The Paradox of the Virtual Water Trade Balance in the Mediterranean Region

Alexandros Gkatsikos,Konstadinos Mattas

doi:10.3390/su13052978

Abstract

Climate change, water shortages and desertification threaten the economic and environmental sustainability in the Mediterranean. Limited rainfall and higher temperatures put agricultural production, which relies on water availability, in jeopardy. Thereupon, Mediterranean countries pursue agri-food resilience and water preservation through efficient water policies. Hence, water-deprived areas ought to import rather than produce water-intensive products to maintain water inventories and sustainability consequently. As this study examines the water sustainability for a Mediterranean water-scarce region with a particular focus on agriculture, the virtual water trade balance explores this hypothesis. A regional input–output model is constructed, and then total water consumption and the virtual water flows for each economic sector are estimated to determine the virtual water trade balance of the economy. Results indicate that the study area has a trade deficit and struggles economically but is a net importer of virtual water and secures water sustainability. As this virtual water deficit relies heavily on agriculture and originates in vast total water consumption rather than a large trade deficit, a paradox occurs; water-intensive cultivations and animals that consume 91.75% of water resources end up appearing to be water-saving. Further research is needed to strike a balance between economic growth and environmental protection.

Highlights

As water is a vital input for food production, efficient water governance is critical for countries that seek to build resilience against climate change, desertification and rising antagonism for food [1]
A regional input–output model is constructed, and total water consumption and the virtual water flows for each economic sector are estimated to determine the virtual water trade balance of the economy
A positive virtual water trade balance will overturn the initial hypothesis and the economy of Thessaly will fall into the water Leontief paradox

Summary

Introduction

As water is a vital input for food production, efficient water governance is critical for countries that seek to build resilience against climate change, desertification and rising antagonism for food [1]. Since food production depends on water availability, food security is vulnerable to water shortages, pollution and [2]. Environmental sustainability of water is underestimated as excessive irrigation and groundwater depletion and nitrate pollution due to agricultural activities to support food production imperil long-term viability of water inventories [3]. Recognizing the importance of water in the production process, especially for the agri-food sector, Allan (1993) developed the virtual water content or embedded water concept which is the amount of water used to produce a product, whether agricultural, industrial, or service [4].

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Results

Discussion

Conclusion