Water Endowments Research Articles

Targeted opportunities to mitigate water scarcity, inequality, and inequity embedded in international food trade for vulnerable countries

International food trade reshapes regional water scarcity through virtual water transfers (VWT), influencing water use equality and equity. This study examines eight populous yet impoverished countries in Africa and Asia, representing 30 % of the global poor population and contributing 20 % to agricultural VWT. Despite their significant role, these countries have been understudied due to a lack of data or attention. By integrating multiple datasets and models, we assess how international food trade impacts water scarcity, inequality, and inequity within these countries and identify the driving factors. Our findings reveal varied outcomes: Uganda and Ethiopia benefit from reduced water scarcity (∼40 % and ∼7 %) and improved equality and equity (∼90 % and ∼68 %), while India and Pakistan face exacerbated scarcity (∼4 % and ∼2 %) and widening inequality and inequity (∼4 % and ∼7 %). The effects are largely driven by critical trade flows of staple and cash crops like rice, sugar cane, and cotton among developing countries, propelled by comparative advantages in agricultural production, econo-geography, food demand, and water endowment between importers and exporters. Addressing these water challenges involves diversifying import channels to reduce reliance on detrimental trade flows, such as India's rice exports to Iran, while promoting beneficial flows, like Bangladesh's cotton imports from India, through trade agreements. Additionally, implementing pro-poor water policies (e.g., providing water subsidies) and water-saving techniques (e.g., adopting drip irrigation) is crucial, though caution is needed to avoid unintendedly marginalizing vulnerable groups through large-scale water projects.

Is industrial structure determined on water endowment in China? An empirical study of 31 provinces between 2011 and 2021

The interaction between water resources and industrial development remains inadequately comprehended in China. This study aims to explore the influence of water resources on industrial structure and its underlying mechanisms. The study establishes a theoretical mechanism framework based on the resource curse and blessing theory, examines the influence of water endowment on industrial structure, and investigates its influencing mechanism by using panel data from 31 provinces in China between 2011 and 2021. The study finds that, between 2011 and 2021, the national water-industry coordination gradually increased and remained uncoordinated. Water endowment and industrial structure exhibit a U-shaped relationship with spatial spillover effects. Water endowment reverses the industrial structure in water-scarce regions, while it promotes it in water-abundant regions. Both the curse and blessing of water resources are identified in China, and 30 provinces are “cursed”. The water-industry coordination plays a moderating role in the influence of water endowment on industrial structure, mitigating the effects of both the water resource curse and blessing. It expands the range of influence of the reverse effect and can shift the water resource curse to the water resource blessing. It is therefore proposed to employ water resources as an effective instrument to facilitate regional industrial upgrading, reinforce advanced agglomeration industry system, promote industrial structure adaptation to water resources, and strengthen the implementation of “Determining Industry on Water”. The paper illustrates the different water-industry interactions in water-scarce and water-abundant regions and the role of water-industry coordination in transforming the resource curse into the resource blessing.

A revised model for calculating virtual scarce water

Accounting for virtual scarce water facilitates and improves the analysis of virtual water, and facilitates comparisons between water use embodied in products from regions with different water resource conditions. However, previous virtual scarce water models were inadequate for the analysis of both water quantity and quality, and only provided a rough estimate. To address this problem, we proposed a modification of this model. In the revised model, we determined the scarcity induced by inadequate water quality by analyzing the availability of suitable quality water for specific sectors (residential, industrial, agricultural, and environmental) rather than focusing on a single sector (usually environmental). Additionally, the revised model evaluated scarcity from water quantity by considering clean water technologies and environmental flow demand. This comprehensive scarcity measure is then incorporated into an input–output model to determine virtual scarce water. We used two typical Chinese river basins (the Hai River and Pearl River basins) with different water endowments to evaluate the model. We found that in the water-scarcity region the virtual scarce water was more strongly affected by water quality and clean water technologies, whereas in the water-rich region it was more strongly affected by the environmental flow demand. These findings underscored the need for more targeted economic and environmental policies for different regions. Water-scarcity regions should prioritize the promotion of clean water technologies and contaminant mitigation techniques, while water-rich regions should pay more attention to ensuring the environmental flow demand.

Water rights trading and corporate productivity: Evidence from a quasi‐natural experiment of China's pilot policy

AbstractThe economic consequences of water efficiency that results from water policies remains controversial. Studies on how water rights trading (WRT), which allocates water resources in and across industries, influences corporate efficiency can reveal the behavioral response of market participants to increase water efficiency. Considering the WRT pilot implemented in 2014 as a quasi‐natural experiment, we adopt the difference‐in‐difference‐in‐differences method to evaluate its impact on corporate total factor productivity (TFP). Our findings show that WRT significantly stimulates the TFP of firms with high water costs. This effect is achieved by promoting water‐related green innovation and optimizing resource allocation instead of alleviating corporate risks. Furthermore, the impact of WRT is more pronounced in areas with lower levels of water endowment and market development. The research findings have strikingly important policy implications regarding water management in China through WRT.

The role of citizen participation in advancing sustainable water solutions: The Mexico City case study

Providing water equally and sustainably in megacities is a challenge that requires integrating people's needs and concerns. This defy is assessed from Mexico City, from which a series of observations and a methodology analyze and compare scenarios of water conditions in the 16 municipalities, integrating citizen participation to implement sustainable actions that improve water supply. Citizens' reports from 2002 to 2022 in a free digital platform were used to correlate the variables of leaks and water shortages. This was complemented with information from water endowment (Liters/day/inhabitant) from groundwater sources that supply the city. For the latter, projections (with the additive model) to 2022 were generated since records were available up to 2018. To identify priority areas to invest in measures that favor water supply in the municipalities, we further considered the adaptation measures applied by the city government, e.g., the purchase of portable water tanks and Rainwater Harvesting Systems (RWHS). Both measurements proved essential but need to be of more extensive application. Government and society must improve their use by promoting conscious consumption of water, impulse repairing leaks, further implementing Rainwater Harvesting Systems (RWHS), and integrating the resources (inputs/outputs) in a water circularity model, maximizing their utility and recirculation.

Does bilateral trade in cereals within SADC reflect virtual trade in water between countries with different water endowments?

ABSTRACT This paper examines intraregional bilateral trade in virtual water embedded in cereal flows between the Southern Africa Development Community (SADC) states. A gravity model is employed to examine whether annual bilateral trade depends on differences in water endowments, but also includes socio-economic and political determinants that affect trade. There is evidence that the abundance of water resources in a country influences trade for a product that is water dependent. Thus, the adverse effect of water scarcity in a country may be ameliorated by encouraging exports of water-intensive cereal crops where water is in abundance and imported where water is scarce.

Exploring the spatial structure and impact factors of water use efficiency in China

Improving water use efficiency is an essential strategy in the response to the global water crisis. The assessment of water use efficiency serves as the foundation for improving water use efficiency and water governance. Based on the mixed methods including Super-SBM model, GML index, spatial analysis, and Tobit model, this study assesses the water use efficiency from the scales of regional and provinces in China from 2011 to 2020, explores the evolution characteristics and spatial pattern of water use efficiency, and identifies the impact factors of water use efficiency. The results indicate that regional water use efficiency in China varies significantly by space, the highest in the eastern region with an average value of 0.8052, and the lowest in the central region with an average value of 0.5709. From 2011 to 2020, the average water use efficiency in China is 0.7042, which is in a low efficiency state, and roughly two thirds of the country's provinces use water inefficiently or ineffectively. In addition, regional differences of water use efficiency in China have a tendency of divergence and polarization. The technological progress change is the major factor for promoting water use efficiency. Economic development, water endowment, water use structure, scientific and technological development, and urban development have significant effects on water use efficiency in different regions respectively, while industrial structure and water governance have insignificant effects. This study supports researchers and practitioners in comprehending the characteristics and spatial patterns of water use in China, and also enriches the research system of water governance and integrated water resources management.

Assessment of sustainable agricultural development based on the water-energy-food nexus framework in the middle and upper reaches of the Yellow River, China.

Water, energy and food are inextricably linked in agricultural system. Social and environmental issues arising from socio-economic development pose new challenges for sustainable agricultural development. Achieving sustainable agriculture from the perspective of water, energy and food resource conservation is of critical importance to the national strategy for high-quality development of the Yellow River Basin in China. In this study, the mass productivity and economic productivity of water and energy in agricultural system were considered, and an integrated assessment index system for agricultural system based on the Water-Energy-Food Nexus (WEFN) was proposed in three dimensions: reliability, coordination and resilience. Based on these indicators, the agricultural water-energy-food nexus index (AWEFNI) and integrated risk index (IRI) were performed to assess the current status of agricultural development in the middle and upper reaches of the Yellow River. Results indicate that the AWEFNI in the middle and upper reaches of the Yellow River is increasing year by year, and the level of sustainable agricultural development is improving, but the overall level is lower. The AWEFNI values vary widely among provinces. The reliability of single subsystem in the study area accounts for more than 1/3 of the AWEFNI, with poor water endowment， rich food and energy resource endowments, the coordination of the AWEFN is weakening. The resilience of the third subsystem is gradually declining. The contradiction in water and energy supply and demand in Ningxia is the most prominent among the five provinces, and the level of AWEFN development is the lowest, so the regulation policies should be implemented as soon as possible to promote the synergistic development of AWEFN around the region.

Adopting sustainable irrigation technologies in Italy: a study on the determinants of inter- and intra-farm diffusion

ABSTRACT This paper analyses the drivers for adopting irrigation systems with water conservation and saving technologies (WCSTs) by Italian farmers. The agricultural sector in Italy, like in other Mediterranean countries, suffers from water scarcity and water endowment variability. Water resources play a decisive role in agricultural production and in implementing large-scale WCSTs capable of improving the resilience of the whole agricultural sector. This study uses a microeconomic panel data approach to estimate farmers’ decisions in adopting (inter-farm) sustainable irrigation technologies and assesses the intensity of (intra-farm) water-saving practices. Our analysis identifies the main determinants of adopting WCSTs for Italian farmers based on different socio-economic, physical, environmental and climatic variables.

Assessing Virtual Water Trade Balance of Agricultural Products (A Case Study of Mazandaran province)

According to World Bank Report (2021), the agricultural sector consumes 70 percent of global freshwater. Therefore, managing and exploiting water resources optimally as well as future planning in this sector is necessary. Limited access to water endowments, unequal distribution of water resources, climate changes and increasing global water demand have increased the importance of the issue. Aware of this situation, the main purpose of this study is to investigate the virtual water balance of selected agricultural products in Mazandaran Province with the Commonwealth of Independent States (CIS) in 2018. In this paper, by using CROPWAT and OPTIWAT software, first the water requirement of plants has been calculated and then, by processing the data of foreign trade of Mazandaran province with CIS, the trade balance of virtual water for selected agricultural products has been measured. The results of the present study show that the trade balance of virtual water in Mazandaran Province with the CIS in 2018 was 2816.76 million cubic meters, which indicates overall saved national water resources.The policy recommendation of this study is to pay special attention to virtual water and its combination in the upstream documents in order to conserve national water as well as social, economic and environmental sustainability.

Effects of multidimensional urbanisation on water footprint self-sufficiency of staple crops in China

Rapid urbanisation in developing countries has exerted ever-increasing pressure on food and water resource systems. Existing studies mostly focus on impacts of population urbanisation on agricultural water use, disregarding the multidimensional characteristics of urbanisation. Accounting for four dimensions of urbanisation: population, economy, spatial distribution, and society, we assessed the impact of multidimensional urbanisation on the water footprint self-sufficiency rate (WFSS) of three staple crops, that is, the ratio of the water footprint (WF) of crop production to the WF of crop-related consumption, through the case for China over 2000–2017. The socio-economic driving factors and spatial heterogeneity of crop WFSS were further tested. Results show that <30% of high-crop WFSS provinces supplied more than 70% of low-crop WFSS provinces. Social urbanisation and economic urbanisation were the governing positive and negative driving factors of the rice WFSS, respectively. Population urbanisation was the dominant factor attenuating wheat WFSS during the study period, while playing a reverse role in maize WFSS. Impacts of different dimensions of urbanisation on crop WFSS were heterogeneous and even contradictory depending on the crop type, the different processes of urbanisation, and the water endowment and economic level of the provinces. The quantile regression results further indicate that population urbanisation, spatial urbanisation and social urbanisation had greater impact on the higher WFSS (i.e., resulted in virtual water export) of rice and wheat. The current analysis challenges the conventionally monotonous urbanisation-water relationships, and suggests that additional dimensions of urbanisation should be considered when assessing the effects of urbanisation on agricultural water use.

Structural Characteristics and Evolutionary Drivers of Global Virtual Water Trade Networks: A Stochastic Actor-Oriented Model for 2000-2015.

The globalization of trade has caused tremendous pressure on water resources globally, and a virtual water trade provides a new perspective on global freshwater sharing and water sustainability. No study has yet explored the structural characteristics and drivers of the evolution of global virtual water trade networks from a network structure evolution perspective. This paper aims to fill this critical gap by developing a research framework to explore how endogenous network structures and external factors have influenced the evolution of virtual water trade networks. We constructed virtual water trade networks for 62 countries worldwide from 2000 to 2015 and used an innovative combination of multi-regional input-output data and stochastic actor-oriented models for analytical purposes. Our results support the theoretical hypothesis of ecologically unequal exchange and trade drivers, arguing that virtual water flows from less developed countries to developed countries under global free trade and that unequal trade patterns lead to excessive consumption of virtual water in less developed countries. The results partially support the theoretical content of water endowment and traditional gravity models, finding that trade networks are expanding to farther and larger markets, confirming that national water scarcity levels do not impact the evolution of virtual water trade networks. Finally, we point out that meritocratic links, path dependence, reciprocity, and transmissive links have extreme explanatory power for the evolutionary development of virtual water networks.

Spatial-temporal heterogeneity analysis of blue and green water resources for Poyang Lake basin, China

Poyang Lake basin has drought-prone pattern and floods in recent decades, posing a serious threat to water security and human life. In this research, the Soil and Water Assessment Tool (SWAT) was applied to investigate hydrological parameters characteristics, simulating uncertainties as well as spatial and temporal patterns of both blue and green water resources for the whole basin. The results revealed a strong correlation between the observed and simulated streamflow at six hydrological stations. The overall hydrological water balance analysis showed that 58.1 % of annual water yield is contributed by surface runoff, while groundwater flow contributes 38.8 % of annual water yield. The annual average blue water resource was higher accounting for 65.1 % of the total water resources. Green water coefficient was 34.9 % for the entire basin, varying from 26 % to 50 %. The spatial distribution of blue water resource was uneven in the basin with higher value in parts of the Ganjiang, Xinjiang and Raohe subbasins. While distribution of green water resource was more homogeneous. Blue water resource decreased significantly in Raohe subbasin with −37.1 mm/a whereas having no significant variability in other river basins from 1992 to 2010. The change of green water resource is caused mainly by the increase of green water flow in most subbasins. The results provide insights into prediction uncertainty reduction of simulation as well as green and blue water endowments. This research is of great significance to improve water resources management in Poyang Lake basin.

Does water rights trading affect corporate investment? The role of resource allocation and risk mitigation channels

This study investigates how the water rights trading (WRT) policy affects corporate investment in China. Recent literature mainly discusses the environmental implications of the WRT policy, while the economic consequences are still unclear. Hence, using a rich dataset of 22,321 Chinese firms from 2009 to 2019 and employing a difference-in-differences (DID) approach, we examine the impact of the WRT pilot on corporate investment. The findings show that WRT policy significantly stimulates corporate investment through two mechanisms: optimizing resource allocation and mitigating corporate risk. Furthermore, we provide evidence that the effect of the WRT policy is more prominent in national WRT pilots, areas with higher levels of water endowments and economic development, and non-state-owned firms. Overall, our conclusions provide evidence of the effectiveness of the WRT policy at the firm level. • China's water rights trading policy in 2014 can simulate corporate investment. • We use a sample of 22,321 Chinese firms within a difference-in-differences setting. • Optimizing resource allocation and mitigating corporate risk are the main channels. • Pilot level, water endowments, economic development, and ownership are moderators. • It proves the effectiveness of the water rights trading policy at the firm level.

Balancing water scarcity, food production, and trade imperatives in the Caribbean: Could virtual water analysis help?

The food system of the Caribbean Community (CARICOM) transitioned from plantation-based agriculture to one based on small-scale production and high food imports. Through the ‘25 in 5 Plan’, the CARICOM hopes to reduce its US$ 5 billion annual food import bill by 25% in the next five years, mainly by import substitution. Virtual water analysis has the potential to reveal water consumption and fluxes in food production and trade in the CARICOM to highlight hydro-concerns for the anticipated food import substitution. This study, therefore, analysed the virtual water flows associated with maize production and trade in the Caribbean to explore the implications of import substitution for sustainable water use and food security. Maize production and trade matrix data for the period 2010–2019 were obtained from FAO databases, and virtual water content was obtained from the Water Footprint Network database. Virtual water flow was estimated as the product of the virtual water content of maize and quantity traded between any two trading partners. Net virtual water flows were estimated as the difference between virtual water of imported commodities and that of exported commodities for each Caribbean country and its trading partners. Additionally, the equivalent water demand for full import substitution was estimated. The results showed that maize import to the Caribbean was about twice the regional production and both intra- and extra-Caribbean trade were highly concentrated in few countries. The equivalent volume of water required to support full import substitution, at current yields and consumption, was larger than the total internal renewable water resources for some countries. It is concluded that, while there is room for import substitution and diversification to reduce both cost and risk, water scarcity considerations are necessary and can limit the scale of import substitution for key commodities such as maize. A regional approach that takes advantage of national differences in water endowments and production potential, while enhancing intra-regional trade and diversifying extra-regional sources of supply, should be given urgent attention.

Managing Agricultural Water Use in a Changing Climate in China

The United Nations predicts that over 40 % of the world's population (3.9 billion) would suffer from severe water deficiency by 2050, indicating that global water disequilibrium and deficiency will intensify, creating challenges for national and regional water supplies. With per capita water resources at a quarter of the world average level, China is one of the most water-scarce countries. Employing a single stage Stochastic Frontier Analysis, this paper studies the impact of climate change induced fluctuation in temperature and precipitation on agricultural water (AW) use efficiency in China and addresses its volatility and regional disparity over time and across region. We utilize fine-scale meteorological factors including temperature, precipitation, crop growing degree days and crop harmful degree days to proxy the changing climate condition. Our results reveal temperature-related climate change factors such as average annual temperature, crop growing degree days and crop harmful degree days demonstrate the negative impacts on AW use efficiency, and the decline in precipitation due to climate change lowers AW use efficiency. More importantly, we find that when the information on climate damage is provided to farmers, the negative effect of climate change on AW use efficiency can be alleviated. Furthermore, we conclude that the North China Plain, Southwest and Northeast regions with shortages of water endowment have the best AW use efficiency, followed by the Yangtze River Basin and the Northwest region. The South Coast region with ample water sources has the poorest performance. We therefore conclude that AW use efficiency in China is affected by climate change, with heterogeneous impacts across regions. Policy implications on risk management are drawn to enable better adaptation to climate change in agricultural water use.

The unintended effects of inter-basin water transfer policies on corporate research and development activities

Abstract Inter-basin water transfer (IBWT) policies alter the spatial distribution of water endowments and trigger changes in environmental regulation policies, which may unintentionally impact the research and development (R&amp;D) activities in IBWT water-receiving areas. However, the existing studies failed to examine the relationship between IBWT policies and corporate R&amp;D activities, and lacked the exploration of the micro-mechanism of IBWT's unintended impact on corporate R&amp;D activities. Through the water delivery of China's South-North Water Transfer Project as a quasi-natural experiment, this study adopts a difference-in-differences approach to scrutinise the unintended impact of IBWT policies on corporate R&amp;D activities. The findings show that IBWT policies can make the water a ‘resource blessing’ by directly improving the water endowment in water-receiving areas, thereby promoting corporate R&amp;D activities. In addition, IBWT policies can also indirectly encourage local governments in water-receiving areas to strengthen the intensity of environmental regulations, ultimately promoting companies to improve R&amp;D activities. Finally, the impacts of IBWT policies on corporate R&amp;D activities in water-receiving areas are heterogeneous. Overall, this study contributes to understanding the complicated relationship between IBWT policies and corporate R&amp;D activities, and provides insights into how IBWT policies affect corporate R&amp;D activities.

Examining the Role of Clean Drinking Water Plants in Mitigating Drinking Water-Induced Morbidity

Access to clean drinking water is essentially required for human existence. It is a formalized fact that contaminated drinking water poses a serious threat to human life as the endowment of unpolluted drinking water to Pakistan’s inhabitants is the local government’s foremost duty. Thus, to conquer this purpose, the local government, with the coordination of the community development department (CD), fixed drinking water filtration plants at several places in Lahore. This study aimed to discover the health threats and health-associated costs endured by households in the target study areas and the effects of drinking water on infants’ and children’s health in areas having and lacking water filtration plants by employing the health lifestyle model. Moreover, this study compared waterborne disease incidence in households in targeted areas with and without local government filtration plants. For this purpose, a multistage random sampling technique was employed to collect the data from 300 households residing at different locations in Pakistan. This study revealed that people who make life choices to drink filtration plants’ water installed by the local government are less likely to contract waterborne diseases. Besides, class circumstances such as the size of the family, education of the family head, and plant water usage are highly correlated to the quality and use of drinking water and, ultimately, to the health-associated outcomes by improving a healthy lifestyle. In contrast, the age of the household head was found to be insignificant in making choices regarding drinking water choices and reducing waterborne illness. The more the education of the family head, the fewer family members found to indulge in practices for using plant water. Thus, infants/children and other people are less likely to contract waterborne incidents in areas equipped with these filtration plants. Moreover, the probability of contracting waterborne illness is higher in males than in females in areas lacking filtration plants.

Toward a better understanding of virtual water trade: Comparing the volumetric and impact-oriented virtual water transfers in China

The scarcity and spatial mismatch of water resources exert increasing pressure on global water sustainability. Interregional virtual water transfer through trade can alleviate or aggravate pressure on water resources because of the heterogeneity in regional water endowments. However, previous studies have mainly focused on volumetric virtual water transfers without considering actual impacts on local water resources. This study compares the volumetric and impact-oriented water footprints (WFs) in China in 2012 and 2015 using a multiregional input–output model (MRIO). Unlike the volumetric WF, which focuses on the volume of water used, the impact-oriented WF refers to the potential environmental impacts of water withdrawal in view of water availability. The results show a clear gap between the pattern of the volumetric virtual water flow and that of the impact-oriented virtual water flow. As a water-scarce region, North China imported 23824×106 m3 and 12338×106 m3 of volumetric virtual water from other regions in 2012 and 2015, respectively, but exported a large amount of impact-oriented virtual water to almost all other regions. Additionally, most water-rich regions transferred water scarcity risk as virtual water importers to water-scarce regions. For example, the largest net impact-oriented virtual water flows in 2012 (4421×106 m3 H2Oeq) and 2015 (4014×106 m3 H2Oeq) were from North China to East China. Our results highlight the importance of simultaneously considering both the volume and the impact of water use in virtual water trade analyses. Understanding these mechanisms is essential for helping to identify the actual receivers of water scarcity risk in virtual water trade network and develop sustainable virtual water strategies.

Drinking water tariff policy: vulnerability, regulation, and sustainability in the Colombian case

Until four years ago, regulations of the drinking water consumption in Colombia did not consider climate change variables and national and international water-urban guidelines in its rate policy. In this sense, it is proposed to determine the scenario of the basic water consumption through a normative revision implemented to guarantee the supply, considering the six socioeconomic strata and classifying three types of cities according to the water endowment and geographic location. It was found, that the Bogotá city shows an initial increase of 58% for stratum 1, which can be considered as high, compared with Medellín and Cali cities (53% and 43%). Hence, changes presented in resolution CRA/750/2016, according to a new consumption of household public services of the Aqueduct, have a large impact on the economy of families, especially for strata 1, 2, and 3.