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The economic role of water in Macedonia: an input-output analysis and implications of Western Balkans

Hristov, Jordan LU ; Martinovska-Stojcheska, Aleksandra and Surry, Yves (2016) In Water Economics and Policy 2(4).
Abstract
Sustainable management of water resources is imperative in the Western Balkan (WB) region, due to the seasonal, spatial and quality distribution of these resources. This paper analyzed water consumption and associated relationships between the economic sectors in Macedonia in 2005, based on input–output (IO) analysis. Using an environmentally extended IO framework, water consumption was investigated by developing several indicators. Disaggregation of the agriculture sector into 11 sub-sectors, combined with backward and forward linkage analysis, allowed us to identify rice, fruits, grapes and wine, other crop and cattle production as key water-consuming sub-sectors. The developed
indicators revealed a high proportion of direct water... (More)
Sustainable management of water resources is imperative in the Western Balkan (WB) region, due to the seasonal, spatial and quality distribution of these resources. This paper analyzed water consumption and associated relationships between the economic sectors in Macedonia in 2005, based on input–output (IO) analysis. Using an environmentally extended IO framework, water consumption was investigated by developing several indicators. Disaggregation of the agriculture sector into 11 sub-sectors, combined with backward and forward linkage analysis, allowed us to identify rice, fruits, grapes and wine, other crop and cattle production as key water-consuming sub-sectors. The developed
indicators revealed a high proportion of direct water consumption in agriculture and some other non-agricultural sectors such as mining and quarrying, other mining and quarrying products, food products and beverages as well as electrical machinery, which imposed significant pressure on natural water resources in Macedonia. Therefore, changes in production technology and specializations in Macedonia toward less water-intensive options are needed to ease the pressure on natural water resources. Extending the existing water
pricing policy to capture economic, social and environmental aspects should also be considered. Moreover, the development and construction of water accounts and the disaggregation procedure have valuable implications for the WB countries. Applications elsewhere following this Macedonian example can provide a meaningful understanding of the role of water and interdependencies at regional level and increase awareness of the water resource availability at trans-boundary scale. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
input-output modelling, Macedonia, water consumption, Western Balkan, backward and forward linkages
in
Water Economics and Policy
volume
2
issue
4
external identifiers
  • wos:000399996100007
DOI
10.1142/S2382624X16500259
language
English
LU publication?
yes
id
5d3912fe-4bdd-4b4f-80b5-5c70a0cb853c
date added to LUP
2016-09-09 15:06:16
date last changed
2017-09-18 11:29:26
@article{5d3912fe-4bdd-4b4f-80b5-5c70a0cb853c,
  abstract     = {Sustainable management of water resources is imperative in the Western Balkan (WB) region, due to the seasonal, spatial and quality distribution of these resources. This paper analyzed water consumption and associated relationships between the economic sectors in Macedonia in 2005, based on input–output (IO) analysis. Using an environmentally extended IO framework, water consumption was investigated by developing several indicators. Disaggregation of the agriculture sector into 11 sub-sectors, combined with backward and forward linkage analysis, allowed us to identify rice, fruits, grapes and wine, other crop and cattle production as key water-consuming sub-sectors. The developed<br/>indicators revealed a high proportion of direct water consumption in agriculture and some other non-agricultural sectors such as mining and quarrying, other mining and quarrying products, food products and beverages as well as electrical machinery, which imposed significant pressure on natural water resources in Macedonia. Therefore, changes in production technology and specializations in Macedonia toward less water-intensive options are needed to ease the pressure on natural water resources. Extending the existing water<br/>pricing policy to capture economic, social and environmental aspects should also be considered. Moreover, the development and construction of water accounts and the disaggregation procedure have valuable implications for the WB countries. Applications elsewhere following this Macedonian example can provide a meaningful understanding of the role of water and interdependencies at regional level and increase awareness of the water resource availability at trans-boundary scale.},
  articleno    = {1650025},
  author       = {Hristov, Jordan and Martinovska-Stojcheska, Aleksandra and Surry, Yves},
  keyword      = {input-output modelling,Macedonia,water consumption,Western Balkan,backward and forward linkages},
  language     = {eng},
  number       = {4},
  series       = {Water Economics and Policy},
  title        = {The economic role of water in Macedonia: an input-output analysis and implications of Western Balkans},
  url          = {http://dx.doi.org/10.1142/S2382624X16500259},
  volume       = {2},
  year         = {2016},
}