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Research Reports

KREI publishes reports through medium- and long-term research related to agricultural and rural policies, and through studies in various fields to promptly respond to current issues.

A Study on the Introduction and Utilization of Virtual Water to Agriculture

2012.12.30 23085
  • Author
    Kim, Yoonhyung
  • Publication Date
    2012.12.30
  • Original

Background of Research
As a basic study, the purpose of this research is to provide materials and data to introduce virtual water to the agriculture sector by reviewing the virtual water and water footprint theories, comparing agriculture water consumption estimates in long-term water resource plans and reviewing both domestic and international cases where virtual water has been applied.

Method of Research
This research report consists of 5 chapters. First, chapter 1 shows the necessity of the study and the methods used, and it contains a review of related works. In chapter 2, we explain the concepts of virtual water and water footprint, and review the methods of calculating domestic and foreign virtual water. We also review international cases. In chapter 3, we deduce the policy by calculating and comparing water footprints and agriculture water demands and calculate and analyze domestic food production and virtual water consumption using domestic and international cases of virtual water implementation, and we also draw implications for implementing domestic virtual water based on an analysis of the changes in virtual water consumption according to a consumption scenario, water earnings, and consumption that considers virtual water. In chapter 4, we conduct a virtual water trade analysis based on the results of free trade agreements. We also conduct a water efficiency analysis which can be useful to policy makers who make decisions related to agricultural water management. Lastly, chapter 5 consists of a summary and conclusion.

Research Results and Implications
The primary results and implications of this research are as follows:
The virtual water consumption for production generally showed increasing tendencies, mainly due to the increased production of livestock products (mostly meat).
The additional agricultural virtual water consumption required to meet the food self-sufficiency goals is expected to be 1,090.3 million m3 for 2015 and 920.0 million m3 for 2020.
Based on the results of virtual water earnings and consumption, using the water footprint theory, the expected decrease in virtual water consumption due to the KOR·US FTA is 304 million m3, while the expected decrease of virtual water consumption due to the KOR·EU FTA is 85 million m3. When both free trade agreements are considered at the same time, the expected decrease in virtual water consumption is 389 million m3, while the decreased amount of agricultural water is 13% of dry field water.
The water efficiency index which considers virtual water and distinguishes industry sectors with high agricultural water efficiency from industry sectors with low agricultural water efficiency can provide useful information when considering policies that distribute water to areas with high water efficiency.

Researchers: Yoon-Hyung Kim, Hong-Sang Kim, Jeong-Seung Kim
Research Period: 2012. 1~2012. 12
E-mail address: yonhk2@krei.re.kr

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