Recent analyses of the evolution and structure of trade in virtual water revealed that the number of trade connections and volume of virtual water trade have more than doubled over the past two decades, and that developed countries increasingly draw on the rest of the world to alleviate the pressure on their domestic water resources. Our work builds on these studies, but fills three important gaps in the research on global virtual water trade. First, we note that in previous studies virtual water volumes are lumped together from countries experiencing vastly different degrees of water scarcity. We therefore incorporate water scarcity into assessments of virtual water flows. Second, we note that some previous studies assess virtual water networks only in terms of immediate water used for food production, but omit indirect virtual water used throughout the supply chains underlying all traded goods. In our analysis we therefore use input-output analysis to also include indirect virtual water. We note existing conflicting views about whether trade in virtual water can lead to overall savings in global water resources. We re-visit the Heckscher-Ohlin Theorem in the context of direct as well as indirect virtual water in order to determine whether international trade can be seen as a feasible demand management instrument in alleviating water scarcity. We find that the structure of global virtual water networks changes significantly after adjusting for water scarcity. In addition, when indirect virtual water is appraised the Heckscher-Ohlin Theorem can be validated.

Studienarbeit aus dem Jahr 2010 im Fachbereich VWL - Umweltökonomie, Note: 1,3, Humboldt-Universität zu Berlin (Environmental and Resource Economics), Veranstaltung: Land and Water Management, Sprache: Deutsch, Abstract: Water is distributed unevenly over the globe, making it scarce in many regions of the world. This scarcity is projected to increase significantly due to rapid population growth and increasing per capita affluence, leading to higher per capita water consumption. Global climate change may be an additional factor intensifying water shortness in some regions due to an increasing number of drought events. As water scarcity immediately effects agricultural production, food supply is at risk of becoming insecure in countries poorly endowed with water. ALLAN introduced the concept of virtual water in mid 1990s, stressing that import of food crops and thereby of virtual water could be the solution to water scarcity and food insecurity in water deficient countries (see ALLAN, 1996). Meanwhile, the trade of virtual water is strongly promoted in the water resources literature as a policy tool serving to enhance global water use efficiency, release pressure on nations’ short water resources, ensure food security, and even to prevent wars over water (see ALLAN, 1998, p.545). This is supported by the suggestion that food staples are readily available on the world market at prices undercutting the costs of production (see ALLAN, 1996, p.1, YANG AND ZEHNDER, 2002, p.1422). Following its potential benefits, ALLAN even called it ‘‘the dream solution in water-stressed economies’’ (see ALLAN, 2002, cited in ROTH AND WARNER, 2007, p.258). This paper aims at calling attention to the limitations of the concept and the adverse effects virtual water trade can have on the exporting aswell as on the importing countries. While the implementation of virtual water trade may lead to the desired outcome in terms of water savings, it may be socially, economically, and environmentally detrimental, if its many implications are not taken into account and economic and social adjustments to it are lacking. The paper is structured as follows: in chapter 2, the concept of virtual water will be explained by its definition and application to international trade, thereby highlighting its potential in water saving. Chapter 3 is devoted to the analysis of the relationship between water scarcity and virtual water trade, showing that water scarcity is only in few cases the driver of importing water-intensive commodities. [...]

Virtual water trade increased with globalisation. However, this trade does not always flow in such direction, that water abundant regions supply water scarce regions with water intense products. Often the opposite happens and depletive water trade intensifies causing water scarcity. This work focuses on the Water-Energy-Soil-Trade-Nexus with each element seen as a materialisation of discourses. Two cases illustrate specific parts of the Nexus, firstly, the close relationship of market liberalisation, foreign direct investment and virtual water trade is represented with Viet Nam’s Doi Moi policy and rapid economic growth. Secondly, the water-energy dimension linkages are drawn by following the case of hydraulic fracturing from the U.S. to Australia’s gas drills embedded in a global perspective. This work helps to understand especially cases, where virtual water trade dries out water resources in already vulnerable areas.

The groundbreaking new concept that reveals the true and hazardous extent of our everyday water consumption. How much water does it take to make a cup of coffee? The answer may shock you: 140 litres! That's the true amount of water used in growing, producing, packaging and shipping the beans you use to make your morning coffee. Your lunchtime hamburger takes 2,400 litres and that favourite pair of blue jeans a whopping 11,000 litres. In fact, all the goods we buy - from food to clothing to computers - have a water cost in the form of virtual water: the powerful new concept that reveals the hidden facts of our real water consumption. At a time when the world's resources are being used up at increasingly alarming rates what can we do to help tackle the threat to our planet's most precious resource? World water expert Tony Allan - creator of the virtual water concept - shows the way. In this stimulating and enjoyable book he exposes the real impact of our modern lifestyle and shows how we as individuals, and governments globally, can make a vital contribution to managing our water use in a more sustainable and planet-friendly way.

Water scarcity is an increasing problem in many parts of the world, yet conventional supply-side economics and management are insufficient to deal with it. One of the key water management options for water demand is water trading. This book explores the role of water trading, as an instrument of integrated water resources management.

Virtual Water explores the role of "virtual water" – the water embedded in a product – in ongoing conversations of agriculture, trade and sustainability in an increasingly inter-connected world. A pervasive theme throughout the book is the general lack of knowledge of the use of water in producing and consuming food. The chapters, arising from a workshop supported by the OECD Co-operative Research Programme: Biological Resources Management for Sustainable Agricultural Systems, on virtual water, agriculture and trade at the University of Nebraska-Lincoln, consider questions of gaps in knowledge, why sustainability matters and the policy implications of virtual water trade. Contributors show how water is a lens through which to examine an array of vital issues facing humanity and the planet: human and animal health; food production; environmental management; resource consumption; climate change adaptation and mitigation; economic development, trade and competitiveness; and ethics and consumer trust. Virtual Water will be of great interest to scholars of water, resource management and consumption, the environmental aspects of development, agriculture and food production. It originally published as a special issue of Water International.

Globalization of Water is a first-of-its-kind review of the critical relationship between globalization and sustainable water management. It explores the impact of international trade on local water depletion and pollution and identifies “water dependent” nations. Examines the critical link between water management and international trade, considering how local water depletion and pollution are often closely tied to the structure of the global economy Offers a consumer-based indicator of each nation’s water use: the water footprint Questions whether trade can enhance global water use efficiency, or whether it simply shifts the environmental burden to a distant location Highlights the hidden link between national consumption and the use of water resources across the globe, identifying the threats facing ‘water dependent’ countries worldwide Provides a state-of-the-art review and in-depth data source for a new field of knowledge

This text is divided into three parts. Part I focuses on the need for management to assess the challenges of water scarcity and plan changes based on proper valuation and financial instruments, international co-operation and efficient use. Part II analyses the problems of water scarcity and the available solutions in each main sector: water supply and sanitation, energy, health, agriculture, ecosystems and biodiversity. Part III assesses the state of the debate following the third World Water Forum and sets out the priorities for action, including increased investment, institutional reform and capacity building in the water sector. Downloadable resources with extensive case studies and statistical data accompanies this text.

This book presents a selected literature review and case studies for both physical and virtual water transfer. It offers an overview to showcase the interprovincial physical and virtual water transfer within China, and then demonstrates the effects of both approaches in dealing with regional water scarcity; the three cases presented in the Yangtze River Basin demonstrate the role of physical water transfer in improving water quality and restoring water ecosystems; while a Shanghai case highlights the impact of Shanghai’s virtual water import on water quantity and quality stress to other regions. This book promotes systematic approaches combining both virtual and physical water transfer solutions to deal with water quantity and quality issues. The book is intended for senior undergraduates, graduate students, lecturers and researchers in water management.