The Experts below are selected from a list of 21399 Experts worldwide ranked by ideXlab platform
Dennis Wichelns - One of the best experts on this subject based on the ideXlab platform.
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Virtual Water and Water footprints do not provide helpful insight regarding international trade or Water scarcity
Ecological Indicators, 2015Co-Authors: Dennis WichelnsAbstract:Many authors have estimated the Virtual Water content of good and services traded internationally, and many have calculated national Water footprints that account for the volumes of Virtual Water imported and exported. Some authors have suggested that international trade of Virtual Water has been harmful to selected exporting countries with limited Water endowments. Some suggest also that current patterns of international trade should be rearranged to make better use of global Water resources. Yet, countries do not actually trade in Virtual Water. They trade in goods and services for which Water is one of many inputs. Wise choices regarding Water resources and smart strategies regarding international trade cannot be determined by focusing on Water alone. The notions of Virtual Water and Water footprints are not helpful indicators of optimal strategies regarding Water resources, particularly when considering issues such as Water scarcity or international trade. I describe four perspectives regarding Virtual Water and Water footprints, with the goal of demonstrating the inadequacies of these notions in policy discussions and in efforts to determine the optimal allocation and use of Water resources. The four perspectives are: (1) international trade should not be modified or regulated to reflect the Virtual Water content of traded commodities or Water footprints in the countries of trading partners, (2) countries do not save Water by engaging in Virtual Water trade, (3) consumers in one country cannot alleviate Water scarcity or improve Water quality in other countries, and (4) Water footprints are not analogous to carbon or ecological footprints.
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Virtual Water a helpful perspective but not a sufficient policy criterion
Water Resources Management, 2010Co-Authors: Dennis WichelnsAbstract:The topic of Virtual Water has received substantial attention in recent years, both in scholarly literature and the popular press. Many authors have described the “flow of Virtual Water” between countries that engage in the trade of agricultural crops and livestock products. Some have suggested that Water-short countries should import Water-intensive agricultural products from Water-abundant countries, while using their limited domestic Water resources for higher valued activities. While compelling at first, such a policy prescription can be misleading. Virtual Water is a helpful phrase for describing the Water required to produce agricultural products and other goods. Discussions of Virtual Water have been effective in encouraging public officials and citizens to focus on Water scarcity issues. Yet the phrase is not based on an underlying conceptual framework. Hence, the Virtual Water perspective cannot be used alone as a criterion for selecting optimal policies. Trading strategies based on the Virtual Water perspective are not consistent with the economic concept of comparative advantage. In a similar fashion, distinguishing between the “blue Water” and “green Water” components of Virtual Water is helpful in a descriptive sense, but these phrases are not based on an underlying conceptual framework that can serve as a policy criterion for selecting among alternative policy options.
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the policy relevance of Virtual Water can be enhanced by considering comparative advantages
Agricultural Water Management, 2004Co-Authors: Dennis WichelnsAbstract:The Virtual Water metaphor was created originally to gain the attention of public officials responsible for choosing policies that influence the use of Water resources in arid regions. Over time, the metaphor has been used in both empirical and conceptual settings, primarily to describe the Water used to produce crop and livestock products that are traded in international markets. Several authors have described how Water-short countries can enhance their food security by importing Water-intensive food crops. Some authors have noted similarities between the Virtual Water metaphor and the economic theory of comparative advantage. The Virtual Water metaphor addresses resource endowments, but it does not address production technologies or opportunity costs. Hence, the metaphor is not analogous to the concept of comparative advantage. The metaphor can be helpful in motivating public officials to consider policies that will encourage improvements in the use of scarce resources, but comparative advantages must be evaluated to determine optimal production and trading strategies. The theory of comparative advantage is explained and demonstrated in several scenarios that depict differences in resource endowments and production technologies. Optimal strategies are not always consistent with expectations based only on resource endowments. Policy discussions regarding Water resources can be enhanced by considering comparative advantages when evaluating opportunities to import or export agricultural products.
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the role of Virtual Water in efforts to achieve food security and other national goals with an example from egypt
Agricultural Water Management, 2001Co-Authors: Dennis WichelnsAbstract:Abstract The term ‘Virtual Water’ has been used previously to describe the volume of Water embodied in food crops that are traded internationally. This paper describes the economic dimension of the ‘Virtual Water’ concept as an application of comparative advantage, with particular emphasis on Water as the key factor of production. The paper also extends the discussion of ‘Virtual Water’ by describing a nation’s goals regarding food security within a broader framework that includes other objectives such as providing national security, promoting economic growth, and improving the quality of life for citizens. The analysis suggests that land, labor, and capital must also be considered when evaluating a nation’s production and trade opportunities. In countries where one or more of those resources is limiting, focus on ‘Virtual Water’ alone will not be sufficient to determine optimal policies for maximizing the social net benefits from limited Water resources. In countries where labor is relatively abundant, public policies that promote labor-intensive crop production and processing activities may be desirable. The role of ‘Virtual Water’ within a broader policy framework is demonstrated using crop production and international trade data from Egypt, where substantial amounts of ‘Virtual Water’ and ‘Virtual land’ are embodied in wheat and maize imports. Policies that promote increased exports of labor-intensive crops will improve rural incomes and enhance food security.
Yu Liu - One of the best experts on this subject based on the ideXlab platform.
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exploring solutions to alleviate the regional Water stress from Virtual Water flows in china
Science of The Total Environment, 2021Co-Authors: Feng Wang, Yu Liu, Beiming Cai, Wei ZhangAbstract:China has long faced an uneven distribution of physical Water resources, which has been further exacerbated by the Virtual Water transfers embodied in the interregional trade. To alleviate such unfavorable influences of interregional Virtual Water flows on regional Water scarcity, this paper first combined a multi-regional input-output model and a structural decomposition analysis to identify the major driving forces behind the changes in interregional Virtual Water flows from 2002 to 2012, and then conducted a scenario analysis to explore solutions for sustainable Water resource management in China. Results indicated that the Virtual Water outflows from Water-deficient developing regions (Northwest and Northeast) to Water-abundant developed regions, such as East Coast and South Coast, have been increasingly intensified from 2002 to 2012. During the period, the final demand predominated the increase of Virtual Water transfers, while the improvement of Water use efficiency dominated the decline in Virtual Water flows from 2002 to 2012. Results from the designed scenarios indicated that the negative impacts of interregional Virtual Water flows on the Water stress can be effectively relieved, indicating the high priority of regional Water use efficiency improvement, especially in Water-starved regions.
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Virtual Water scarcity risk in China
Resources Conservation and Recycling, 2020Co-Authors: Haoran Zhao, Yu Liu, Sen Guo, Huiru Zhao, Anthony C.f. Chiu, Sai Liang, Jian-ping ZouAbstract:Abstract China's rapid economic growth has exerted great pressures on Water resources. Since local Water scarcity risk (LWSR, representing potential production losses in Water-dependent sectors due to Water scarcity) can be transmitted to downstream sectors via the economic trade system, this study measures the influences of LWSR on inter-provincial trade system using China's multi-regional input–output (MRIO) data including 31 provinces with 42 sectors in 2012. Top province-sectors in Virtual Water scarcity risk exports (VWSR exports, indicating the LWSR of one province being transmitted to other provinces via exports) and Virtual Water scarcity risk imports (VWSR imports, implying the vulnerability of the provinces to Water scarcity risk in other provinces via imports) are identified. Top VWSR exporters, such as Chemical Industry in Shanghai and Anhui, Agriculture in Hebei and Heilongjiang, and Textile in Jiangsu, are important to the resilience of the national economic system to Water scarcity due to the high levels of Water stress in these provinces. Top VWSR importers, such as Chemical Industry in Zhejiang, Jiangsu, and Shandong, Communication Equipment, Computers, and Other Electronic Devices in Jiangsu and Guangdong, and Food processing and tobaccos in Shandong, are particularly vulnerable to Water scarcity in other provinces. The results show that it is necessary for provinces to cooperatively manage Water resources in upstream sectors and provide references for decision-makers in highly vulnerable province-sectors to formulate strategies to mitigate Virtual Water scarcity risks.
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regional Water footprints and interregional Virtual Water transfers in china
Journal of Cleaner Production, 2019Co-Authors: Shidong Zhang, Yu Liu, Morteza Taiebat, Sai LiangAbstract:Abstract China faces increasingly severe Water stress from its limited, unevenly distributed Water resources and rapid economic growth. Interregional trade of goods and services within China further leads to a redistribution of Water resources through Virtual Water transfers. Such Virtual transfers are subject to constant changes due to the temporal variabilities in driving factors such as production efficiency, consumption patterns and population. Here we use the most recent public data to measure the Water footprints of 31 provincial-level regions in China and Virtual Water transfers among these regions in 2012. We find that Virtual Water transfer plays a significant role in regional Water footprints and greatly changes the allocation of Water resources towards regional consumptions. Already Water-scarce north China regions benefit from Virtual Water transfer by outsourcing Water-intensive products from other regions. However, the Water-scarce Northwest China suffers from Virtual Water transfer by exporting Water-intensive products. We suggest policy makers pay attention to demand-side measures to incentivize parties to improve Water efficiency in their production and reduce the consumption of Water-intensive goods. Policymaking should consider economic policy and Water conservation policy together to alleviate regional Water stress through Virtual Water transfers.
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drivers of Virtual Water flows on regional Water scarcity in china
Journal of Cleaner Production, 2019Co-Authors: Beiming Cai, Klaus Hubacek, Wei Zhang, Kuishuang Feng, Yawen Liu, Yu LiuAbstract:Previous studies had shown that the Virtual Water flows had intensified local Water scarcity of China. There is an urgent need to identify the drivers of Virtual Water flows and provide the potential options to reduce the impact of Virtual Water flows on regional Water scarcity. Based on the multi-regional input-output model and structural decomposition analysis, we evaluated the redistribution of Water withdrawal within China in 2002, 2007 and 2012, and then revealed the hidden driving forces of the changes in Virtual Water flows. For a specific province, the drivers had been divided into local and the rest of China. Here we found that: (1) The share of Virtual Water flows in interregional trade to total Water withdrawal had increased (from 20.1% to 40.5%) during the study period. (2) The direction of Virtual Water flows has reversed between some Chinese regions. Northwest and Northeast regions have become the major Virtual Water exporters. (3) The Virtual Water flows hidden in traded products of agriculture, electricity and the chemical industry accounted for more than 83% of total Virtual Water flows. (4) Local efficiency gains and consumption pattern changes in other provinces were the main drivers for changes in Virtual Water flows. The Water-scarce Northwest and Northeast of China had further increased Virtual Water export to the Water-rich provinces in southern China. This trend could be curbed by improving Water use efficiency and restraining Water-intensive consumption. Our results could pinpoint areas to invest in Water use efficiency and provide guidance for areas to restrain Water-intensive consumption.
M. Konar - One of the best experts on this subject based on the ideXlab platform.
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Virtual Water Scarcity Risk to the Global Trade System
Environmental science & technology, 2017Co-Authors: Sai Liang, M. Konar, Zeqi Zhu, Anthony S.f. Chiu, Xiaoping JiaAbstract:Local Water scarcity risk (LWSR, meaning potential economic output losses in Water-using sectors due to physical Water scarcity) can be transmitted to downstream economies through the globalized supply chains. To understand the vulnerability of the global economy to Water scarcity, we examine the impacts of local Water scarcity risk on the global trade system from 1995 to 2009. We observe increasingly intensified geographical separation between physical Water scarcity and production losses due to Water scarcity. We identify top nation-sectors in Virtual Water scarcity risk (VWSR) exports (indicating local Water scarcity risk in each nation transmitted to foreign nations through its exports), including agriculture and utilities in major economies such as China, India, Spain, France, and Turkey. These nation-sectors are critical to the resilience of the global economy to Water scarcity. We also identify top nation-sectors in Virtual Water scarcity risk imports (indicating each nation’s vulnerability to fore...
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agricultural Virtual Water flows within the united states
Water Resources Research, 2015Co-Authors: Qian Dang, Xiaowen Lin, M. KonarAbstract:Trade plays an increasingly important role in the global food system, which is projected to be strained by population growth, economic development, and climate change. For this reason, there has been a surge of interest in the Water resources embodied in international trade, referred to as “global Virtual Water trade.” In this paper, we present a comprehensive assessment of Virtual Water flows within the United States (U.S.), a country with global importance as a major agricultural producer and trade power. This is the first study of domestic Virtual Water flows based upon intranational food transfer empirical data and it provides insight into how the properties of Virtual Water transfers vary across scales. We find that the volume of Virtual Water flows within the U.S. is equivalent to 51% of international flows, which is slightly higher than the U.S. food value and mass shares, due to the fact that Water-intensive meat commodities comprise a much larger fraction of food transfers within the U.S.. The U.S. Virtual Water flow network is more social, homogeneous, and equitable than the global Virtual Water trade network, although it is still not perfectly equitable. Importantly, a core group of U.S. States is central to the network structure, indicating that both domestic and international trade may be vulnerable to disruptive climate or economic shocks in these U.S. States.
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Virtual Water trade flows and savings under climate change
Hydrology and Earth System Sciences, 2013Co-Authors: M. Konar, Z. Hussein, N. Hanasaki, D. L. Mauzerall, I. Rodriguez-iturbeAbstract:Abstract. The international trade of food commodities links Water and food systems, with important implications for both Water and food security. The embodied Water resources associated with food trade are referred to as "Virtual Water trade". We present the first study of the impact of climate change on global Virtual Water trade flows and associated savings for the year 2030. In order to project Virtual Water trade and savings under climate change, it is essential to obtain projections of both bilateral crop trade and the Virtual Water content of crops in each country of production. We use the Global Trade Analysis Project model to estimate bilateral crop trade under changes in agricultural productivity for rice, soy, and wheat. We use the H08 global hydrologic model to determine the impact of climatic changes to crop evapotranspiration for rice, soy, and wheat in each country of production. Then, we combine projections of bilateral crop trade with estimates of Virtual Water content to obtain Virtual Water trade flows under climate change. We find that the total volume of Virtual Water trade is likely to go down under climate change, due to decreased crop trade from higher crop prices under scenarios of declining crop yields and due to decreased Virtual Water content under high agricultural productivity scenarios. However, the staple food trade is projected to save more Water across most climate change scenarios, largely because the wheat trade re-organizes into a structure where large volumes of wheat are traded from relatively Water-efficient exporters to less efficient importers.
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Virtual Water trade and development in Africa
2013Co-Authors: M. Konar, K. CaylorAbstract:Abstract. A debate has long existed on the relationships between human population, natural resources, and development. Recent research has expanded this debate to include the impacts of trade; specifically, Virtual Water trade, or the Water footprint of traded commodities. We conduct an empirical analysis of the relationships between Virtual Water trade, population, and development in Africa. We find that increases in Virtual Water imports do not lead to increases in population growth nor do they diminish human welfare. We establish a new index of Virtual Water trade openness and show that levels of undernourishment tend to fall with increased values of Virtual Water trade openness. Countries with small dam storage capacity obtain a higher fraction of their agricultural Water requirements from external sources, which may indicate implicit "infrastructure sharing" across nations. Globally, increased crop exports tends to correlate with increased crop Water use efficiency, though this relationship does not hold for Africa. However, internal African trade is much more efficient in terms of embodied Water resources than any other region in the world. Thus, internal African trade patterns may be compensating for poor internal production systems.
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modeling past and future structure of the global Virtual Water trade network
Geophysical Research Letters, 2012Co-Authors: Carole Dalin, M. Konar, Naota Hanasaki, Samir Suweis, Ignacio RodrigueziturbeAbstract:Climate change and socio-economic development place an increasing pressure on essential natural resources, such as arable land and freshWater. The international food trade can save Water globally by redistributing commodities produced relatively more Water-efficiently. We focus on the global Virtual Water trade network associated with international staple food trade from 1986–2008. This study aims to determine which variables control the network's structure and temporal evolution, and to estimate changes in the network under future scenarios. Our fitness model reproduces both the topological and weighted characteristics of the network for the whole period. Undirected and directed network properties are well reproduced in each year, assuming as sole controls each nation's GDP, mean annual rainfall, agricultural area and population. The future structure of the network is estimated using climate and socio-economic projections, showing that volumes of Virtual Water traded will become increasingly heterogeneous and the importance of dominant importing nations will further strengthen.
Naota Hanasaki - One of the best experts on this subject based on the ideXlab platform.
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economic aspects of Virtual Water trade
Environmental Research Letters, 2017Co-Authors: Taikan Oki, Shinjiro Yano, Naota HanasakiAbstract:Although Water is rarely traded over long distances by itself, the total weight of the Water consumed to produce traded commodities exceeds the weight of any other commodity traded in the world. This concept is known as Virtual Water trade. Although space-/time-/commodity-based quantification has been conducted extensively, the underlying causes of this peculiar feature have thus far received little exploration. Here, we use estimates of Water consumption from a global hydrological model and statistical data related to food trade to elucidate three facts that explain the fundamental nature of Virtual Water trade with respect to alleviating Water scarcity. First, we quantitatively illustrate the unique position of Water among commodities based on its unit price and quantity of sales. Water has an extremely low unit price, and a tremendous volume of Water is consumed per person each day. Second, we show that rich but Water-scarce countries tend to reduce local Water consumption by importing Virtual Water. Third, we demonstrate that nations characterized by net Virtual Water exports have higher Water resources and income per capita and that no countries fall below a certain threshold with respect to both GDP and Water resources. These points suggest that the Virtual Water trade is explained by economic characteristics of Water and that sustainable development depends on promoting the co-development of poverty alleviation and Water resource development.
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modeling past and future structure of the global Virtual Water trade network
Geophysical Research Letters, 2012Co-Authors: Carole Dalin, M. Konar, Naota Hanasaki, Samir Suweis, Ignacio RodrigueziturbeAbstract:Climate change and socio-economic development place an increasing pressure on essential natural resources, such as arable land and freshWater. The international food trade can save Water globally by redistributing commodities produced relatively more Water-efficiently. We focus on the global Virtual Water trade network associated with international staple food trade from 1986–2008. This study aims to determine which variables control the network's structure and temporal evolution, and to estimate changes in the network under future scenarios. Our fitness model reproduces both the topological and weighted characteristics of the network for the whole period. Undirected and directed network properties are well reproduced in each year, assuming as sole controls each nation's GDP, mean annual rainfall, agricultural area and population. The future structure of the network is estimated using climate and socio-economic projections, showing that volumes of Virtual Water traded will become increasingly heterogeneous and the importance of dominant importing nations will further strengthen.
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temporal dynamics of blue and green Virtual Water trade networks
AGUFM, 2012Co-Authors: M. Konar, Naota Hanasaki, Carole Dalin, Andrea Rinaldo, Ignacio RodrigueziturbeAbstract:Global food security increasingly relies on the trade of food commodities. FreshWater resources are essential to agricultural production and are thus embodied in the trade of food commodities, referred to as “Virtual Water trade.” Agricultural production predominantly relies on rainWater (i.e., “green Water”), though irrigation (i.e., “blue Water”) does play an important role. These different sources of Water have distinctly different opportunity costs, which may be reflected in the way these resources are traded. Thus, the temporal dynamics of the Virtual Water trade networks from these distinct Water sources require characterization. We find that 42 × 109 m3 blue and 310 × 109 m3 green Water was traded in 1986, growing to 78 × 109 m3 blue and 594 × 109 m3 green Water traded in 2008. Three nations dominate the export of green Water resources: the USA, Argentina, and Brazil. As a country increases its export trade partners it tends to export relatively more blue Water. However, as a country increases its import trade partners it does not preferentially import Water from a specific source. The amount of Virtual Water that a country imports by increasing its import trade partners has been decreasing over time, with the exception of the soy trade. Both blue and green Virtual Water networks are efficient: 119 × 109 m3 blue and 105 × 109 m3 green Water were saved in 2008. Importantly, trade has been increasingly saving Water over time, due to the intensification of crop trade on more Water-efficient links.
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evolution of the global Virtual Water trade network
Proceedings of the National Academy of Sciences of the United States of America, 2012Co-Authors: Carole Dalin, M. Konar, Naota Hanasaki, Andrea Rinaldo, Ignacio RodrigueziturbeAbstract:Global freshWater resources are under increasing pressure from economic development, population growth, and climate change. The international trade of Water-intensive products (e.g., agricultural commodities) or Virtual Water trade has been suggested as a way to save Water globally. We focus on the Virtual Water trade network associated with international food trade built with annual trade data and annual modeled Virtual Water content. The evolution of this network from 1986 to 2007 is analyzed and linked to trade policies, socioeconomic circumstances, and agricultural efficiency. We find that the number of trade connections and the volume of Water associated with global food trade more than doubled in 22 years. Despite this growth, constant organizational features were observed in the network. However, both regional and national Virtual Water trade patterns significantly changed. Indeed, Asia increased its Virtual Water imports by more than 170%, switching from North America to South America as its main partner, whereas North America oriented to a growing intraregional trade. A dramatic rise in China's Virtual Water imports is associated with its increased soy imports after a domestic policy shift in 2000. Significantly, this shift has led the global soy market to save Water on a global scale, but it also relies on expanding soy production in Brazil, which contributes to deforestation in the Amazon. We find that the international food trade has led to enhanced savings in global Water resources over time, indicating its growing efficiency in terms of global Water use.
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Water for food the global Virtual Water trade network
Water Resources Research, 2011Co-Authors: M. Konar, Naota Hanasaki, Carole Dalin, Andrea Rinaldo, Samir Suweis, Ignacio RodrigueziturbeAbstract:We present a novel conceptual framework and methodology for studying Virtual Water trade. We utilize complex network theory to analyze the structure of the global Virtual Water trade associated with the international food trade. In the global Virtual Water trade network, the nations that participate in the international food trade correspond to the nodes, and the links represent the flows of Virtual Water associated with the trade of food from the country of export to the country of import. We find that the number of trade connections follows an exponential distribution, except for the case of import trade relationships, while the volume of Water that each nation trades compares well with a stretched exponential distribution, indicating high heterogeneity of flows between nations. There is a power law relationship between the volume of Virtual Water traded and the number of trade connections of each nation. Highly connected nations are preferentially linked to poorly connected nations and exhibit low levels of clustering. However, when the volume of Virtual Water traded is taken into account, this structure breaks down. This indicates a global hierarchy, in which nations that trade large volumes of Water are more likely to link to and cluster with other nations that trade large volumes of Water, particularly when the direction of trade is considered. Nations that play a critical role in maintaining the global network architecture are highlighted. Our analysis provides the necessary framework for the development of a model of global Virtual Water trade aimed at applications ranging from network optimization to climate change impact evaluations.
Sai Liang - One of the best experts on this subject based on the ideXlab platform.
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Virtual Water scarcity risk in China
Resources Conservation and Recycling, 2020Co-Authors: Haoran Zhao, Yu Liu, Sen Guo, Huiru Zhao, Anthony C.f. Chiu, Sai Liang, Jian-ping ZouAbstract:Abstract China's rapid economic growth has exerted great pressures on Water resources. Since local Water scarcity risk (LWSR, representing potential production losses in Water-dependent sectors due to Water scarcity) can be transmitted to downstream sectors via the economic trade system, this study measures the influences of LWSR on inter-provincial trade system using China's multi-regional input–output (MRIO) data including 31 provinces with 42 sectors in 2012. Top province-sectors in Virtual Water scarcity risk exports (VWSR exports, indicating the LWSR of one province being transmitted to other provinces via exports) and Virtual Water scarcity risk imports (VWSR imports, implying the vulnerability of the provinces to Water scarcity risk in other provinces via imports) are identified. Top VWSR exporters, such as Chemical Industry in Shanghai and Anhui, Agriculture in Hebei and Heilongjiang, and Textile in Jiangsu, are important to the resilience of the national economic system to Water scarcity due to the high levels of Water stress in these provinces. Top VWSR importers, such as Chemical Industry in Zhejiang, Jiangsu, and Shandong, Communication Equipment, Computers, and Other Electronic Devices in Jiangsu and Guangdong, and Food processing and tobaccos in Shandong, are particularly vulnerable to Water scarcity in other provinces. The results show that it is necessary for provinces to cooperatively manage Water resources in upstream sectors and provide references for decision-makers in highly vulnerable province-sectors to formulate strategies to mitigate Virtual Water scarcity risks.
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regional Water footprints and interregional Virtual Water transfers in china
Journal of Cleaner Production, 2019Co-Authors: Shidong Zhang, Yu Liu, Morteza Taiebat, Sai LiangAbstract:Abstract China faces increasingly severe Water stress from its limited, unevenly distributed Water resources and rapid economic growth. Interregional trade of goods and services within China further leads to a redistribution of Water resources through Virtual Water transfers. Such Virtual transfers are subject to constant changes due to the temporal variabilities in driving factors such as production efficiency, consumption patterns and population. Here we use the most recent public data to measure the Water footprints of 31 provincial-level regions in China and Virtual Water transfers among these regions in 2012. We find that Virtual Water transfer plays a significant role in regional Water footprints and greatly changes the allocation of Water resources towards regional consumptions. Already Water-scarce north China regions benefit from Virtual Water transfer by outsourcing Water-intensive products from other regions. However, the Water-scarce Northwest China suffers from Virtual Water transfer by exporting Water-intensive products. We suggest policy makers pay attention to demand-side measures to incentivize parties to improve Water efficiency in their production and reduce the consumption of Water-intensive goods. Policymaking should consider economic policy and Water conservation policy together to alleviate regional Water stress through Virtual Water transfers.
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Virtual Water Scarcity Risk to the Global Trade System
Environmental science & technology, 2017Co-Authors: Sai Liang, M. Konar, Zeqi Zhu, Anthony S.f. Chiu, Xiaoping JiaAbstract:Local Water scarcity risk (LWSR, meaning potential economic output losses in Water-using sectors due to physical Water scarcity) can be transmitted to downstream economies through the globalized supply chains. To understand the vulnerability of the global economy to Water scarcity, we examine the impacts of local Water scarcity risk on the global trade system from 1995 to 2009. We observe increasingly intensified geographical separation between physical Water scarcity and production losses due to Water scarcity. We identify top nation-sectors in Virtual Water scarcity risk (VWSR) exports (indicating local Water scarcity risk in each nation transmitted to foreign nations through its exports), including agriculture and utilities in major economies such as China, India, Spain, France, and Turkey. These nation-sectors are critical to the resilience of the global economy to Water scarcity. We also identify top nation-sectors in Virtual Water scarcity risk imports (indicating each nation’s vulnerability to fore...
