Julio Sánchez-Chóliz

Water use in the Spanish economy: an input-output approach

Against the background of the water limitations that often appear in Spain, the aim of this paper is to study the behaviour of the productive sectors of the Spanish economy as direct and indirect consumers of water. To that end, we employ input � /output analysis, with the particular methodology being based on the linkages analysis known as the Hypothetical Extraction Method (HEM). We have introduced three modifications to this method. First, the valuation is made in terms of water consumption. Secondly, we obtain the components of the impacts of each block of activity into which the economy is divided, with these components being described as the internal effect, mixed linkage, net or external backward linkage, and net or external forward linkage. Thirdly, this methodology is used to detect key sectors. Our results confirm the marked importance of the Agriculture, Food and Other Services blocks as regards the direct and indirect consumption of water in general. We also find that Other Services, Chemicals, Metals and Electronics and Agriculture blocks play an important role in explaining the consumption of drinking water. Moreover, the HEM analysis allows us to classify productive sectors according to their forward or backward linkage character in a way that is more precise than that permitted by earlier methods. Finally, this methodology can be extended to other types of environmental pressures. # 2002 Elsevier Science B.V. All rights reserved.

CO2 emissions embodied in international trade: evidence for Spain

Abstract The objective of this paper is to analyse the sectoral impacts that Spanish international trade relations have on present levels of atmospheric pollution using an input–output model. We try to evaluate the exports and imports of the Spanish economy in terms of the direct and indirect CO 2 emissions (CO 2 embodied) generated in Spain and abroad. The results show a slightly exporting behaviour in the Spanish economy which, nevertheless, hides important pollution interchanges. Moreover, the sectors transport material, mining and energy, non-metallic industries, chemical and metals are the most relevant CO 2 exporters and other services, construction, transport material and food the biggest CO 2 importers, and those whose final demands also embody more than 70% of the CO 2 emissions.

Production Chains and Linkage Indicators

This paper uses a framework of production chains, which emerge from the vertical integration processes, in order to propose a general definition of linkage indicators. This definition is based on blocks of sectors and offers, among others, the following advantages. A reduction in the aggregation requirement, the resolution of the problems associated with the so-called distribution matrices, an easier analysis of the linkage components and, finally, the possibility to shed light on the links between Hypothetical Extraction Methods and sectoral analyses. Moreover, because of its general form, it helps to identify analogies between different types of indicators.

Water Consumption Based on a Disaggregated Social Accounting Matrix of Huesca (Spain)

Making use of the social accounting matrix (SAM) of the Spanish province of Huesca in 2002, updated following Junius and Oosterhavens GRAS method and work by Lenzen and colleagues, we have estimated the water footprint of the region. The water footprint is defined as the volume of water needed for the production of the goods and services consumed by the inhabitants plus the direct consumption in the households. We built an open Leontief model, which gives us the water embodied in the production of goods. The valuations concern the industrial, service, and domestic sectors’ water consumption, the embodied water imported from and exported to other countries, and the agrarian water use. This agrarian sector, clearly the sector that shows the greatest water consumption, is carefully examined, so it is disaggregated for the calculations into 31 irrigation land products, dry land, and 9 livestock classifications. As a consequence, the framework enables the observation of the relationships and flows of water taking place among all the sectors and activities in the economy. Finally, we also make use of the per capita water footprint estimations to get a clear picture of how the responsibility for water use is distributed once foreign trade is taken into account.

HOUSEHOLDS’ BEHAVIOUR AND ENVIRONMENTAL EMISSIONS IN A REGIONAL ECONOMY

Households have significant demand-side potential to drive reductions in atmospheric emissions, including both direct and indirect emissions. Our analysis focuses on the behaviour of a regional economy (Aragon, Spain) and its impact on greenhouse gases (GHG) and sulphur dioxide (SO2). Using a CGE model, we simulate scenarios and evaluate the environmental impact of adopting changes considered in the Aragonese Climate Change and Clean Energy Strategy. Specifically, we analyse the impact of electricity savings and the promotion of public transport (bus or train) versus private car use. The results indicate that 1 MWh of saving in electricity consumption by households could reduce emissions of GHG by 0.112 kt of equivalent CO2 and 8.209 kg of SO2 with a shift in demand preferences and 0.022 kt of equivalent CO2 and 7.612 kg of SO2 with an efficiency improvement. Moreover, household changes in demand preferences regarding private/public transport, also contribute to reduce emissions.

Technological change in irrigated agriculture in a semiarid region of Spain

Technological change plays a decisive role in irrigated agriculture, which is particularly challenging in semiarid regions. The main objective of this paper is to assess four kinds of alternative technological improvements aimed at dealing with future water availability, especially in the case of extreme events like drought. We evaluate these technologies for a better understanding of what form should be applied in irrigated agriculture in a context of limits on natural resources. We develop a dynamic computable general equilibrium (CGE) model, whose production structure distinguishes between rainfed and irrigated crops, and between a variety of irrigated crops. Land use changes are also evaluated. As well as technological change, we consider the Water Framework Directive (EC 2000/60), which establishes water cost recovery as a key goal. Thus, we assess strategies that combine irrigation water pricing strategies and improved technology. Our results show that policy strategies that focus on fostering technical progress can mitigate the long-term economic effects of downward trends in water supplies, even in drought years. The study also confirms that the absence of price volatility achieved through a water pricing strategy could improve the sustainable use of water.

Environmental Footprints and Scenario Analysis for Assessing the Impacts of the Agri-Food Industry on a Regional Economy

The study of the environmental footprints of various sectors and industries is increasingly demanded by institutions and by society. In this context, the regional perspective is becoming particularly important, and even more so in countries such as Spain, where the autonomous communities have the primary responsibility for implementing measures to combat environmental degradation and promote sustainable development, in coordination with national strategies. Taking as a case study a Spanish region, Aragon, and significant economic sectors, including agriculture and the food industry, the aim of this work is twofold. First, we calculate the associated environmental footprints (of emissions and water) from the dual perspectives of production (local impacts) and consumption (final destination of the goods produced by the agri‐food industry). Second, through a scenarios analysis, based on a general equilibrium model designed and calibrated specifically for the region, we evaluate the environmental implications of changes in the agri‐food industry (changes in the export and import pattern, as well as in consumer behavior). This model provides a flexible approximation to the environmental impacts, controlling for a wider range of behavioral and economic interactions. Our results indicate that the agri‐food industry has a significant impact on the environment, especially on water resources, which must be responsibly managed in order to maintain the differential advantage that a regional economy can have, compared to other territories.

The Economic Impacts of Newly Irrigated Areas in the Ebro Valley

This paper uses regional input-output tables to analyse the long-term impact resulting from the implementation of the newly irrigated areas provided for under the terms of the Ebro Basin Hydrological Plan. We have described the whole process by way of two consecutive stages. In the first, where the final demand is fixed, we use a demand-driven input-output model and we incorporate technical change through the reduction of the coefficients. In the second, the output of all sectors increases, with the increases in the vector of output being proportional to the forward linkages vector of the Agriculture sector. In this stage, our objective is to obtain a final demand vector that ensures that the agricultural value added increases to a prescribed value of v 1 *. Whilst the results demonstrate the positive effects of the transformation, they also reveal effects of a very different character in each sector. Thus, the Agriculture, Livestock and Agri-food industry sectors show significant increases in their gross outputs caused by the forward effects, whilst the Energy, Metal and Chemicals sectors reduce their outputs. These results shed light on the contradictory nature of the processes of development and technical change.

Environmental Footprints and Scenario Analysis for Assessing the Impacts of the Agri‐Food Industry on a Regional Economy: A Case Study in Spain

The study of the environmental footprints of various sectors and industries is increasingly demanded by institutions and by society. In this context, the regional perspective is becoming particularly important, and even more so in countries such as Spain, where the autonomous communities have the primary responsibility for implementing measures to combat environmental degradation and promote sustainable development, in coordination with national strategies. Taking as a case study a Spanish region, Aragon, and significant economic sectors, including agriculture and the food industry, the aim of this work is twofold. First, we calculate the associated environmental footprints (of emissions and water) from the dual perspectives of production (local impacts) and consumption (final destination of the goods produced by the agri‐food industry). Second, through a scenarios analysis, based on a general equilibrium model designed and calibrated specifically for the region, we evaluate the environmental implications of changes in the agri‐food industry (changes in the export and import pattern, as well as in consumer behavior). This model provides a flexible approximation to the environmental impacts, controlling for a wider range of behavioral and economic interactions. Our results indicate that the agri‐food industry has a significant impact on the environment, especially on water resources, which must be responsibly managed in order to maintain the differential advantage that a regional economy can have, compared to other territories.

ENDOGENOUS CYCLICAL GROWTH WITH A SIGMOIDAL DIFFUSION OF INNOVATIONS

The model we propose in this paper is an extension of the one described in Freeman et al. [Freeman, S., Hong, D. and Peled, D. (1999) Endogenous Cycles and Growth with Indivisible Technological Developments. Review of Economics Dynamics, 2, 403–432]. In our model, we incorporate the process of diffusion of major innovations and analyze macroeconomic effects on consumption, capital and aggregate output. Following Bresnahan and Trajtenberg [Bresnahan, T. and Trajtenberg, M. (1995) General Purpose Technologies: Engines of Growth?. Journal of Econometrics, 65, 83–108.], Helpman [Helpman, E. (ed.) (1998) General Purpose Technologies and Economic Growth. MIT Press] and Lipsey et al. [Lipsey, R.G., Carlaw, K. and Bekar, C. (2005) Economic Transformations: General Purpose Technologies and Long Term Economic Growth. Oxford University Press.] we assimilate major innovations with the emergence of certain GPTs, and we suggest that the diffusion process for these technologies, at a large scale, might follow an S-shaped pattern. The proposed model presents optimum stationary solutions which are cyclical and have a wave dynamic within each cycle. The cycles are characterized by certain co-movements in consumption, R&D investment, capital accumulation and output. Consideration of the innovation diffusion process highlights new aspects of endogenous cycles and long-run growth.