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Are we in deep water? Water scarcity and its limits to economic growth

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  • Distefano, Tiziano
  • Kelly, Scott

Abstract

Water is an important factor of production contributing both directly and indirectly to economic activity across all sectors and regions of the global economy. Water scarcity may therefore go beyond having important consequences for people, society and ecological systems but may also pose a threat to economic growth. Using the latest IPCC RCP projections and the OECD Shared Socio-Economic Pathways (SSPs) for population growth and economic output, we develop a multi-regional input-output model to estimate future demand for water resources across different countries and sectors of the global economy.

Suggested Citation

  • Distefano, Tiziano & Kelly, Scott, 2017. "Are we in deep water? Water scarcity and its limits to economic growth," Ecological Economics, Elsevier, vol. 142(C), pages 130-147.
    • Handle: RePEc:eee:ecolec:v:142:y:2017:i:c:p:130-147
    DOI: 10.1016/j.ecolecon.2017.06.019
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    References listed on IDEAS

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    More about this item

    Keywords

    Water scarcity; Multi-regional input-output model; Climate change; Scenarios; Supply chains; Virtual water;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • F18 - International Economics - - Trade - - - Trade and Environment

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