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Economic analysis of water resources in Japan: using factor decomposition analysis based on input-output tables

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  • Kumiko Kondo

Abstract

This article explores the cause-and-effect relationship between the exports of manufactured goods and water resources (virtual water). Little is known about virtual water flows in relation to Japan’s exports of manufactured goods. The research is based on the Japanese input-output tables and factor decomposition analysis (1980–2000). Virtual water exports include both “direct” water exports (the water utilized to manufacture final goods) and “indirect” water exports (the water required to produce intermediate goods). In the analysis, the change in virtual water exports is decomposed into three determinant factors: the direct water coefficient change, indirect water coefficient change, and export volume change. The findings imply that the export volume change was the most influential factor in determining the total volume of Japanese virtual water exports in the early 1980s; however, the volume of indirect water change exerts a stronger influence on the massive virtual water exports now and is greatly affected by subsidiaries. Manufacturers depend on the supply of water from developing countries to enhance their competitive strengths. Thus, the article suggests possible changes in virtual water trade flows between Japan and other countries. Copyright Springer Japan 2005

Suggested Citation

  • Kumiko Kondo, 2005. "Economic analysis of water resources in Japan: using factor decomposition analysis based on input-output tables," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 7(2), pages 109-129, June.
    • Handle: RePEc:spr:envpol:v:7:y:2005:i:2:p:109-129
    DOI: 10.1007/BF03353947
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    Citations

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    Cited by:

    1. Guangyao Deng & Liujuan Wang & Yanan Song, 2015. "Effect of Variation of Water-Use Efficiency on Structure of Virtual Water Trade - Analysis Based on Input–Output Model," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(8), pages 2947-2965, June.
    2. Lei Liu & Tong Wu & Zhihang Xu & Xiaofeng Pan, 2018. "The Water-Economy Nexus and Sustainable Transition of the Pearl River Delta, China (1999–2015)," Sustainability, MDPI, vol. 10(8), pages 1-15, July.
    3. Han-Shen Chen, 2015. "Using Water Footprints for Examining the Sustainable Development of Science Parks," Sustainability, MDPI, vol. 7(5), pages 1-21, May.
    4. Mubako, Stanley & Lahiri, Sajal & Lant, Christopher, 2013. "Input–output analysis of virtual water transfers: Case study of California and Illinois," Ecological Economics, Elsevier, vol. 93(C), pages 230-238.
    5. Xiuli Liu & Xikang Chen & Shouyang Wang, 2009. "Evaluating and Predicting Shadow Prices of Water Resources in China and Its Nine Major River Basins," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(8), pages 1467-1478, June.
    6. Hongwei Huang & Shan Jiang & Xuerui Gao & Yong Zhao & Lixing Lin & Jichao Wang & Xinxueqi Han, 2022. "The Temporal Evolution of Physical Water Consumption and Virtual Water Flow in Beijing, China," Sustainability, MDPI, vol. 14(15), pages 1-15, August.

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