Evaluation of Virtual Water Flows in Iran's Economy: Analysing Intersectoral Water Relationships Using Inpu-Output Model

Document Type : Original Article

Authors

1 Associate Professor in Economics, Department of Economics Yazd University

2 Masters in Economics, Department of Economics Yazd University

Abstract

In the recent years, increasing demand for water resources and on the other hand, limitation of these resources, led to water shortage became a serious issue in Iran. Nowadays, the demand-side management has considered as a desirable approach to resolving the issue of water shortage. In this context, explaining that how is water consumed in the economic system (as consumers about 95 percent of total water use), can be a valuable aid for policy makers and planners of water sector. Accordingly, the aim of this study is evaluation of virtual water flows between different economic sectors in the Iran, both from domestic and foreign sources. For this purpose, input-output model (table of 2011) is used. The results show that in many sectors of the economy, indirect water use are significantly more than their direct use. Based on these results, if all Iran's economic sectors to satisfy their final demand, consumed an additional cubic meter of water, About 332 m3 of water consumed indirectly in the whole economy that about 75 percent is from domestic sources. Also about 81.4 percent of indirect water use is related to "Agriculture" sector. Since, most volume of virtual water flows in economic sectors are related to their dependence on agriculture sector, recommended to increase water use efficiency in this sector.

Keywords

Journal of Econometric Modelling
Volume 2, Issue 4 - Serial Number 7
September 2018
Pages 131-157

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