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Main Authors: Dongin Kim, Sandro Steinbach, Carlos Zurita
Format: Artículo Open Access
Published: Wiley 2025
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Online Access:https://onlinelibrary.wiley.com/doi/10.1002/aepp.70021
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author Dongin Kim
Sandro Steinbach
Carlos Zurita
author_facet Dongin Kim
Sandro Steinbach
Carlos Zurita
Dongin Kim
Sandro Steinbach
Carlos Zurita
collection Wiley Open Access
contents Virtual Water Trade and Economic Integration: The Role of Trade Agreements in Global Water Redistribution Dongin Kim Sandro Steinbach Carlos Zurita Applied Economic Perspectives and Policy ABSTRACT This paper examines the impact of economic integration agreements (EIAs) on virtual water trade (VWT) using a three‐way gravity model and a novel dataset integrating international and intra‐national water flows. We find that EIAs increase VWT by 18.2%, with deeper integration having a greater impact. Agreements containing water management provisions expand VWT by 42.8%, compared to 16.4% for those without. These provisions facilitate virtual water exports from water‐abundant regions while curbing them from water‐scarce regions. While limitations remain in how current trade policies address water allocation imbalances, our results suggest the potential for embedding targeted environmental clauses in EIAs to align trade flows with water availability and support more sustainable patterns of global resource use. 10.1002/aepp.70021 http://onlinelibrary.wiley.com/termsAndConditions#vor
doi_str_mv 10.1002/aepp.70021
format Artículo Open Access
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institution Wiley Open Access
license_str_mv http://onlinelibrary.wiley.com/termsAndConditions#vor
publishDate 2025
publisher Wiley
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spellingShingle Virtual Water Trade and Economic Integration: The Role of Trade Agreements in Global Water Redistribution
Dongin Kim
Sandro Steinbach
Carlos Zurita
Applied Economic Perspectives and Policy
Virtual Water Trade and Economic Integration: The Role of Trade Agreements in Global Water Redistribution Dongin Kim Sandro Steinbach Carlos Zurita Applied Economic Perspectives and Policy ABSTRACT This paper examines the impact of economic integration agreements (EIAs) on virtual water trade (VWT) using a three‐way gravity model and a novel dataset integrating international and intra‐national water flows. We find that EIAs increase VWT by 18.2%, with deeper integration having a greater impact. Agreements containing water management provisions expand VWT by 42.8%, compared to 16.4% for those without. These provisions facilitate virtual water exports from water‐abundant regions while curbing them from water‐scarce regions. While limitations remain in how current trade policies address water allocation imbalances, our results suggest the potential for embedding targeted environmental clauses in EIAs to align trade flows with water availability and support more sustainable patterns of global resource use. 10.1002/aepp.70021 http://onlinelibrary.wiley.com/termsAndConditions#vor
title Virtual Water Trade and Economic Integration: The Role of Trade Agreements in Global Water Redistribution
topic Applied Economic Perspectives and Policy
url https://onlinelibrary.wiley.com/doi/10.1002/aepp.70021