An An input-output hydro-economic model to assess the economic pressure on water resources

This study develops a hydroeconomic input-output (IO) model to evaluate the pressures that economic activities exert on water resources. For a better understanding of the sectoral and total impacts, three innovations are incorporated with respect to previous literature: i) the development of a meth...

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Main Authors: Benedetto Rocchi, Mauro Viccaro, Gino Sturla
Format: Article
Language:English
Published: Firenze University Press 2024-01-01
Series:Bio-based and Applied Economics
Subjects:
Online Access:https://oaj.fupress.net/index.php/bae/article/view/14957
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author Benedetto Rocchi
Mauro Viccaro
Gino Sturla
author_facet Benedetto Rocchi
Mauro Viccaro
Gino Sturla
author_sort Benedetto Rocchi
collection DOAJ
description This study develops a hydroeconomic input-output (IO) model to evaluate the pressures that economic activities exert on water resources. For a better understanding of the sectoral and total impacts, three innovations are incorporated with respect to previous literature: i) the development of a methodology for disaggregating the extended water demand (blue water plus grey water) 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 of water supply. Empirically tested in the Tuscany region (Italy), our findings reveal significant changes in the structure of economic pressures when adopting the proposed approach. When assessing direct total water withdrawals, agriculture accounts for 61% and manufacture for 20% of regional pressures. However, when considering only the demand for water resources exposed to scarcity reclassified by demanding sectors, agriculture falls to 5% and manufacture rises to 54%. By incorporating grey water in water demand and a “feasible” measure of supply, the regional water exploitation indicator increases from 0.05 to 0.19, and can even reach 0.30 with dry hydrological conditions, beyond the threshold for moderate scarcity (0.20). The unbalance between water supply and demand worsen even more when considering the balance of surface waters only (1.16). The proposed model can support an in-depth analysis of an economy's water footprint, allowing impacts to be mapped from specific industries to particular water bodies. This information can support decisions about sustainable water management at the national and regional levels.
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spelling doaj.art-6a147d4d87c541f1944efd3d06ec8ccf2024-01-19T14:38:45ZengFirenze University PressBio-based and Applied Economics2280-61802280-61722024-01-01An An input-output hydro-economic model to assess the economic pressure on water resourcesBenedetto Rocchi0Mauro Viccaro1Gino Sturla2Università degli Studi di FirenzeUniversità della BasilicataUniversità degli Studi di Firenze This study develops a hydroeconomic input-output (IO) model to evaluate the pressures that economic activities exert on water resources. For a better understanding of the sectoral and total impacts, three innovations are incorporated with respect to previous literature: i) the development of a methodology for disaggregating the extended water demand (blue water plus grey water) 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 of water supply. Empirically tested in the Tuscany region (Italy), our findings reveal significant changes in the structure of economic pressures when adopting the proposed approach. When assessing direct total water withdrawals, agriculture accounts for 61% and manufacture for 20% of regional pressures. However, when considering only the demand for water resources exposed to scarcity reclassified by demanding sectors, agriculture falls to 5% and manufacture rises to 54%. By incorporating grey water in water demand and a “feasible” measure of supply, the regional water exploitation indicator increases from 0.05 to 0.19, and can even reach 0.30 with dry hydrological conditions, beyond the threshold for moderate scarcity (0.20). The unbalance between water supply and demand worsen even more when considering the balance of surface waters only (1.16). The proposed model can support an in-depth analysis of an economy's water footprint, allowing impacts to be mapped from specific industries to particular water bodies. This information can support decisions about sustainable water management at the national and regional levels. https://oaj.fupress.net/index.php/bae/article/view/14957Input-outputextended water demandfeasible water supplyextended water exploitation indexTuscany
spellingShingle Benedetto Rocchi
Mauro Viccaro
Gino Sturla
An An input-output hydro-economic model to assess the economic pressure on water resources
Bio-based and Applied Economics
Input-output
extended water demand
feasible water supply
extended water exploitation index
Tuscany
title An An input-output hydro-economic model to assess the economic pressure on water resources
title_full An An input-output hydro-economic model to assess the economic pressure on water resources
title_fullStr An An input-output hydro-economic model to assess the economic pressure on water resources
title_full_unstemmed An An input-output hydro-economic model to assess the economic pressure on water resources
title_short An An input-output hydro-economic model to assess the economic pressure on water resources
title_sort an input output hydro economic model to assess the economic pressure on water resources
topic Input-output
extended water demand
feasible water supply
extended water exploitation index
Tuscany
url https://oaj.fupress.net/index.php/bae/article/view/14957
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