scholarly journals Direct and indirect water use within the Australian economy

Water Policy ◽  
2018 ◽  
Vol 20 (6) ◽  
pp. 1227-1239
Author(s):  
Beatriz Reutter ◽  
Paul A. Lant ◽  
Joe L. Lane

Abstract We present the first analysis of water use in the Australian economy to account for inter-state trade, exports and consumption patterns, across all economic sectors and incorporating a temporal analysis. This is achieved by using the environmentally extended input-output technique, combining state-level input-output and water accounts from the Australian Bureau of Statistics. Results show that the three big eastern economies (New South Wales, Victoria, Queensland) rely mostly on water used within their jurisdictions. Approximately one-third of water consumption is for exported commodities, with the biggest export flows of virtual water being associated with agricultural production. Comparing results across the years (2000–2011), the water consumption associated with the provision of goods and services has decreased by 32% for exports, and by 38% for domestic markets. To date in Australia, the focus for improved trans-boundary water management (within Australia) has been on improved mechanisms for sharing physical allocation of water; these results provide the trans-boundary economic dependencies related to water availability. Recent innovations in the compilation of economic input-output models create an opportunity to progress this analysis, exploring in detail the economy–water interlinkages. It is our intention that the paper shows the value of analysing water flows using the multi-regional input-output techniques.

2014 ◽  
Vol 15 (2) ◽  
pp. 317-326
Author(s):  
Jordan Hristov ◽  
Aleksandra Martinovska-Stojcheska ◽  
Yves Surry

This study analyzed direct and indirect relationships in water consumption by Macedonian economic sectors using virtual water in an input–output framework. Macedonia was found to be characterized by intensive water consumption, with some sectors having a significant virtual water content in their products. Virtual water multipliers were used to analyze the trade balance and determine whether national commercial trade strategies are in line with Heckscher–Ohlin (HO) theory. It was found that Macedonia trade strategies in terms of virtual water were generally in line with HO theory. However, as a consequence of significant exports and high virtual water content in vegetables, fruit, grapes and sheep and goat products within the agriculture sector and in food and basic metal products in the manufacturing sector, the region was a net exporter of virtual water, losing about 124 million m3 of water at 2005 level or 18% of total water consumption. Reducing exports of the most water-intensive products with significant net positive exports would result in substantial water savings of 42% of total water consumption. The results presented here can help policy makers in promoting production specializations that are more environmentally sustainable or in redesigning existing water pricing policies at national level to encourage rational use of water.


Water ◽  
2021 ◽  
Vol 13 (6) ◽  
pp. 748
Author(s):  
Ming Li ◽  
Qingsong Tian ◽  
Yan Yu ◽  
Yueyan Xu ◽  
Chongguang Li

The sustainable and efficient use of water resources has gained wide social concern, and the key point is to investigate the virtual water trade of the water-scarcity region and optimize water resources allocation. In this paper, we apply a multi-regional input-output model to analyze patterns and the spillover risks of the interprovincial virtual water trade in the Yellow River Economic Belt, China. The results show that: (1) The agriculture and supply sector as well as electricity and hot water production own the largest total water use coefficient, being high-risk water use sectors in the Yellow River Economic Belt. These two sectors also play a major role in the inflow and outflow of virtual water; (2) The overall situation of the Yellow River Economic Belt is virtual water inflow, but the pattern of virtual water trade between eastern and western provinces is quite different. Shandong, Henan, Shaanxi, and Inner Mongolia belong to the virtual water net inflow area, while the virtual water net outflow regions are concentrated in Shanxi, Gansu, Xinjiang, Ningxia, and Qinghai; (3) Due to higher water resource stress, Shandong and Shanxi suffer a higher cumulative risk through virtual water trade. Also, Shandong, Henan, and Inner Mongolia have a higher spillover risk to other provinces in the Yellow River Economic Belt.


2019 ◽  
Vol 22 (1) ◽  
pp. 147-162
Author(s):  
Achmad Nurdany ◽  
Anggari Marya Kresnowati

While the study of the regional economy and its factors has been well-researched, relatively less is known on the issues for the digital economy sectors affecting the regional economy. Therefore, the aims of this paper are: to investigate the regional economic impact caused by digital economy sectors; to analyze the multiplier effect of these sectors on the output, income, and employment; and to calculate the economic impact of additional investment in the digital economy sectors. The study focuses on the region of East Java Province, Indonesia. The method used in this study is the input-output analysis (13 x 13 aggregation), which generates transaction of goods and services at a certain time. This study uses data from the Central Bureau of Statistics, Input-Output Table of East Java Province year 2015, which  includes 110 economic sectors, which are then grouped into digital related and non-digital related sectors. The result indicates that digital economy sectors have both backward and forward linkages to other sectors in the region. Further finding shows that digital related manufacturing sector has the highest multiplier effect on the output, income, and employment. While investment injection on the digital economy sectors, based on the analysis, will make better disruption on East Java economy. The government of the region should put an emphasis to attract more investment in the digital economy sectors.


Author(s):  
Mohammad Delpasand ◽  
Omid Bozorg-Haddad ◽  
Erfan Goharian

Abstract Uneven water distribution in the world is the main reason today that some countries face problems due to water scarcity. Human activities consume and pollute large amounts of water. Globally, agriculture is the largest water user by volume. However, the water used by industrial and household sectors is still significant. Water consumption and pollution are caused by specific activities such as irrigation, bathing, washing, cleaning, cooling and by various other processes. Little attention has been paid to how much water use and pollution ultimately result from such activities, and how much water is consumed by communities, compared to the attention paid to the structure of the public economy that supplies consumer goods and services. Overall, to mitigate water scarcity problems, there are several approaches that can be made, such as inter-basin water transfer, increasing efficiency of water consumption and also using new concepts such as virtual water and the water footprint. The footprint of a product is the amount of fresh water used to produce it, measured across the complete supply chain. Water footprint is a multidimensional indicator that shows the amount of water consumed by the source as well as the amount and types of contamination.


2013 ◽  
Vol 864-867 ◽  
pp. 1059-1069 ◽  
Author(s):  
Chang Bo Qin ◽  
Yang Wen Jia ◽  
Z. Su ◽  
Hans T.A. Bressers ◽  
Hao Wang

It is widely believed that the economic success in China is achieved at the expense of natural resources and has resulted in severe pollution of the environment, especially water resources. This study applies a hybrid input-output (IO) model linking economic and ecological systems in order to analyze water consumption and wastewater discharge in the Haihe River Basin. Within the environmental IO framework, a series of assessment indicators is calculated to assist in tracking both direct and indirect effects of freshwater consumption and wastewater discharge in the economic sector, as well as to distinguish the economic sectors that have greatest influence on water demand and pollution. Assessment results indicate that water consumption and pollution can be reduced by readjusting the structure of production, consumption and trade in the Haihe River Basin. It is concluded that in order to achieve sustainable development in the Haihe River Basin with its very poor water endowment, not only the direct but also the indirect effects on water demand and pollution should be considered when production, consumption and trade policies are formulated.


2016 ◽  
Vol 02 (02) ◽  
pp. 1650016
Author(s):  
Xueting Zhao ◽  
Randall W. Jackson

The success of China’s economic development has brought increasing pressures on its water resources, motivating it to better understand water use characteristics and how scarce water resources are transferred among regions. Virtual water is a term used to refer to the volume of freshwater consumed for producing traded goods and services. It reflects the actual human consumption of water resources and therefore is important for water resources management. The goal of this paper is to evaluate the current inter-regional virtual water trade (VWT) structure and to assess the implications of these trade patterns for water use and water conservation strategies in China. Based on the most recently available multi-regional input–output (MRIO) data, we have developed an extended inter-regional input–output (IRIO) model for eight economic regions in China to account for virtual water flows. The findings show that water use efficiency has increased over the years, but it is still unbalanced among the regions. The total amount of VWT has increased, and the major source of the trade is domestic inter-regional trade, especially intermediate products trade. Moreover, the main direction of virtual water transfer is from water-poor inland regions to water-rich regions, which is unfavorable for water resource allocation and efficiency. Therefore, in addition to enhancing water use efficiency and encouraging water-saving production alternatives, we suggest that China’s government should also adopt a market-based water pricing system.


2016 ◽  
Vol 02 (04) ◽  
pp. 1650025 ◽  
Author(s):  
Jordan Hristov ◽  
Aleksandra Martinovska-Stojcheska ◽  
Yves Surry

Sustainable management of water resources is imperative in the Western Balkan (WB) region, due to the seasonal, spatial and quality distribution of these resources. This paper analyzed water consumption and associated relationships between the economic sectors in Macedonia in 2005, based on input–output (IO) analysis. Using an environmentally extended IO framework, water consumption was investigated by developing several indicators. Disaggregation of the agriculture sector into 11 sub-sectors, combined with backward and forward linkage analysis, allowed us to identify rice, fruits, grapes and wine, other crop and cattle production as key water-consuming sub-sectors. The developed indicators revealed a high proportion of direct water consumption in agriculture and some other non-agricultural sectors such as mining and quarrying, other mining and quarrying products, food products and beverages as well as electrical machinery, which imposed significant pressure on natural water resources in Macedonia. Therefore, changes in production technology and specializations in Macedonia toward less water-intensive options are needed to ease the pressure on natural water resources. Extending the existing water pricing policy to capture economic, social and environmental aspects should also be considered. Moreover, the development and construction of water accounts and the disaggregation procedure have valuable implications for the WB countries. Applications elsewhere following this Macedonian example can provide a meaningful understanding of the role of water and interdependencies at regional level and increase awareness of the water resource availability at trans-boundary scale.


Water ◽  
2021 ◽  
Vol 13 (6) ◽  
pp. 869
Author(s):  
Rogério Barbosa Soares ◽  
Samiria Maria Oliveira da Silva ◽  
Francisco de Assis de Souza Filho ◽  
Witalo de Lima Paiva

This work aims to identify the key sectors of the economic structure, considering their water flows, and estimate each sector’s impact. The goal is to highlight systemic characteristics in the regional economy, establish water use priorities, and assess water security. Based on a regional input-output matrix, we use the following methodologies: the Rasmussen and Hirschman indices for the ‘forward and backward linkages’; simple multipliers of production, job, and income; and the elasticity of water consumption to final water demand. Thirty-two economic sectors and household consumption are analysed. From the elasticity of final water demand, we find that both trade and household consumption put more pressure on water consumption. Furthermore, a joint analysis of the applied methodologies shows that: (a) the trade sector is more relevant for the linkage of water flows, (b) the agriculture sector has the highest direct water consumption, and (c) the public administration sector has the highest intermediate water consumption.


2020 ◽  
Vol 12 (18) ◽  
pp. 7424
Author(s):  
Ehsan Qasemipour ◽  
Farhad Tarahomi ◽  
Markus Pahlow ◽  
Seyed Saeed Malek Sadati ◽  
Ali Abbasi

The growth of Iran’s agricultural sector in the past few decades has exerted enormous pressure on its aquifers. There is a strong disparity between economic development and natural resource endowments, which threatens water and food security. In this paper, we used a multiregional input–output (MRIO) framework to assess the virtual water flows in Iran. We also estimate the internal and external water footprint of regions compared to their water availability. The results show that the northern part of the country, with no water scarcity, imported virtual water through the trade of goods and services, while severely water-scarce regions were net virtual water exporters. Iran had a net export of 1811 Mm3 per annum. While blue water resources (surface and groundwater) accounted for 92.2% of the national water footprint, 89.1% of total exports were related to the agriculture sector, contributing to only 10.5% of the national income. The results suggest that policy-makers should reconsider the current trade policy regarding food production liberalization in order to make Iran’s limited water resources available for producing industrial goods, which can contribute more to the economy.


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