The effect of globalisation on water consumption: A case study of the Spanish virtual water trade, 1849–1935

This paper aims to analyse the impact on water consumption of trade expansion in the first era of globalisation. To that end, we have chosen the case of Spain, a semi-arid country with significant cyclical water shortages. pecifically, we are interested in answering the following questions. What volume of water was required for exports of agricultural and food products? How did this variable evolve over time? Which factors drove this evolution? In short, we wish to understand the impact on water resources of Spainʹs entry into world agriculture and food markets. y, we examine virtual water trade flows in the long run. Secondly, we attempt to disentangle certain major driving forces underlying these trajectories. In order to establish the role played by trade in the final net balance of water, a Decomposition Analysis (DA) is applied. Our findings show the great pressures that the first globalisation imposed on not only domestic but also foreign water resources. Trade volumes as well as trade patterns were essential factors driving rising virtual water flows, while yield improvements contributed smoothly to moderation in the expansion of water flows.