Virtual water and water trade in Andalusia. A study by means of an input-output model

Andalusian agricultural sectors are relatively small, but consume by 90% of the available water resources. More than 50% of the final demands for agricultural products are exported to other Spanish regions or abroad. Using a virtual water concept with an input-output framework, we find that a substantial part of the Andalusian water consumption is necessary for exports. Considering the water content of its trade, Andalusia is found to be a net exporter of water, whereas it is an extremely arid region. Examining regional policy aspects, a reduction in the exports abroad of agricultural products yields considerable benefits in terms of water savings and only moderate costs.