Virtual Water Trade in the Mediterranean: Today and Tomorrow

Abstract

Virtual water trade refers to the implicit content of water in the production of goods and services. When trade is undertaken, there is an implicit exchange of water. In countries where water is relatively scarce, water-intensive goods are expensive to produce, so that imports normally exceed exports and the economy virtually imports water. This paper provides some estimates of virtual water trade patterns in the Mediterranean, which is an area where water is scarce, unevenly distributed, and progressively insufficient because of climate change and reduced precipitation. We analyse two cases: the current virtual water trade structure, related to trade in agricultural goods, and a future scenario, simulated by means of a computable general equilibrium model, where reduced agricultural productivity, induced by lower water availability, is taken into account.