IDEAS home Printed from https://ideas.repec.org/p/str/wpaper/1612.html
   My bibliography  Save this paper

Physical water use and water sector activity in environmental input-output analysis

Author

Listed:
  • Oluwafisayo Alabi

    () (Department of Economics, University of Strathclyde)

  • Max Mundy

    () (Welsh Economy Research Unit (WERU), Cardiff University)

  • Kim Swales

    () (Department of Economics, University of Strathclyde)

  • Karen Turner

    () (Department of Economics, University of Strathclyde)

Abstract

This paper uses input-output accounting methods to identify the direct, indirect and induced physical demand for water. Previously the seminal work by Leontief (1970) has been employed to motivate a fuller account of issues related to sectors that generate and sectors that clean/treat polluting outputs (Allan et al 2007). The present paper extends this approach to deal with sectors that use a natural resource and the sector(s) that supply it. We focus on the case of water use and supply and a case study for the Welsh regional economy. The analysis shows how the proposed method, using both the quantity input-output model and the associated price dual, can be used to consider economy wide implications of the deviation between actual expenditure on the output of the water sector and actual physical water use. The price paid per physical amount of water appears to vary greatly amongst different uses. This may occur for various reasons. We argue that such analysis and information is essential for policy makers and regulators in understanding the demands on and supply of UK regional water resources, their role in supporting economic expansion, and can ultimately inform water sustainability objectives and strategies.

Suggested Citation

  • Oluwafisayo Alabi & Max Mundy & Kim Swales & Karen Turner, 2016. "Physical water use and water sector activity in environmental input-output analysis," Working Papers 1612, University of Strathclyde Business School, Department of Economics.
  • Handle: RePEc:str:wpaper:1612
    as

    Download full text from publisher

    File URL: https://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/16.12.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    2. Grant J. Allan & Nicholas D. Hanley & Peter G. Mcgregor & J. Kim Swales & Karen R. Turner, 2007. "Augmenting the Input-Output Framework for 'Common Pool' Resources: Operationalising the Full Leontief Environmental Model," Economic Systems Research, Taylor & Francis Journals, vol. 19(1), pages 1-22.
    3. Okadera, Tomohiro & Geng, Yong & Fujita, Tsuyoshi & Dong, Huijuan & Liu, Zhu & Yoshida, Noboru & Kanazawa, Takaaki, 2015. "Evaluating the water footprint of the energy supply of Liaoning Province, China: A regional input–output analysis approach," Energy Policy, Elsevier, vol. 78(C), pages 148-157.
    4. Chapagain, A.K. & Hoekstra, A.Y. & Savenije, H.H.G. & Gautam, R., 2006. "The water footprint of cotton consumption: An assessment of the impact of worldwide consumption of cotton products on the water resources in the cotton producing countries," Ecological Economics, Elsevier, vol. 60(1), pages 186-203, November.
    5. Faye Duchin, 2004. "Input-Output Economics and Material Flows," Rensselaer Working Papers in Economics 0424, Rensselaer Polytechnic Institute, Department of Economics.
    6. Weisz, Helga & Duchin, Faye, 2006. "Physical and monetary input-output analysis: What makes the difference?," Ecological Economics, Elsevier, vol. 57(3), pages 534-541, May.
    7. Glenn-Marie Lange, 1998. "Applying an Integrated Natural Resource Accounts and Input-Output Model to Development Planning in Indonesia," Economic Systems Research, Taylor & Francis Journals, vol. 10(2), pages 113-134.
    8. Yu, Yang & Hubacek, Klaus & Feng, Kuishuang & Guan, Dabo, 2010. "Assessing regional and global water footprints for the UK," Ecological Economics, Elsevier, vol. 69(5), pages 1140-1147, March.
    9. 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.
    10. 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.
    11. Herman E. Daly, 1968. "On Economics as a Life Science," Journal of Political Economy, University of Chicago Press, vol. 76, pages 392-392.
    12. A. Hoekstra & A. Chapagain, 2007. "Water footprints of nations: Water use by people as a function of their consumption pattern," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 21(1), pages 35-48, January.
    13. 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)

    More about this item

    Keywords

    Water resources; Full Leontief environmental model; input-output; Multipliers; Wales;

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:str:wpaper:1612. 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: (Kirsty Hall). General contact details of provider: http://edirc.repec.org/data/edstruk.html .

    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 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.

    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.