Abstract

We quantify the heavily oil-dominated WEF nexus in three Gulf Cooperation Council (GCC) countries (Kuwait, Qatar and Saudi Arabia) across spatial scales and over time, using available empirical data at the national level, and explore the exposure to nexus stresses (groundwater depletion) in other countries through virtual water trade. At the domestic scale, WEF trade-offs are fairly limited; while all sectors require considerable amounts of energy, the requirements for water and food production are modest compared to other uses. At the international scale, revenues from oil exports in the GCC allow the region to compensate for low food production and scarce water availability. This dependency is dynamic over time, increasing when oil prices are low and food prices are high. We show how reducing domestic trade-offs can lead to higher exposure internationally, with rice imports originating in regions where groundwater is being depleted. However, Saudi Arabia’s increased wheat imports, after reversing its food self-sufficiency policy, have had limited effects on groundwater depletion elsewhere. Climate change mitigation links the WEF nexus to the global scale. While there is great uncertainty about future international climate policy, our analysis illustrates how implementation of measures to account for the social costs of carbon would reduce the oil and gas revenues available to import food and desalinate water in the GCC.

Highlights

  • Despite the economic prosperity that the six states of the Gulf Cooperation Council (GCC1) enjoy [1], economic challenges as a result of recent fluctuations in oil prices [2, 3] have exposed strategic risks, including securing long-term sustainable access to and use of water and food resources [4]

  • The aim of this paper is to characterise in a quantitative fashion the multiple scales of the WEF nexus for the GCC, using three characteristic GCC states as examples; Kuwait, Qatar and Saudi Arabia, covering the largest and most populous GCC state (Saudi Arabia) with a considerable agriculture sector, a city state depending on oil exports (Kuwait) and a city state with a more diverse economy but still high dependence on gas exports (Qatar)

  • WEF trade-offs are generally modest, dominated by energy and while there are issues of water scarcity, trade-offs between sectors at this level are relatively small because water scarcity limits agricultural production and surplus fossil fuel resources compensate through desalination and food trade

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Summary

Introduction

Despite the economic prosperity that the six states of the Gulf Cooperation Council (GCC1) enjoy [1], economic challenges as a result of recent fluctuations in oil prices [2, 3] have exposed strategic risks, including securing long-term sustainable access to and use of water and food resources [4]. None of the GCC states have renewable water resources greater than 500 m3/capita [1], far below the widely used ‘water scarce’ threshold of 1000 m3/capita-year [10]. To meet their freshwater needs, GCC states have developed into world leaders in the application of seawater desalination technology with an installed desalination capacity in 2012 of 18 million m3 of water per day [planned to expand 40% by 2020 [11]]. Climate and Development Knowledge Network (London) (Accessed: 10 July 2015) (available at: http://cdkn org/2012/04/getting-to-gripswiththe-water-energy-food-nexus).

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