Analyzing Andalusian virtual water trade in an input-output framework

Abstract

Andalusian agricultural sectors are relatively small, but account for 90% of the annual water consumption. More than 50% of the agricultural final demands is exported to other Spanish regions or abroad. Using the concept of virtual water within an input-output framework, we find that a substantial part of the Andalusian water consumption is embodied in its exports. Considering the virtual water content of its trade, Andalusia is a net exporter of water. Examining regional policy aspects, a reduction in the exports abroad of agricultural products yields considerable benefits in terms of water savings while the negative effects are only moderate.