An Input-Output Hydro-Economic Model to Assess the Economic Pressure on Water Resources

In this work, an input-output (IO) hydro-economic model was developed to assess economic pressure on water resources. Three innovations are incorporated with respect to previous literature: i) the development of a methodology for disaggregating the extended water demand (including grey water requirements) by economic sector, ii) the use of the IO side of the model to reclassify water demand by “extracting” and “demanding” sectors, and iii) the proposition of an improved indicator of pressure on water resources based on a “feasible” measure water supply. Empirically tested for the Tuscany region (Italy), our results show that the model can support an in-depth analysis of the water footprint of an economy, for example to map the pressures on water resources from specific industries to specific water bodies, and support decisions in water management both at national and regional level