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Is water consumption embedded in crop prices? A global data-driven analysis
Environmental Research Letters ( IF 6.7 ) Pub Date : 2020-09-21 , DOI: 10.1088/1748-9326/aba782
Benedetta Falsetti , Elena Vallino , Luca Ridolfi , Francesco Laio

Agricultural production exploits about 70% of all water withdrawals around the globe, but to date, it is not clear if and how this water consumption is taken into consideration in the price of the agricultural primary goods. To shed light on this point, we analyze the farm gate prices of twelve representative crops in the period 1991-2016, considering data from 162 countries in total. The crop price dependence on the water footprint is investigated, also accounting for the country’s water scarcity as a possible additional determinant of the price, and of the land footprint as a possible confounding factor. We find that prices of staple crops (e.g. wheat, maize, soybeans, and potatoes) typically embed the amount of water used for their production. Differently, food products that do not contribute in an essential way to the human diet and whose production is more export-oriented (e.g. coffee, cocoa beans, tea, vanilla) exhibit weaker or negligible water-price links. These variations may be ascribable to specific market dynamics related to the two product groups. Staple crops are often produced in markets where many producers have more space for price setting and may have an incentive to include also the value of water in the final crop price. In contrast, cash crops are cultivated in situations where few producers are ‘price takers’ with respect to the international market. This mechanism may decrease the influence of the water used on crop farm gate price composition. The understanding of different water impacts on crop prices may be useful for increasing efficiency in water allocation and governance decisions, with the aim of improved environmental sustainability in this domain.

中文翻译:

用水量是否包含在作物价格中?全球数据驱动的分析

农业生产利用了全球约 70% 的取水量,但迄今为止,尚不清楚是否以及如何在农业初级产品的价格中考虑到这种用水量。为了阐明这一点,我们分析了 1991-2016 年期间 12 种代表性作物的农场价格,总共考虑了来自 162 个国家的数据。调查了作物价格对水足迹的依赖,同时将国家的水资源短缺作为价格的一个可能的额外决定因素,以及将土地足迹作为一个可能的混杂因素。我们发现主要作物(例如小麦、玉米、大豆和马铃薯)的价格通常包含用于生产的水量。不同的是,对人类饮食没有重要贡献且生产更多以出口为导向的食品(例如咖啡、可可豆、茶、香草)与水价的联系较弱或可以忽略不计。这些变化可能归因于与两个产品组相关的特定市场动态。主食作物通常在市场上生产,在这些市场中,许多生产者有更多的定价空间,并且可能有动力将水的价值也包括在最终的作物价格中。相比之下,经济作物是在很少有生产者成为国际市场“价格接受者”的情况下种植的。这种机制可能会降低用水量对农作物农场价格构成的影响。
更新日期:2020-09-21
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