Virtual Water - Limitations of The Virtual Water Measure

Limitations of The Virtual Water Measure

Key shortcomings of virtual water measures are that the concept:

1. Relies on an assumption that all sources of water, whether in the form of rainfall or provided through an irrigation system, are of equal value.
2. Implicitly assumes that water that would be released by reducing a high water use activity would necessarily be available for use in a less water-intensive activity. For example, the implicit assumption is that water used in rangeland beef production would be available to be used to produce an alternative, less water-intensive activity. As a practical matter this may not be the case, nor might the alternatives be economic.
3. Fails as an indicator of environmental harm nor does it provide any indication of whether water resources are being used within sustainable extraction limits. The use of virtual water estimates therefore offer no guidance for policy makers seeking to ensure that environmental objectives are being met.

The deficiencies with the concept of virtual water mean that there is a significant risk in relying on these measures to guide policy conclusions. Accordingly, Australia's National Water Commission considers that the measurement of virtual water has little practical value in decision making regarding the best allocation of scarce water resources.

Other limitations more specific to the MENA (Middle East & North Africa) region include:

1. In MENA rural societies, farmers are by tradition politically influential and would prohibit new policies for water allocation. Reallocating the water resources adds a huge burden on the farmers especially when a large portion of those farmers use their land for their own food consumption which happens to be their only source of food supply.
2. Importing food could pose the risk of further political dependence. The notion of "Self Sufficiency" has always been the pride of the MENA region.
3. The use of virtual water lies in the religious regulations for charging for water. According to Al-Bukhari, Prophet Mohammad’s teachings, the Prophet said: “People are partners in three: Water,Herbs and Fire” (referring to basic energy resources). Therefore, and because farmers are generally poor and rain water, rivers and lakes are like a gift from God,the MENA countries might find it difficult to charge the farmers the full cost for water.