IDEAS home Printed from https://ideas.repec.org/p/ekd/002625/2827.html
   My bibliography  Save this paper

Water Scarcity and Virtual Water Trade in the Mediterranean

Author

Listed:
  • Roberto Roson
  • Martina Sartori

Abstract

Virtual water trade refers to the implicit content of water in the production of goods and services. When trade is undertaken, there is an implicit exchange of water. Furthermore, when water gets scarce, water intensive goods become more expensive to produce and the economy compensates through higher water imports. This paper is about applying the concept of virtual water trade to the problem of future water scarcity in the Mediterranean area, also induced by the climate change. The aim is assessing to what extent water trade is a viable adaptation option to the problem of water scarcity.A computable general equilibrium model is extended with satellite data on sectoral water consumption, and used to assess future scenarios of water availability.It is found that virtual trade may curb the negative effect of water scarcity, yet the consequences in terms of income and welfare remain quite significant, especially for some regions. This suggests that specific water policies (water supply and demand management) will be needed.

Suggested Citation

  • Roberto Roson & Martina Sartori, 2011. "Water Scarcity and Virtual Water Trade in the Mediterranean," EcoMod2011 2827, EcoMod.
    • Handle: RePEc:ekd:002625:2827
    as

    Download full text from publisher

    File URL: http://ecomod.net/system/files/vwtm2.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    2. Anders Isaksson, 2009. "The UNIDO World Productivity Database: An Overview," International Productivity Monitor, Centre for the Study of Living Standards, vol. 18, pages 38-50, Spring.
    3. Folster, Stefan & Henrekson, Magnus, 2001. "Growth effects of government expenditure and taxation in rich countries," European Economic Review, Elsevier, vol. 45(8), pages 1501-1520, August.
    4. Mr. Boileau Loko & Mame Astou Diouf, 2009. "Revisiting the Determinants of Productivity Growth - What’s new?," IMF Working Papers 2009/225, International Monetary Fund.
    5. Berrittella, Maria & Rehdanz, Katrin & Roson, Roberto & Tol, Richard S.J., 2007. "The Economic Impact of Water Taxes: A Computable General Equilibrium Analysis with an International Data Set," Conference papers 331655, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Malcolm, Gerard, 1998. "Adjusting Tax Rates In The Gtap Data Base," Technical Papers 28721, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    8. Brockmeier, Martina, 2001. "A Graphical Exposition Of The Gtap Model," Technical Papers 28706, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Itakura, Ken & Hertel, Thomas & Jeff Reimer, 2003. "The Contribution of Productivity Linkages to the General Equilibrium Analysis of Free Trade Agreements," GTAP Working Papers 1193, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    10. Dixon, Peter B., 1990. "A general equilibrium approach to public utility pricing: determining prices for a water authority," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 745-767.
    11. Velazquez, Esther, 2007. "Water trade in Andalusia. Virtual water: An alternative way to manage water use," Ecological Economics, Elsevier, vol. 63(1), pages 201-208, June.
    12. Itakura, Ken & Hertel, Thomas & Jeff Reimer, 2003. "The Contribution of Productivity Linkages to the General Equilibrium Analysis of Free Trade Agreements," GTAP Working Papers 1193, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    13. Noelwah R. Netusil & Thomas R. Harris & Chang K. Seung & Jeffrey E. Englin, 2000. "Impacts of water reallocation: A combined computable general equilibrium and recreation demand model approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(4), pages 473-487.
    14. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    15. Burfisher, Mary & Robinson, Sherman & Thierfelder, Karen, 1992. "Agricultural and food policies in a United States-Mexico free trade area," The North American Journal of Economics and Finance, Elsevier, vol. 3(2), pages 117-139.
    16. Brockmeier, Martina, 2001. "A Graphical Exposition of the GTAP Model," GTAP Technical Papers 311, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    17. Kojima, Kiyoshi, 1973. "A Macroeconomic Approach to Foreign Direct Investment," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 14(1), pages 1-21, June.
    18. 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.
    19. Malcolm, Gerard, 1998. "Adjusting Tax Rates in the GTAP Data Base," GTAP Technical Papers 315, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    20. Maria Berrittella & Katrin Rehdanz & Roberto Roson & Richard S.J. Tol, 2006. "The Economic Impact Of Water Pricing: A Computable General Equilibrium Analysis," Working Papers FNU-96, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2006.
    21. 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.
    22. Kojima, Kiyoshi, 1985. "Japanese and American Direct Investment in Asia : A Comparative Analysis," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 26(1), pages 1-35, June.
    23. Atkinson, Giles & Hamilton, Kirk & Ruta, Giovanni & Van Der Mensbrugghe, Dominique, 2010. "Trade in'virtual carbon': empirical results and implications for policy," Policy Research Working Paper Series 5194, The World Bank.
    24. Yih-Chyi Chuang & Chi-Mei Lin, 1999. "Foreign direct investment, R&D and spillover efficiency: Evidence from Taiwan's manufacturing firms," Journal of Development Studies, Taylor & Francis Journals, vol. 35(4), pages 117-137.
    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. Roberto Ponce & Francesco Bosello & Carlo Giupponi, 2012. "Integrating Water Resources into Computable General Equilibrium Models - A Survey," Working Papers 2012.57, Fondazione Eni Enrico Mattei.
    2. 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.
    3. Xia, Wenjun & Chen, Xiaohong & Song, Chao & Pérez-Carrera, Alejo, 2022. "Driving factors of virtual water in international grain trade: A study for belt and road countries," Agricultural Water Management, Elsevier, vol. 262(C).
    4. 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.
    5. Paolo Prosperi & Thomas Allen & Martine Padilla & Iuri Peri & Bruce Cogill, 2014. "Sustainability and Food & Nutrition Security," SAGE Open, , vol. 4(2), pages 21582440145, June.
    6. Paolo Prosperi & Thomas Allen & M. Padilla & Luri Peri & Bruce Cogill, 2014. "Sustainability and food & nutrition security: a vulnerability assessment framework for the Mediterranean region," Post-Print hal-01189996, HAL.
    7. R. R. Weerasooriya & L. P. K. Liyanage & R. H. K. Rathnappriya & W. B. M. A. C. Bandara & T. A. N. T. Perera & M. H. J. P. Gunarathna & G. Y. Jayasinghe, 2021. "Industrial water conservation by water footprint and sustainable development goals: a review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 12661-12709, September.
    8. Michael Gilmont, 2015. "Water resource decoupling in the MENA through food trade as a mechanism for circumventing national water scarcity," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(6), pages 1113-1131, December.
    9. Oliva, Roberto D. Ponce & Moscoso, Ramiro F. Parrado, 2012. "Economy-wide Impacts of Climate Change on Water Resources in Africa: A CGE Approach," Conference papers 332235, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Roberto Roson & Martina Sartori, 2012. "Climate Change, Tourism and Water Resources in the Mediterranean: A General Equilibrium Analysis," IEFE Working Papers 51, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    11. dos Santos Fachinelli Ferrarini, Angel & Bento de Souza Ferreira Filho, Joaquim & Vianna Cuadra, Santiago & De Castro Victoria, Daniel, 2017. "Water Demand Prospects for the Irrigation in São Francisco River," Conference papers 332886, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Andrea Fracasso & Martina Sartori & Stefano Schiavo, 2014. "Determinants of Virtual Water Flows in the Mediterranean," IEFE Working Papers 75, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    13. Sartori, Martina & Schiavo, Stefano, 2014. "Virtual water trade and country vulnerability: A network perspective," MPRA Paper 59210, University Library of Munich, Germany.
    14. 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.
    15. Roson, Roberto & Sartori, Martina, 2012. "Climate Change Impacts on Tourism in the Mediterranean," Conference papers 332219, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Jorge Bielsa & Ignacio Cazcarro, 2014. "Implementing Integrated Water Resources Management in the Ebro River Basin: From Theory to Facts," Sustainability, MDPI, vol. 7(1), pages 1-24, December.

    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. Roberto Roson & Martina Sartori, 2011. "Climate Change and Virtual Water Trade in the Mediterranean," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, September.
    2. van der Mensbrugghe, Dominique, 2019. "The Standard GTAP Model in GAMS, Version 7.1," GTAP Technical Papers 6825, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    3. van der Mensbrugghe, Dominique, 2019. "The Standard GTAP Model in GAMS, Version 7.1," GTAP Working Papers 6825, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    4. Chokri Thabet, 2014. "Water Policy and Poverty Reduction in Rural Area: A Comparative Economy Wide Analysis for Morocco and Tunisia," Working Papers 860, Economic Research Forum, revised Nov 2014.
    5. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    6. Dinar, Ariel, 2012. "Economy-wide implications of direct and indirect policy interventions in the water sector: lessons from recent work and future research needs," Policy Research Working Paper Series 6068, The World Bank.
    7. Laborde, David & Martin, Will & van der Mensbrugghe, Dominique, 2008. "Implications of the 2008 Doha Draft Agricultural and NAMA Market Access Modalities for Developing Countries," Conference papers 331719, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Balie, Jean & Strutt, Anna & Nelgen, Signe & Narayanan, 2018. "Infrastructure investments for improved market access in subSaharan Africa: A CGE analysis," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 13(2), June.
    9. Aguiar, Angel & Corong, Erwin & van der Mensbrugghe, Dominique, 2020. "The GTAP Recursive Dynamic (GTAP-RD) Model: Version 1.0," Conference papers 333133, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Erwin Corong & Thomas Hertel & Robert McDougall & Marinos Tsigas & Dominique van der Mensbrugghe, 2017. "The Standard GTAP Model, version 7," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 2(1), pages 1-119, June.
    11. Hertel, Thomas & Hummels, David & Ivanic, Maros & Keeney, Roman, 2007. "How confident can we be of CGE-based assessments of Free Trade Agreements?," Economic Modelling, Elsevier, vol. 24(4), pages 611-635, July.
    12. Calzadilla, Alvaro & Rehdanz, Katrin & Tol, Richard S.J., 2008. "Water scarcity and the impact of improved irrigation management: A CGE analysis," Conference papers 331788, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Horridge, Mark & Ferreira-Filho, Joaquim Bento de Souza, 2003. "Linking GTAP to National Models: Some Highlights and a Practical Approach," Conference papers 331115, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Peter Walkenhorst & Tadashi Yasui, 2004. "Quantitative Assessment of the Benefits of Trade Facilitation," International Trade 0401008, University Library of Munich, Germany.
    15. Soo Yuen Chong & Jung Hur, 2007. "Overlapping Free Trade Agreements of Singapore-USA-Japan : A Computational Analysis," Trade Working Papers 21931, East Asian Bureau of Economic Research.
    16. Gehlhar, Mark & Wainio, John, 2004. "Feasibility of Reducing Agricultural Protection: Implications for Farm Households," Conference papers 331293, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Maria Berrittella & Katrin Rehdanz & Richard S.J. Tol, 2006. "The Economic Impact of the South-North Water Transfer Project in China: A Computable General Equilibrium Analysis," Working Papers 2006.154, Fondazione Eni Enrico Mattei.
    18. De Miguel, Carlos J. & Durán Lima, José Elías & Schuschny, Andrés Ricardo, 2007. "Los acuerdos comerciales de Colombia, Ecuador y Perú con los Estados Unidos: efectos sobre el comercio, la producción y el bienestar," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    19. Wusheng Yu & Hans G. Jensen, 2010. "China’s Agricultural Policy Transition: Impacts of Recent Reforms and Future Scenarios," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 343-368, June.
    20. Curzel, Rosana & Silber, Simão Davi & Guilhoto, Joaquim José Martins, 2007. "Argentina, Brasil e Uruguai: um estudo dos impactos regionais da ALCA [Argentina, Brazil and Uruguay: a study of the regional impacts of ALCA]," MPRA Paper 54502, University Library of Munich, Germany.

    More about this item

    Keywords

    Global; with focus on the Mediterranean.; General equilibrium modeling (CGE); Agricultural issues;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    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:ekd:002625:2827. 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: Theresa Leary (email available below). General contact details of provider: https://edirc.repec.org/data/ecomoea.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.