortega, C., 2007. "Policy-driven determinants of irrigation development and environmental sustainability: a case study in Spain," IWMI Books, Reports H040612, International Water Management Institute.
    2. Wichelns, Dennis, 2004. "The policy relevance of virtual water can be enhanced by considering comparative advantages," Agricultural Water Management, Elsevier, vol. 66(1), pages 49-63, April.
    3. Dik Roth & Jeroen Warner, 2008. "Virtual water: Virtuous impact? The unsteady state of virtual water," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 25(2), pages 257-270, June.
    4. Eva Iglesias & Alberto Garrido & Almudena Gómez-Ramos, 2007. "Economic drought management index to evaluate water institutions' performance under uncertainty ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(1), pages 17-38, March.
    5. Mitchel Y. Abolafia (ed.), 2005. "Markets," Books, Edward Elgar Publishing, number 2788.
    6. Pulido-Velazquez, Manuel & Andreu, Joaqui­n & Sahuquillo, Andrés & Pulido-Velazquez, David, 2008. "Hydro-economic river basin modelling: The application of a holistic surface-groundwater model to assess opportunity costs of water use in Spain," Ecological Economics, Elsevier, vol. 66(1), pages 51-65, May.
    7. Iglesias, Eva & Garrido, Alberto & Gomez-Ramos, Almudena, 2003. "Evaluation of drought management in irrigated areas," Agricultural Economics, Blackwell, vol. 29(2), pages 211-229, October.
    8. Iglesias, Eva & Garrido, Alberto & Gomez-Ramos, Almudena, 2007. "Economic drought management index to evaluate water institutions' performance under uncertainty," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(01), pages 1-22.
    9. Javier Calatrava & Alberto Garrido, 2005. "Spot water markets and risk in water supply," Agricultural Economics, International Association of Agricultural Economists, vol. 33(2), pages 131-143, September.
    10. Gomez-Limon, J. A. & Berbel, J., 2000. "Multicriteria analysis of derived water demand functions: a Spanish case study," Agricultural Systems, Elsevier, vol. 63(1), pages 49-72, January.
    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. Anastasia B. Likhacheva & Igor A. Makarov, 2014. "The Virtual Water Of Siberia And The Russian Far East For The Asia-Pacific Region: Global Gains Vs Regional Sustainability," HSE Working papers WP BRP 10/IR/2014, National Research University Higher School of Economics.

    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. Novo, P. & Garrido, A. & Varela-Ortega, C., 2009. "Are virtual water "flows" in Spanish grain trade consistent with relative water scarcity?," Ecological Economics, Elsevier, vol. 68(5), pages 1454-1464, March.
    2. Iglesias, Eva & Báez, Karen & Diaz-Ambrona, Carlos H., 2016. "Assessing drought risk in Mediterranean Dehesa grazing lands," Agricultural Systems, Elsevier, vol. 149(C), pages 65-74.
    3. Dannele E. Peck & Richard M. Adams, 2010. "Farm-level impacts of prolonged drought: is a multiyear event more than the sum of its parts?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), pages 43-60, January.
    4. Ben Groom & Phoebe Koundouri & Celine Nauges & Alban Thomas, 2008. "The story of the moment: risk averse cypriot farmers respond to drought management," Applied Economics, Taylor & Francis Journals, vol. 40(3), pages 315-326.
    5. Gil, Marina & Garrido, Alberto & Gómez-Ramos, Almudena, 2011. "Economic analysis of drought risk: An application for irrigated agriculture in Spain," Agricultural Water Management, Elsevier, vol. 98(5), pages 823-833, March.
    6. 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).
    7. Dennis Wichelns, 2010. "Virtual Water: A Helpful Perspective, but not a Sufficient Policy Criterion," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(10), pages 2203-2219, August.
    8. Erik Gawel & Kristina Bernsen, 2013. "What is Wrong with Virtual Water Trading? On the Limitations of the Virtual Water Concept," Environment and Planning C, , vol. 31(1), pages 168-181, February.
    9. Calatrava-Leyva, Javier & Martinez-Granados, David, 2012. "El valor del uso del agua en el regadío de la cuenca del Segura y en las zonas regables del trasvase Tajo-Segura," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 12(01), June.
    10. Dono, Gabriele & Mazzapicchio, Graziano, 2010. "Uncertain water supply in an irrigated Mediterranean area: An analysis of the possible economic impact of climate change on the farm sector," Agricultural Systems, Elsevier, vol. 103(6), pages 361-370, July.
    11. Montilla-López, Nazaret M. & Gómez-Limón, José A. & Gutiérrez-Martín, Carlos, 2018. "Sharing a river: Potential performance of a water bank for reallocating irrigation water," Agricultural Water Management, Elsevier, vol. 200(C), pages 47-59.
    12. Peck, Dannele E. & Adams, Richard M., 2010. "Farm-level impacts of prolonged drought: is a multiyear event more than the sum of its parts?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(01), pages 1-18.
    13. Alberto Garrido, 2007. "Water markets design and evidence from experimental economics," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(3), pages 311-330, November.
    14. Christina Moulogianni & Thomas Bournaris, 2021. "Assessing the Impacts of Rural Development Plan Measures on the Sustainability of Agricultural Holdings Using a PMP Model," Land, MDPI, vol. 10(5), pages 1-13, April.
    15. Sağlam, Yiğit, 2011. "Optimal Pricing of Water: Optimal Departures from the Inverse Elasticity Rule," Working Paper Series 18553, Victoria University of Wellington, School of Economics and Finance.
    16. Sousa, Carlos M.P. & Bradley, Frank, 2008. "Antecedents of international pricing adaptation and export performance," Journal of World Business, Elsevier, vol. 43(3), pages 307-320, July.
    17. Basil Manos & Thomas Bournaris & Mohd Kamruzzaman & Moss Begum & Ara Anjuman & Jason Papathanasiou, 2006. "Regional Impact of Irrigation Water Pricing in Greece under Alternative Scenarios of European Policy: A Multicriteria Analysis," Regional Studies, Taylor & Francis Journals, vol. 40(9), pages 1055-1068.
    18. Barry Eichengreen & Poonam Gupta & Ashoka Mody, 2008. "Sudden Stops and IMF-Supported Programs," NBER Chapters, in: Financial Markets Volatility and Performance in Emerging Markets, pages 219-266, National Bureau of Economic Research, Inc.
    19. D Büttner & B. Hayo, 2012. "EMU-related news and financial markets in the Czech Republic, Hungary and Poland," Applied Economics, Taylor & Francis Journals, vol. 44(31), pages 4037-4053, November.
    20. Horst, Ulrich & Hu, Ying & Imkeller, Peter & Réveillac, Anthony & Zhang, Jianing, 2014. "Forward–backward systems for expected utility maximization," Stochastic Processes and their Applications, Elsevier, vol. 124(5), pages 1813-1848.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:ags:iaae09:51048. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    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.