Analysing Andalusian Virtual Water Trade in an Input–Output Framework

Abstract

Andalusian agricultural sectors are relatively small, but account for 90% of 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, it is found that a substantial part of 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.