Abstract
The water footprint assessment, particularly for the agricultural sector, is often a valuable input to water policy formation globally. Efforts on reducing it focus on water-saving actions through adoption of irrigation technological improvements. However, gained water efficiency enhances agricultural output productivity and water consumption remains equivalent as before to attain higher income, causing the so-called water rebound effect. This rebound effect has been addressed in the literature through water pricing scenarios but with ambiguous results. In this work, two water trade-off multipliers are introduced to account for the impact of income increase and job creation on water consumption as a result of CAP 2014-2020 water saving actions. Build upon the knowledge gained in an EU funded project (CARERA , EU FP6), an input-output model is applied to estimate total water requirements with a special focus on several crops for a Mediterranean water-deprived region. Three policy scenarios are developed to measure the rebound effect of income and employment and determine the actual water footprint of the study area. Results indicate that one percent drop of water consumption by agriculture, diminishes the water footprint of the economy by only 0.33%. Furthermore, by incorporating indirect income and employment effects in the model, the water footprint is significantly increased.
Similar content being viewed by others
Availability of Data and Material
Available upon request.
Code Availability
Available upon request.
References
Alcott B (2005) Jevons’ paradox. Ecol Econ 54(1):9–21. https://doi.org/10.1016/j.ecolecon.2005.03.020
Aldaya MM, Hoekstra AY (2010) The water needed for Italians to eat pasta and pizza. Agric Syst 103(6):351–360. https://doi.org/10.1016/j.agsy.2010.03.004
Allan AJ (1993) Fortunately there are substitutes for water: otherwise our hydropolitical futures would be impossible. In Priorities for Water Resources Allocation and Management. Southampton, United Kingdom: Overseas Development Administration, London, UK, pp 13–26. https://doi.org/10.1017/s0020860400081924
Allan AJ (1998) Virtual water: a strategic resource, global solutions to regional deficits. Groundwater 36(4):545–546.
Alston JM, Pardey PG (2014) Agriculture in the global economy. J Econ Perspect 28(1):121–146. https://doi.org/10.1257/jep.28.1.121
Bae J, Dall’erba S (2018) Crop production, export of virtual water and water-saving strategies in Arizona. Ecol Econ 146:148–156. https://doi.org/10.1016/j.ecolecon.2017.10.018
Bank of Greece (2011) The environmental, economic and social effects of climate change in Athens, Greece. Available at: https://www.bankofgreece.gr/Publications/ClimateChange_FullReport_bm.pdf
Berbel J, Mateos L (2014) Does investment in irrigation technology necessarily generate rebound effects? A simulation analysis based on an agro-economic model. Agric Syst 128:25–34. https://doi.org/10.1016/j.agsy.2014.04.002
Boudhar A, Boudhar S, Ibourk A (2017) An input – output framework for analysing relationships between economic sectors and water use and intersectoral water relationships in Morocco. J Econ Struc. Springer, Berlin Heidelberg 6(9):1–25. https://doi.org/10.1186/s40008-017-0068-9
Chapagain AK et al (2005) The water footprint of cotton consumption. J Clean Energy Technol 4(1):43–47. https://doi.org/10.7763/jocet.2016.v4.251
de Miguel Á, Hoekstra AY, García-Calvo E (2015) Sustainability of the water footprint of the Spanish pork industry. Ecol Indic 57:465–474. https://doi.org/10.1016/j.ecolind.2015.05.023
Dethier J-J, Effenberger A (2011). Agriculture and development: A brief review of the literature. https://doi.org/10.1596/1813-9450-5553
Dietzenbacher E, Velázquez E (2007) Analysing andalusian virtual water trade in an input – output framework. Reg Stud 41(2):185–196. https://doi.org/10.1080/00343400600929077
Dono G et al (2013) Adapting to uncertainty associated with short-term climate variability changes in irrigated Mediterranean farming systems. Agric Syst 117:1–12. https://doi.org/10.1016/j.agsy.2013.01.005
Duarte R, Pinilla V, Serrano A (2014) The water footprint of the Spanish agricultural sector: 1860–2010. Ecol Econ 108:200–207. https://doi.org/10.1016/j.ecolecon.2014.10.020
Duarte R, Sa J, Bielsa J (2002) Water use in the Spanish economy: an input-output approach. Ecol Econ 43:71–85
Dumont A, Mayor B, López-Gunn E (2013) Is the rebound effect or jevons paradox a useful concept for better management of water resources? Insights from the irrigation modernisation process in Spain. Aquat Procedia 1:64–76. https://doi.org/10.1016/j.aqpro.2013.07.006
Eamen L, Brouwer R, Razavi S (2020) The economic impacts of water supply restrictions due to climate and policy change: A transboundary river basin supply-side input-output analysis. Ecol Econ 172:1–17. https://doi.org/10.1016/j.ecolecon.2019.106532
Elleuch MA et al (2019) Hybrid fuzzy multi-criteria decision making to solve the irrigation water allocation problem in the Tunisian case. Agric Syst 176:102644. https://doi.org/10.1016/j.agsy.2019.102644
ELSTAT (2020a) Hellenic statistical authority: agriculture, livestock, fishery. Available at: https://www.statistics.gr/en/statistics/agr. Accessed 8 Sep 2020
ELSTAT (2020b) Hellenic statistical authority: areas and production. Available at: https://www.statistics.gr/en/statistics/eco . Accessed 8 Sep 2020
ELSTAT (2020c) Hellenic statistical authority: national accounts. Available at: https://www.statistics.gr/en/statistics/-/publication/SPG06/2015. Accessed 8 Sep 2020
ELSTAT (2020d) Hellenic statistical authority: supply and use table, symmetric input - output table/2015. Available at: https://www.statistics.gr/en/statistics/-/publication/SEL38/2015. Accessed 22 Sep 2020
European Commission (2008) CARERA: the impact of CAP reform on the employment levels in rural areas. Available at: https://cordis.europa.eu/project/id/22653
European Commission (2010) Communication from the commission to the European parliament, the council, the European economic and social committee and the committee of the regions. Brussels, Belgium. Available at: https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0672:FIN:en:PDF
European Commission (2018) Green direct payments. Available at: https://ec.europa.eu/info/sites/default/files/food-farming-fisheries/key_policies/documents/direct-payments-eligibility-conditions_en.pdf. Accessed 18 Sep 2020
European Commission (2019) Report from the commission to the European Parliament and the council on the implementation of the water framework directive (2000/60/EC) and the floods directive (2007/60/EC) second river basin management plans first flood risk management plans COM/2019/. Brussels, Belgium. Available at: https://ec.europa.eu/info/sites/info/files/com_report_wfd_fd_2019_en_1.pdf
European Commission (2020) Commission recommendations for Greece’s CAP strategic plan, commission staff working document. Brussels, Belgium. Available at: https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/key_policies/documents/cap-strategic-plans-c2020-846-swd-el_en.pdf
Eurostat (2020a) Water use by supply category and economical sector. Available at: https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=env_wat_cat&lang=en. Accessed 22 Sep 2020
Eurostat (2020b) Water use in the manufacturing industry by activity and supply category. Available at: https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=env_wat_ind&lang=en. Accessed 22 Sep 2020
Evangelou E et al (2016) Water footprint of industrial tomato cultivations in the pinios river basin: Soil properties interactions. Water (Switzerland) 8(11):1–13. https://doi.org/10.3390/w8110515
Fan J, Chen K, Zhang X (2020) Inequality of household energy and water consumption in China: An input-output analysis. J Environ Manag 269:1–10. https://doi.org/10.1016/j.jenvman.2020.110716
Flegg AT, Webber CD, Elliott MV (1995) On the appropriate use of location quotients in generating regional input – output tables. Reg Stud 29(6):547–561. https://doi.org/10.1080/00343409512331349173
Forssell O, Polenske KR (1998) Introduction: input-output and the environment. Econ Syst Res 10(2):91–97. https://doi.org/10.1080/09535319808565468
Freire-González J (2019) Does water efficiency reduce water consumption? The economy-wide water rebound effect. Water Resour Manag 33:2191–2202. https://doi.org/10.1007/s11269-019-02249-0
Government Gazette (2001) Action plan for the Thessalian field that has been characterized as a vulnerable zone by nitrate pollution of agricultural origin according to article 2 of 19652/1906/1999 of joint ministerial decision (Government Gazette 1575/B’). Greece. Available at: http://www.minagric.gr/images/stories/docs/agrotis/XOROTAJIA/4_thessaliko_pedio.pdf
Guan D, Hubacek K (2007) Assessment of regional trade and virtual water flows in China. Ecol Econ 61(1):159–170. https://doi.org/10.1016/j.ecolecon.2006.02.022
Han Y et al (2018) Assessing the water footprint of wheat and maize in Haihe River Basin, Northern China (1956–2015). Water 10(7):1–18. https://doi.org/10.3390/w10070867
Heider K et al (2018) Land fragmentation index for drip-irrigated field systems in the Mediterranean: A case study from Ricote (Murcia, SE Spain). Agric Syst 166:48–56. https://doi.org/10.1016/j.agsy.2018.07.006
Hoekstra AY (2003) Virtual water trade. In: Hoekstra A Y (ed) international expert meeting on virtual water trade. Delft, The Netherlands: UNESCO-IHE, Delft, p 293
Hoekstra AY, Chapagain AK (2007) The water footprints of Morocco and the Netherlands: Global water use as a result of domestic consumption of agricultural commodities. Ecol Econ 64:143–151. https://doi.org/10.1016/j.ecolecon.2007.02.023
Jensen RC, Mandeville TD, Karunaratne ND (1979) Regional economic planning: generation of regional input-output analysis. Croom Helm, London
Kampas A et al (2014) Rapid assessment of irrigation full cost: An application for the pinios local organization forland reclamation, Greece. Water Resour Econ 6:58–73. https://doi.org/10.1016/j.wre.2014.05.002
Kampas A, Petsakos A, Rozakis S (2012) Price induced irrigation water saving: Unraveling conflicts and synergies between European agricultural and water policies for a Greek Water District. Agric Syst 113:28–38. https://doi.org/10.1016/j.agsy.2012.07.003
Karunaratne ND (1980) Pollution macro-economic trade-off at regional level (an input-output analysis of moreton region). Empir Econ 5:15–29
Lampiris G, Karelakis C, Loizou E (2018) Evaluation of the impacts of CAP policy measures on a local economy: the case of a Greek region. Land Use Policy 77:745–751. https://doi.org/10.1016/j.landusepol.2018.06.019
Lampiris G, Karelakis C, Loizou E (2019) Comparison of non-survey techniques for constructing regional input – output tables. Ann Oper Res. Springer US. https://doi.org/10.1007/s10479-019-03337-5
Lenzen M (2011) Aggregation versus disaggregation in input – output analysis of the environment. Econ Sys Res 23(1):73–89. https://doi.org/10.1080/09535314.2010.548793
Lenzen M, Foran B (2001) An input – output analysis of Australian water usage. Water Policy 3:321–340
Leontief W (1970) Environmental Repercussions and the Economic Structure: An Input-Output Approach. Rev Econ Stat 52(3):262–271. https://doi.org/10.2307/1926294
Lindner S, Legault J, Guan D (2012) Disaggregating input – output models with incomplete information. Econ Syst Res 24(4):329–347. https://doi.org/10.1080/09535314.2012.689954
Llop M (2008) Economic impact of alternative water policy scenarios in the Spanish production system: An input – output analysis. Ecol Econ 68:288–294. https://doi.org/10.1016/j.ecolecon.2008.03.002
Llop M (2013) Water reallocation in the input – output model. Ecol Econ, Elsevier B.V 86:21–27. https://doi.org/10.1016/j.ecolecon.2012.10.020
Llop M, Ponce-Alifonso X (2015) Identifying the role of final consumption in structural path analysis: An application to water uses. Ecol Econ 109:203–210. https://doi.org/10.1016/j.ecolecon.2014.11.011
Loizou E et al (2019) The role of agriculture as a development tool for a regional economy. Agric Syst 173:482–490. https://doi.org/10.1016/j.agsy.2019.04.002
Loizou S et al (2000) Regional economic development and environmental repercussions: an environmental input-output approach stratos. Int Adv Econ Res 6(3):373–386. https://doi.org/10.1007/BF02294958
Mattas K et al (2006) Deriving regional I-O tables and multipliers. In: Bonfiglio A, Esposti R, Sottile F (eds) Rural Balkans and EU integration: An input-output approach. Milan, Italy: Franco Angeli, pp 75–120
Mattas K, Loizou E (2017) The CAP as a job stabiliser. EuroChoices 16(3):23–26. https://doi.org/10.1111/1746-692X.12170
Mattas K, Tsakiridou E (2010) Shedding fresh light on food industry’s role: the recession’s aftermath. Trends Food Sci Technol 21(4):212–216. https://doi.org/10.1016/j.tifs.2009.12.005
Mekonnen MM, Hoekstra AY (2010a) A global and high-resolution assessment of the green, blue and grey water footprint of wheat. Hydrology and Earth System Sciences 14(7):1259–1276. https://doi.org/10.5194/hess-14-1259-2010
Mekonnen MM, Hoekstra AY (2010b) The green, blue and grey water footprint of farm animals and animal products. Delft, The Netherlands
Mekonnen MM, Hoekstra AY (2011) The green, blue and grey water footprint of crops and derived crop products. Hydrol Earth Syst Sci 15(5):1577–1600. https://doi.org/10.5194/hess-15-1577-2011
Mekonnen MM, Hoekstra AY (2020) Sustainability of the blue water footprint of crops. Adv Water Resour 143:103679. https://doi.org/10.1016/j.advwatres.2020.103679
Miller RE, Blair PD (2009) Input-output analysis: foundations and extensions. Second. Cambridge University Press, Cambridge, UK
Ministry of Environment and Energy (2017) Management plan of the river basins of thessalia river basin district (in Greek) Athens, Greece. Available at: http://wfdver.ypeka.gr/wp-content/uploads/2017/12/EL08_SDLAP_APPROVED.pdf
Minx JC et al (2009) Input – output analysis and carbon footprinting: an overview of applications. Econ Syst Res 21(3):187–216. https://doi.org/10.1080/09535310903541298
Ministry of Rural Development and Food (2021) Monitoring of rural development program 2014-2020. Available at: http://www.agrotikianaptixi.gr/el/content/parakoloythisi. Accessed 26 Mar 2021
Mubako S, Lahiri S, Lant C (2013) Input – output analysis of virtual water transfers: case study of California and Illinois. Ecol Econ 93:230–238. https://doi.org/10.1016/j.ecolecon.2013.06.005
Okadera T, Watanabe M, Xu K (2006) Analysis of water demand and water pollutant discharge using a regional input-output table: An application to the City of Chongqing, upstream of the Three Gorges Dam in China. Ecol Econ 58:221–237. https://doi.org/10.1016/j.ecolecon.2005.07.005
Pereira LS, Cordery I, Iacovides I (2012) Improved indicators of water use performance and productivity for sustainable water conservation and saving. Agric Water Manag 108:39–51. https://doi.org/10.1016/j.agwat.2011.08.022
Rivera NM (2016) Disaggregation of sectors in social accounting matrices using a customized Wolsky method: a comment on its estimation bias. Appl Econ Lett 23(11):785–789. https://doi.org/10.1080/13504851.2015.1109031
Roobavannan M et al (2017) Allocating environmental water and impact on basin unemployment: role of a diversified economy. Ecol Econ 136:178–188. https://doi.org/10.1016/j.ecolecon.2017.02.006
Saunders HD (1992) The Khazzoom-Brookes Postulate and Neoclassical Growth. Energy J 13(4):131–148. Available at: https://www.jstor.org/stable/41322471__;!!NLFGqXoFfo8MMQ!82LdNs_9afa5nQ8F-rP_OLYiRj2ymjAkE8BAHRdD_ydiBp_o7S44DfX7MXy5K1-iGgi1HsE$
Scheierling SM, Loomis JB, Young RA (2006) Irrigation water demand: A meta-analysis of price elasticities. Water Resour Res 42(1):1–9. https://doi.org/10.1029/2005WR004009
Scheierling SM, Young RA, Cardon GE (2004) Determining the price-responsiveness of demands for irrigation water deliveries versus consumptive use. J Agric Resour Econ 29(2). Available at: https://www.jstor.org/stable/40987223
Song J et al (2018) The agricultural water rebound effect in China. Ecol Econ 146:497–506. https://doi.org/10.1016/j.ecolecon.2017.12.016
Sun T, Huang Q, Wang J (2017) Estimation of irrigation water demand and economic returns of water in Zhangye Basin. Water (Switzerland) 10(1):1–21. https://doi.org/10.3390/w10010019
UN (1999) Handbook of Input-Output Table Compilation and Analysis. United Nations, New York
UN (2020) Ensure availability and sustainable management of water and sanitation for all. Sustain Dev Goals. Available at: https://sdgs.un.org/goals/goal6. Accessed 10 Dec 2020
UNEP/MAP (2016) Mediterranean Strategy for Sustainable Development 2016-2025. Valbonne. Available at: https://wedocs.unep.org/bitstream/handle/20.500.11822/7700/-Mediterranean_strategy_for_sustainable_development_2016-2025_Investing_in_environmental_sustainability_to_achieve_social_and_economic_development-20.pdf?sequence=3
UNESCO (2020) UN-water, 2020: united nations world water development report 2020: water and climate change, Paris. Available at: https://unesdoc.unesco.org/ark:/48223/pf0000372876.locale=en
Velazquez E (2006) An input – output model of water consumption: analysing intersectoral water relationships in Andalusia. Ecol Econ 56:226–240. https://doi.org/10.1016/j.ecolecon.2004.09.026
Wang W et al (2014) Relationships between regional economic sectors and water use in a water-scarce area in China: A quantitative analysis. J Hydrol 515:180–190. https://doi.org/10.1016/j.jhydrol.2014.04.057
Wang Y, Xiao HL, Lu MF (2009) Analysis of water consumption using a regional input – output model: Model development and application to Zhangye City, Northwestern China. J Arid Environ 73:894–900. https://doi.org/10.1016/j.jaridenv.2009.04.005
Wang Z et al (2013) An input -output approach to evaluate the water footprint and virtual water trade of Beijing, China. J Clean Prod 42:172–179. https://doi.org/10.1016/j.jclepro.2012.11.007
Wolsky AM (1984) Disaggregating input-output models. Rev Econo Stat 66(2):283–291. https://doi.org/10.2307/1925829
Xu S et al (2019) Coupling and coordination degrees of the core water – energy – food nexus in China. Int J Environ Res Public Health 16(9):1648. https://doi.org/10.3390/ijerph16091648
Zhan-Ming C, Chen GQ (2013) Virtual water accounting for the globalized world economy: National water footprint and international virtual water trade. Ecol Indic 28:142–149. https://doi.org/10.1016/j.ecolind.2012.07.024
Funding
No funding was received for this research.
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Ethics Approval
Not applicable.
Consent to Participate
Not applicable.
Conflicts of Interest/Competing Interests
None.
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Highlights
• Income and employment growth increase the water rebound effect
• Water policy impact scenarios development by examining CAP water saving actions
• Irrigation efficiency by 1% reduces water footprint of the economy by 0.33%
• The rebound effect may increase water footprint up to 47%
Rights and permissions
About this article
Cite this article
Gkatsikos, A., Mattas, K., Loizou, E. et al. The Neglected Water Rebound Effect of Income and Employment Growth. Water Resour Manage 36, 379–398 (2022). https://doi.org/10.1007/s11269-021-03032-w
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11269-021-03032-w