The role of scarcity in global virtual water flows
Recent analyses of the evolution and structure of trade in virtual water revealed that the number of trade connections and volume of virtual water trade have more than doubled over the past two decades, and that developed countries increasingly draw on the rest of the world to alleviate the pressure on their domestic water resources. Our work builds on these studies, but fills three important gaps in the research on global virtual water trade. First, we note that in previous studies virtual water volumes are lumped together from countries experiencing vastly different degrees of water scarcity. We therefore incorporate water scarcity into assessments of virtual water flows. Second, we note that some previous studies assess virtual water networks only in terms of immediate water used for food production, but omit indirect virtual water used throughout the supply chains underlying all traded goods. In our analysis we therefore use input-output analysis to also include indirect virtual water. We note existing conflicting views about whether trade in virtual water can lead to overall savings in global water resources. We re-visit the Heckscher-Ohlin Theorem in the context of direct as well as indirect virtual water in order to determine whether international trade can be seen as a feasible demand management instrument in alleviating water scarcity. We find that the structure of global virtual water networks changes significantly after adjusting for water scarcity. In addition, when indirect virtual water is appraised the Heckscher-Ohlin Theorem can be validated.
|Date of creation:||Sep 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Fax: +49 228 / 73-5097
Web page: http://www.zef.de/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thomas Wiedmann, 2009. "Editorial: Carbon Footprint And Input-Output Analysis - An Introduction," Economic Systems Research, Taylor & Francis Journals, vol. 21(3), pages 175-186.
- Misato Sato, 2014.
"Embodied Carbon In Trade: A Survey Of The Empirical Literature,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 28(5), pages 831-861, December.
- Misato Sato, 2012. "Embodied carbon in trade: a survey of the empirical literature," GRI Working Papers 77, Grantham Research Institute on Climate Change and the Environment.
- Wiedmann, Thomas & Lenzen, Manfred & Turner, Karen & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 2: Review of input-output models for the assessment of environmental impacts embodied in trade," Ecological Economics, Elsevier, vol. 61(1), pages 15-26, February.
- Jan Oosterhaven & Dirk Stelder & Satoshi Inomata, 2008. "Estimating International Interindustry Linkages: Non-survey Simulations of the Asian-Pacific Economy," Economic Systems Research, Taylor & Francis Journals, vol. 20(4), pages 395-414.
- Duarte, Rosa & Sanchez-Choliz, Julio & Bielsa, Jorge, 2002. "Water use in the Spanish economy: an input-output approach," Ecological Economics, Elsevier, vol. 43(1), pages 71-85, November.
- Wiedmann, Thomas & Wilting, Harry C. & Lenzen, Manfred & Lutter, Stephan & Palm, Viveka, 2011. "Quo Vadis MRIO? Methodological, data and institutional requirements for multi-region input-output analysis," Ecological Economics, Elsevier, vol. 70(11), pages 1937-1945, September.
- Defourny, Jacques & Thorbecke, Erik, 1984. "Structural Path Analysis and Multiplier Decomposition within a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 94(373), pages 111-36, March.
- Munksgaard, Jesper & Pedersen, Klaus Alsted, 2001. "CO2 accounts for open economies: producer or consumer responsibility?," Energy Policy, Elsevier, vol. 29(4), pages 327-334, March.
- Edward Barbier, 2002.
"Water and Economic Growth,"
Centre for International Economic Studies Working Papers
2002-28, University of Adelaide, Centre for International Economic Studies.
- Glen Peters & Robbie Andrew & James Lennox, 2011. "Constructing An Environmentally-Extended Multi-Regional Input-Output Table Using The Gtap Database," Economic Systems Research, Taylor & Francis Journals, vol. 23(2), pages 131-152.
- Osmo Forssell & Karen Polenske, 1998. "Introduction: Input-Output and the Environment," Economic Systems Research, Taylor & Francis Journals, vol. 10(2), pages 91-97.
- Robert Dixon, 1996. "Inter-Industry Transactions and Input-Output Analysis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 29(3), pages 327-336.
- Wiedmann, Thomas, 2009. "A review of recent multi-region input-output models used for consumption-based emission and resource accounting," Ecological Economics, Elsevier, vol. 69(2), pages 211-222, December.
- Peters, Glen P., 2008. "From production-based to consumption-based national emission inventories," Ecological Economics, Elsevier, vol. 65(1), pages 13-23, March.
- Velazquez, Esther, 2006. "An input-output model of water consumption: Analysing intersectoral water relationships in Andalusia," Ecological Economics, Elsevier, vol. 56(2), pages 226-240, February.
- Michael Sonis & Geoffrey J. D. Hewings, 1998. "original: Economic complexity as network complication: Multiregional input-output structural path analysis," The Annals of Regional Science, Springer, vol. 32(3), pages 407-436.
- Guan, Dabo & Hubacek, Klaus, 2007. "Assessment of regional trade and virtual water flows in China," Ecological Economics, Elsevier, vol. 61(1), pages 159-170, February.
- Okadera, Tomohiro & Watanabe, Masataka & Xu, Kaiqin, 2006. "Analysis of water demand and water pollutant discharge using a regional input-output table: An application to the City of Chongqing, upstream of the Three Gorges Dam in China," Ecological Economics, Elsevier, vol. 58(2), pages 221-237, June.
- Ansink, Erik, 2010. "Refuting two claims about virtual water trade," Ecological Economics, Elsevier, vol. 69(10), pages 2027-2032, August.
- 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.
- Kumar, M. Dinesh & Singh, Om Prakash, . "Virtual water in global food and water policy making: is there a need for rethinking?," Papers published in Journals (Open Access) h036595, International Water Management Institute.
- M. Kumar & O. Singh, 2005. "Virtual Water in Global Food and Water Policy Making: Is There a Need for Rethinking?," Water Resources Management, Springer, vol. 19(6), pages 759-789, December.
When requesting a correction, please mention this item's handle: RePEc:ags:ubzefd:133478. 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: (AgEcon Search)
If references are entirely missing, you can add them using this form.