The aim of the paper is to investigate the main determinants of the bilateral virtual water (water used in the production of a commodity or service) flows associated with international trade in agricultural goods across the Mediterranean basin. We consider the bilateral gross flows of virtual water in the area and study what export-specific and import-specific factors are significantly associated with virtual water flows. We follow a sequential approach. Through a gravity model of trade, we obtain a “refined” version of the variable we aim to explain, one that is free of the amount of flows due to pair-specific factors affecting bilateral trade flows and that fully reflects the impact of country-specific determinants of virtual water trade. A number of country-specific potential explanatory variables, ranging from water endowments to trade barriers, from per capita GDP to irrigation prices, is presented and tested. To identify the variables that help to explain the bilateral flows of virtual water, we adopt a model selection procedure based on model averaging. Our findings confirm one of the main controversial results in the literature: larger water endowments do not necessarily lead to a larger ‘export’ of virtual water, as one could expect. We also find some evidence that higher water irrigation prices reduce (increase) virtual water ‘exports’ (‘imports’).

Determinants of virtual water flows in the Mediterranean / Fracasso, Andrea; Sartori, Martina; Schiavo, Stefano. - In: SCIENCE OF THE TOTAL ENVIRONMENT. - ISSN 0048-9697. - STAMPA. - 543:Part B(2016), pp. 1054-1062. [10.1016/j.scitotenv.2015.02.059]

Determinants of virtual water flows in the Mediterranean

Fracasso, Andrea;Sartori, Martina;Schiavo, Stefano
2016-01-01

Abstract

The aim of the paper is to investigate the main determinants of the bilateral virtual water (water used in the production of a commodity or service) flows associated with international trade in agricultural goods across the Mediterranean basin. We consider the bilateral gross flows of virtual water in the area and study what export-specific and import-specific factors are significantly associated with virtual water flows. We follow a sequential approach. Through a gravity model of trade, we obtain a “refined” version of the variable we aim to explain, one that is free of the amount of flows due to pair-specific factors affecting bilateral trade flows and that fully reflects the impact of country-specific determinants of virtual water trade. A number of country-specific potential explanatory variables, ranging from water endowments to trade barriers, from per capita GDP to irrigation prices, is presented and tested. To identify the variables that help to explain the bilateral flows of virtual water, we adopt a model selection procedure based on model averaging. Our findings confirm one of the main controversial results in the literature: larger water endowments do not necessarily lead to a larger ‘export’ of virtual water, as one could expect. We also find some evidence that higher water irrigation prices reduce (increase) virtual water ‘exports’ (‘imports’).
2016
Part B
Fracasso, Andrea; Sartori, Martina; Schiavo, Stefano
Determinants of virtual water flows in the Mediterranean / Fracasso, Andrea; Sartori, Martina; Schiavo, Stefano. - In: SCIENCE OF THE TOTAL ENVIRONMENT. - ISSN 0048-9697. - STAMPA. - 543:Part B(2016), pp. 1054-1062. [10.1016/j.scitotenv.2015.02.059]
File in questo prodotto:
File Dimensione Formato  
STotEn_2016.pdf

Solo gestori archivio

Tipologia: Versione editoriale (Publisher’s layout)
Licenza: Tutti i diritti riservati (All rights reserved)
Dimensione 528.69 kB
Formato Adobe PDF
528.69 kB Adobe PDF   Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11572/123302
Citazioni
  • ???jsp.display-item.citation.pmc??? 0
  • Scopus 35
  • ???jsp.display-item.citation.isi??? 30
social impact