DETERMINANTS OF VIRTUAL WATER TRADE OF CEREAL CROPS IN SAUDI ARABIA

In this research, we used a gravity model to investigate whether water scarcity variables influence agricultural trade of cereal crops for Saudi Arabia. We compare the OLS, Fixed effects, Random effects, and Poisson Pseudo-Maximum Likelihood (PPML) estimators to determine the best model. The AIC, and multicollinearity, heteroskedasticity, and autocorrelation tests assist in determining estimation procedures and the final model. We cluster the errors by distance to improve the specific country effect variables, such as economic mass. We find that water-related variables influence virtual water imports of cereals, millet, corn, barely, and sesame.

Boons or boondoggles: An assessment of the Salton Sea water importation options

Several ways to address the looming ecological disaster that is the Salton Sea have been proposed — including water importation. Here we considered two options: importing ocean water from the Sea of Cortés and leasing water from agricultural users in the Imperial Valley. We estimated the monetary costs for importing Sea of Cortés water to the Salton Sea and compared that with the costs of transferring water from agricultural users to the Salton Sea. We found that leasing water from agriculture would be substantially cheaper than ocean water imports. Additionally, all the infrastructure for leasing water from growers exists, which means water transfers could begin immediately. That is important given the present and increasing environmental and human health damages that are occurring at the Salton Sea.

Subsurface Tension

A recent oil boom in Southern New Mexico has resulted in increased hydraulic fracturing operations in the region and, as a result, a steady and reliable supply of water to fuel such operations is required. As New Mexico regulations make it difficult to acquire a steady supply of water within the state, oil and natural gas producers are turning to unregulated areas in Texas, which permit unlimited pumping of groundwater. However, this groundwater is being pumped from the Pecos Valley aquifer, which is the same source of water that New Mexico is regulating within its borders. This issue is only one in a series of interstate water feuds between the two states. This Comment identifies the current practice of groundwater imports from Texas into New Mexico and the methods New Mexico might employ to limit or prevent such imports. Additionally, this Comment discusses an interstate compact as an alternative to New Mexico attempting to regulate water imports, which would undoubtedly lead to extensive litigation.

“Virtual Water” and Occam's Razor

Virtual Water has been criticized as merely being a jargon camouflaging crop-water requirements. This chapter attempts to contest this argument. From the neoclassical production theory, it is argued that virtual water cannot simply be expressed in terms of crop-water requirements. Rather, the notion of virtual water imports has deep economics embedded in it, along with tremendous social implications. This chapter brings to surface the new economics of water management that is deeply rooted in the notion of virtual water imports.

Paradox of Limited Water Resources in Iran and Goals of Self-Sufficiency in Agricultural Sector

Lack of water resources in Iran, especially in recent years, has faced the agricultural sector as the most important consumer of water resources, with serious challenges. In Iran, the agricultural sector accounted for more than 90% of water consumption. However, the focus on domestic production and self-sufficiency policy in staples (wheat, barley, maize and rice) has been emphasized in general agriculture's policy. This study was conducted to estimate the imported virtual water from the imports of basic products in Iran using defined indicators during 1961-2013. Also this study investigated the possibility of achieving self-sufficiency due to the limited water resources in Iran. The results of this study showed with the increase in cereal imports, virtual water imports from 0.28 billion cubic meters in 1961 increased to 17.6 billion cubic meters in 2013 and on average about 60% of virtual water imports in strategic products is related to wheat imports during the past 53 years. Other products in cereal (barley, maize and rice) are also indicative of the general trend of increasing imports of virtual water in development plans. The estimated long-run elasticity of virtual water imports in the cereal group compared with the country's water resources also showed that with a one percent reduction in renewable water resources of the country, the virtual water import in the main cereal group will increase equivalent to 2.89 percent and the determination coefficient more than 90 percent also confirms this negative relationship. According to this result and the emphasis on the fact that renewable water resources per capita in the country is falling increasingly, it cannot be expected that domestic production could compensate for the imports of the cereal group and virtual water imports with current technology, without increasing the water productivity and without additional harm to water resources.

Water footprints of cities – indicators for sustainable consumption and production

Water footprints have been proposed as sustainability indicators, relating the consumption of goods like food to the amount of water necessary for their production and the impacts of that water use in the source regions. We further developed the existing water footprint methodology, by globally resolving virtual water flows from production to consumption regions for major food crops at 5 arcmin spatial resolution. We distinguished domestic and international flows, and assessed local impacts of export production. Applying this method to three exemplary cities, Berlin, Delhi and Lagos, we find major differences in amounts, composition, and origin of green and blue virtual water imports, due to differences in diets, trade integration and crop water productivities in the source regions. While almost all of Delhi's and Lagos' virtual water imports are of domestic origin, Berlin on average imports from more than 4000 km distance, in particular soy (livestock feed), coffee and cocoa. While 42% of Delhi's virtual water imports are blue water based, the fractions for Berlin and Lagos are 2 and 0.5%, respectively, roughly equal to the water volumes abstracted in these two cities for domestic water use. Some of the external source regions of Berlin's virtual water imports appear to be critically water scarce and/or food insecure. However, for deriving recommendations on sustainable consumption and trade, further analysis of context-specific costs and benefits associated with export production will be required.

“Virtual Water” and Occam’s Razor

Virtual Water has been criticized as merely being a jargon camouflaging crop-water requirements. This chapter attempts to contest this argument. From the neoclassical production theory, it is argued that virtual water cannot simply be expressed in terms of crop-water requirements. Rather, the notion of virtual water imports has deep economics embedded in it, along with tremendous social implications. This chapter brings to surface the new economics of water management that is deeply rooted in the notion of virtual water imports.

Water footprints of cities – indicators for sustainable consumption and production

Water footprints have been proposed as sustainability indicators, relating the consumption of goods like food to the amount of water necessary for their production and the impacts of that water use in the source regions. We have further developed the existing water footprint methodology by globally resolving virtual water flows and import and source regions at 5 arc minutes spatial resolution, and by assessing local impacts of export production. Applying this method to three exemplary cities, Berlin, Delhi and Lagos, we find major differences in amounts, composition, and origin of green and blue virtual water imports, due to differences in diets, trade integration and crop water productivities in the source regions. While almost all of Delhi's and Lagos' virtual water imports are of domestic origin, Berlin on average imports from more than 4000 km distance, in particular soy (livestock feed), coffee and cocoa. While 42% of Delhi's virtual water imports are blue water based, the fractions for Berlin and Lagos are 2% and 0.5%, respectively, roughly equal to local drinking water abstractions of these cities. Some of the external source regions of Berlin's virtual water imports appear to be critically water scarce and/or food insecure. However for deriving recommendations on sustainable consumption and trade, further analysis of context-specific costs and benefits associated with export production will be required.