 Water Scarcity and Virtual Water Trade in the MediterraneanRoberto Roson and Martina Sartori No 2010_08, Working Papers from Department of Economics, University of Venice "Ca' Foscari" Abstract: Virtual water trade refers to the implicit content of water in the production of goods and services. When trade is undertaken, there is an implicit exchange of water. Furthermore, when water gets scarce, water intensive goods become more expensive to produce and the economy compensates through higher water imports.This paper is about applying the concept of virtual water to the problem of future water scarcity in the Mediterranean area, also induced by the climate change. The aim is assessing to what extent water trade is a viable adaptation option to the problem of water scarcity. To this end, a computable general equilibrium model is extended with satellite data on sectoral water consumption, and used to assess future scenarios of water availability.It is found that virtual trade may curb the negative effect of water scarcity, yet the consequences in terms of income and welfare remain quite significant, especially for some regions. Keywords: Computable General Equilibrium Models; Water; Virtual Water; Water Scarcity; Climate Change (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ven:wpaper:2010_08 Access Statistics for this paper More papers in Working Papers from Department of Economics, University of Venice "Ca' Foscari" Contact information at EDIRC. |
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