Description: Sustainability, Vol. 10, Pages 205: Income, Economic Structure and Trade: Impacts on Recent Water Use Trends in the European Union Sustainability doi: 10.3390/su10010205 Authors: Rosa Duarte Vicente Pinilla Ana Serrano From the mid-1990s to the recent international economic crisis, the European Union (EU27) experienced a significant economic growth and a flat population increase. During these years, the water resources directly used by the EU countries displayed a growing but smooth trend. However, European activities intensively demanded water resources throughout the whole global supply chain. The growth rate of embodied water use was three times higher than the growth in water directly used by these economies. This was mainly due to the large upsurge of virtual water imports in the EU (e.g., about 25% of the change in water imports in the world was directly linked to the increasing imports in the EU27 countries). In this context, we analyze water use changes in the EU27 from 1995 to 2009, combining the production and consumption perspectives. To that aim, we use the environmentally extended input-output approach to obtain the volume of water embodied in domestic production and in trade flows at the sector and country levels. In the empirical analysis, we utilize multi-regional input-output data from the World Input Output Database. In addition, by means of a structural decomposition analysis we identify and quantify the factors explaining changes in these trends. We focus both on the role of domestic production and trade and estimate the associated intensity, technology and scale effects. This analysis is done for different clusters, identifying singular patterns depending on income criteria. Our results confirm the boost of demand growth in that period, the positive but negligible effect of structural change, and the decline in water intensity which, however, was not enough to compensate the effects on water associated to the economic expansion in the period. These findings also point at a gradual substitution of domestic water use for virtual water imports. More concretely, in most countries the food industry tended to reduce its backward linkages with the domestic agricultural sector, increasing the embodied water in agricultural imports from non-European regions.

Description: The study of the impact of economic activities on natural resources through global supply chains is increasingly demanded in the context of the growing globalization of economies and product fragmentation. Taking Spain as a case study and a sector with significant economic and environmental impacts, the agri-food industry, the objective of this work is two-fold. First, we estimate the associated water impact, both from the production and consumption perspectives, paying special attention to the water embodied in production exchanges among countries and sectors. To that aim, we use an environmentally-extended multiregional input-output model (MRIO). Second, we assess the main driving factors behind changes in direct and embodied water consumption between the years 1995 and 2009 by means of a structural decomposition analysis. The MRIO model provides a comprehensive estimate of the economic linkages among regions and economic sectors and, therefore, allows calculating the environmental impacts over international value chains. The results indicate that the food industry exerts large impacts on global water resources, particularly given the remarkable interactions with the domestic and foreign agricultural sectors, These growing linkages show how consumption patterns, and, therefore, lifestyles, involve large environmental impacts through the whole and global supply chains.