Virtual Water Trade Network: Understanding Global Water Footprints

What is Virtual Water?

Virtual water refers to the water used in the production of goods and services, including food, textiles, and other commodities. When these products are traded internationally, the embedded water moves with them from one region to another.

The concept was introduced by Professor Tony Allen to highlight the importance of water resources in global trade and their impact on regional water scarcity.

How Does Virtual Water Flow Through Trade?

Virtual water flows through international trade as goods are produced using local water resources. For instance, a country that imports beef from another region is effectively importing the water used to produce that beef.

The flow of virtual water can exacerbate water scarcity in regions where production exceeds available water resources, leading to increased demand on already stressed water systems.

Impact on Water Scarcity

Exporting countries with high water consumption for production may see an increase in their Blue Water Scarcity Index if they export large volumes of goods that require significant amounts of water.

Importing regions might experience a decrease in local water stress as they rely less on their own water resources due to the import of virtual water.

Real-World Examples

For example, Australia's cotton industry heavily relies on irrigation, making it a significant exporter of virtual water. When this cotton is exported, the embedded water moves with it, potentially increasing the Blue Water Scarcity Index in importing regions.

Similarly, Brazil's coffee production uses substantial amounts of water, contributing to its virtual water exports and affecting the water balance in importing countries.

Frequently asked questions

Try it live

Everything above runs in your browser — open Virtual Water Trade Network and change the parameters while it is running. Nothing is installed, nothing is uploaded, the whole model lives in one tab.