An input–output model of water consumption: Analysing intersectoral water relationships in Andalusia

• Published in: Ecological economics Vol. 56; no. 2; pp. 226 - 240
• Main Author: Velazquez, Esther
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 15.02.2006; Elsevier
• Series: Ecological Economics
• Subjects: Andalusia; Data analysis; Economic analysis; Environmental economics; Freshwater; Indicators; Input-output analysis; Input–output model; Regional studies; Spain; Water consumption; Water management; Spain, Andalusia; Spain; Water consumption; O2; Input–output model; C67; N5
• ISSN: 0921-8009; 1873-6106
• DOI: 10.1016/j.ecolecon.2004.09.026

This paper presents an input–output model of sectoral water consumption, created by combining the extended Leontief input–output model with the model of energy use developed by Proops. The analysis is applied to Andalusia, a region situated in the South of Spain which is characterized by water shortage. We determine which economic sectors consume the greatest quantities of water, both directly and indirectly, and to what extent this natural resource may become a limiting factor in the growth of certain production sectors. The model allows us to distinguish between direct and indirect consumption, thus offering the possibility of designing an economic and environmental policy oriented towards water saving. Additionally, the model allows simulation of possible changes in water consumption caused by certain environmental measures, as well as their consequences on the regional economy.