Trade-offs in water policy: System-wide implications of changing water availability and agricultural productivity in the Mediterranean economies by 2050
We evaluate the structural consequences of water availability scenarios in the Mediterranean, following a multidisciplinary approach and a sequential modelling methodology. This includes an assessment of future water availability and a general equilibrium macroeconomic analysis of changes in agricultural productivity. Lower productivity in agriculture, induced by reduced water availability, generates negative consequences in terms of real income and welfare. The magnitude of the loss depends on the amount of the productivity shock, but also on the share of agricultural activities in the economy and on the stringency of the environmental regulation. We find evidence of a dramatic cut in the supply of water for agriculture in the Middle East. We consider alternative scenarios, differing in terms of stringency of environmental regulation and assumptions about water efficiency. The largest welfare losses turn out to be in Morocco and Tunisia, in the �worst� scenario NM. Other very relevant impacts can be observed in Turkey, Italy and Rest of Middle East and North Africa (XMENA). There are also clear differences among the scenarios. First, applying a constraint on access to environmental water reserves only for Europe does make a big difference for non-European countries (Morocco, Tunisia and XMENA), implying that governments in the Middle-East could respond to increasing water scarcity by accepting, to some extent, lower environmental quality (deterioration of aquatic environments). Second, improvements in water efficiency, as envisaged in the simulation exercise, appear to curb the economic impact of water scarcity quite significantly. This is especially true for countries in the North, whereas efficiency does not compensate for a strict environmental policy in the South.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: Cannaregio, S. Giobbe no 873 , 30121 Venezia|
Web page: http://www.unive.it/dip.economia
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.:
- Qadir, M. & Sharma, B.R. & Bruggeman, A. & Choukr-Allah, R. & Karajeh, F., 2007. "Non-conventional water resources and opportunities for water augmentation to achieve food security in water scarce countries," Agricultural Water Management, Elsevier, vol. 87(1), pages 2-22, January.
- Hanjra, Munir A. & Qureshi, M. Ejaz, 2010. "Global water crisis and future food security in an era of climate change," Food Policy, Elsevier, vol. 35(5), pages 365-377, October.
- Allouche, Jeremy, 2011. "The sustainability and resilience of global water and food systems: Political analysis of the interplay between security, resource scarcity, political systems and global trade," Food Policy, Elsevier, vol. 36(Supplemen), pages S3-S8, January.
- Roberto Roson & Dominique Van der Mensbrugghe, 2012. "Climate change and economic growth: impacts and interactions," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 4(3), pages 270-285.
- de Fraiture, Charlotte & Wichelns, Dennis, 2010. "Satisfying future water demands for agriculture," Agricultural Water Management, Elsevier, vol. 97(4), pages 502-511, April.
- Allouche, Jeremy, 2011. "The sustainability and resilience of global water and food systems: Political analysis of the interplay between security, resource scarcity, political systems and global trade," Food Policy, Elsevier, vol. 36(S1), pages S3-S8.
- N/A, 2002. "Documents," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 3(2), pages 336-337, September.
- Khan, Shahbaz & Hanjra, Munir A., 2009. "Footprints of water and energy inputs in food production - Global perspectives," Food Policy, Elsevier, vol. 34(2), pages 130-140, April.
- N/A, 2002. "Documents," South Asian Survey, Indian Council for South Asian Cooperation, vol. 9(2), pages 287-304, September.
- Wichelns, Dennis, 2001. "The role of `virtual water' in efforts to achieve food security and other national goals, with an example from Egypt," Agricultural Water Management, Elsevier, vol. 49(2), pages 131-151, July.
- 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.
- Reimer, Jeffrey J., 2012. "On the economics of virtual water trade," Ecological Economics, Elsevier, vol. 75(C), pages 135-139.
When requesting a correction, please mention this item's handle: RePEc:ven:wpaper:2013:21. 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: (Geraldine Ludbrook)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.