Economy-water nexus in agricultural sector: decomposing dynamics in water footprint by the LMDI

Traditional economic activities induce environmental pressures. In order to ensure sustainable economic growth, one needs to decouple it from the environmental pressures. Sustainable growth of the agricultural sector is topical in the sense that economic activity supports rural populations, whereas...

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Main Authors: Weihua Su, Sibo Chen, Tomas Baležentis, Ji Chen
Format: Article
Language:English
Published: Vilnius Gediminas Technical University 2020-01-01
Series:Technological and Economic Development of Economy
Subjects:
Online Access:https://www.bme.vgtu.lt/index.php/TEDE/article/view/11908
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author Weihua Su
Sibo Chen
Tomas Baležentis
Ji Chen
author_facet Weihua Su
Sibo Chen
Tomas Baležentis
Ji Chen
author_sort Weihua Su
collection DOAJ
description Traditional economic activities induce environmental pressures. In order to ensure sustainable economic growth, one needs to decouple it from the environmental pressures. Sustainable growth of the agricultural sector is topical in the sense that economic activity supports rural populations, whereas the resulting environmental pressures may affect diverse groups of population. Thus, the analysis of water footprint related to crop farming is important in the sense of efficient resource use and sustainable development of agriculture in general. In this paper, we focus on Lithuanian crop farming and the related green and grey water footprints. Specifically, we decompose the changes in the water footprints during 2000–2016 by exploiting the Logarithmic Mean Divisia Index. Due to the expansion of the areas harvested, the scale effect appeared as an important driver of growth in green and grey water footprints. The shifts in spatial distribution of area harvested virtually had no influence on the dynamics in either of the water footprints. The crop-mix effect was much higher for the grey water footprint (51% over the period of 2000–2015) than it was the case for the green water footprint (21%). The yield growth induced growth in both green and grey water footprints.
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spelling doaj.art-35399f5f9b4a4afa923394b7cb2b29152022-12-21T20:19:55ZengVilnius Gediminas Technical UniversityTechnological and Economic Development of Economy2029-49132029-49212020-01-0126110.3846/tede.2020.11908Economy-water nexus in agricultural sector: decomposing dynamics in water footprint by the LMDIWeihua Su0Sibo Chen1Tomas Baležentis2Ji Chen3College of Statistics and Mathematics, Zhejiang Gongshang University, Hangzhou 310018, China College of Statistics and Mathematics, Zhejiang Gongshang University, Hangzhou 310018, China Lithuanian Institute of Agrarian Economics, A. Vivulskio g. 4A-13, 03220 Vilnius, LithuaniaCollege of Statistics and Mathematics, Zhejiang Gongshang University, Hangzhou 310018, China Traditional economic activities induce environmental pressures. In order to ensure sustainable economic growth, one needs to decouple it from the environmental pressures. Sustainable growth of the agricultural sector is topical in the sense that economic activity supports rural populations, whereas the resulting environmental pressures may affect diverse groups of population. Thus, the analysis of water footprint related to crop farming is important in the sense of efficient resource use and sustainable development of agriculture in general. In this paper, we focus on Lithuanian crop farming and the related green and grey water footprints. Specifically, we decompose the changes in the water footprints during 2000–2016 by exploiting the Logarithmic Mean Divisia Index. Due to the expansion of the areas harvested, the scale effect appeared as an important driver of growth in green and grey water footprints. The shifts in spatial distribution of area harvested virtually had no influence on the dynamics in either of the water footprints. The crop-mix effect was much higher for the grey water footprint (51% over the period of 2000–2015) than it was the case for the green water footprint (21%). The yield growth induced growth in both green and grey water footprints.https://www.bme.vgtu.lt/index.php/TEDE/article/view/11908water economicseconomy-water nexuswater footprintIndex Decomposition AnalysisLogarithmic Mean Divisia Indexcrop farming
spellingShingle Weihua Su
Sibo Chen
Tomas Baležentis
Ji Chen
Economy-water nexus in agricultural sector: decomposing dynamics in water footprint by the LMDI
Technological and Economic Development of Economy
water economics
economy-water nexus
water footprint
Index Decomposition Analysis
Logarithmic Mean Divisia Index
crop farming
title Economy-water nexus in agricultural sector: decomposing dynamics in water footprint by the LMDI
title_full Economy-water nexus in agricultural sector: decomposing dynamics in water footprint by the LMDI
title_fullStr Economy-water nexus in agricultural sector: decomposing dynamics in water footprint by the LMDI
title_full_unstemmed Economy-water nexus in agricultural sector: decomposing dynamics in water footprint by the LMDI
title_short Economy-water nexus in agricultural sector: decomposing dynamics in water footprint by the LMDI
title_sort economy water nexus in agricultural sector decomposing dynamics in water footprint by the lmdi
topic water economics
economy-water nexus
water footprint
Index Decomposition Analysis
Logarithmic Mean Divisia Index
crop farming
url https://www.bme.vgtu.lt/index.php/TEDE/article/view/11908
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AT sibochen economywaternexusinagriculturalsectordecomposingdynamicsinwaterfootprintbythelmdi
AT tomasbalezentis economywaternexusinagriculturalsectordecomposingdynamicsinwaterfootprintbythelmdi
AT jichen economywaternexusinagriculturalsectordecomposingdynamicsinwaterfootprintbythelmdi