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Water Reallocation in the Input-Output Model

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  • Llop Llop, Maria

Abstract

Water reallocation between economic agents has been –and continues to be- the subject of a considerable amount of research. This paper proposes a method for evaluating how water is reallocated within the economy in response to changes in final demand and changes in the technical water needs of activities and consumers. The empirical application, which is for the Catalan economy, shows important asymmetries in the effects that exogenous inflows and changes in water technical requirements cause on water reallocation. In the process of water distribution, exogenous inflows mostly benefit agriculture and damage private consumers. On the other hand, increases in technical water requirements have negative effects on agriculture and positive effects on the other production activities. The results of the study suggest that agriculture is an important activity not only in terms of water distribution but also in terms of water reallocation due to changes in final demand and technical water needs. Keywords: Water reallocation, water distribution, exogenous shock, technical water needs.

Suggested Citation

  • Llop Llop, Maria, 2011. "Water Reallocation in the Input-Output Model," Working Papers 2072/151815, Universitat Rovira i Virgili, Department of Economics.
  • Handle: RePEc:urv:wpaper:2072/151815
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    Cited by:

    1. Guangyao Deng & Liujuan Wang & Yanan Song, 2015. "Effect of Variation of Water-Use Efficiency on Structure of Virtual Water Trade - Analysis Based on Input–Output Model," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(8), pages 2947-2965, June.
    2. Llop, Maria & Ponce-Alifonso, Xavier, 2015. "Identifying the role of final consumption in structural path analysis: An application to water uses," Ecological Economics, Elsevier, vol. 109(C), pages 203-210.
    3. James Yoo, 2015. "The Economic Impacts of the Change in Sectoral Water Use in Maricopa County, Arizona: Modified Input-Output Approach," Proceedings of International Academic Conferences 2804932, International Institute of Social and Economic Sciences.
    4. Zhang, Dongmei & Guo, Ping, 2016. "Integrated agriculture water management optimization model for water saving potential analysis," Agricultural Water Management, Elsevier, vol. 170(C), pages 5-19.
    5. 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.
    6. repec:spr:jecstr:v:6:y:2017:i:1:d:10.1186_s40008-017-0068-9 is not listed on IDEAS

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    Aigua -- Distribució; 33 - Economia;

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